Lumoid Thinks Different About Apple Watch Retail Experience
Samantha Murphy Kelly, Mashable:
A startup called Lumoid will be renting out Apple Watches for $45 as a way to give consumers the opportunity to try out the pricey device before making a purchase. …
While Lumoid’s supply will be limited at first, the company has set up a waitlist to rent the Apple Watch after it goes on sale on April 24. …
The trial price will vary by model, but to rent the entry-level Apple Watch Sport, it will cost $45 — of which $25 will go toward a purchase, if the user decides to buy it. The trial for the Steel version will cost $55 and $30 will go toward a purchase.
Lumoid actually floated the idea back in February, and what didn’t make sense then makes even less sense now. For one thing, early indications were that Lumoid’s rental period would last an entire week (as with their other wearables), but 9to5Mac reports that the company “is offering Apple Watch rentals starting at $45 a day.” And even if that’s wrong (which it should be, since it’s ludicrously expensive), the limited duration of the program is problematic. And I don’t think Apple’s going to allow it, besides.
Consider: Apple Watch is being specifically marketed as an enhancement device for iPhone. As such, it seems fairly unlikely that most non-enthusiast types — early adopters scoff at the notion of rental services! — will actually understand and experience all of Apple Watch’s brand-defining nuances in only a week’s (or a couple of days’) time. Indeed, folks on the fence might come away from that short trial honeymoon totally nonplussed by the device’s perceived lack of app support and obvious utility.
Apple knows this.
With a carefully calculated rollout refined along the conventions of top-tier jewelry retailers, you can bet that Apple’s not willing to let some two-bit startup short-sell its next big thing. Blockbusters and rentals don’t go together anymore. So while it’s possible that Cupertino could modify their new product’s EULA to prevent rentals, it’s also unnecessary. Apple will be the sole retailer for Apple Watch for the foreseeable future. That means they’re going to withold all retailer/reseller privileges from Lumoid (and everyone else), thus rendering the latter’s “rentals-into-sales” business model utterly moot. I suppose Lumoid could sell their rental fleet as secondhand stock without much hindrance from Cook and company, but they’d probably have a hard time replacing that lineup with new merchandise for the next round of customers.
Look, if you’re not sure Apple Watch is right for you, just preorder one. Then, if you hate it, you can sell it during the (almost certain) post-launch shortage and probably turn a nice profit, too.
Maybe even enough to buy another Apple Watch.