Apple Watch is not the first smartwatch in the market. However, Apple’s technical skills, attention to detail, quality design, premium pricing strategy, product differentiation and massive marketing muscle can make it the best and vouched for watch. The wearable form factor can make it the best personal device that will make people even more addictive to technology.
Apple Watch is up against two odds, which Apple has already seen through in the past two product launches of iPhone and iPad. One, it has to battle it out with existing watchmakers to gain market share. Two, smartwatch has no existing market. Apple has to win the minds of watch buyers and create a market for smart watches. With Watch launch, Apple is set to fight the two won battles again, but together. In the context of Apple Watch launch, it is easy to correlate with, what the previous two product launches did to consumers and existing players.
1. The iPhone has been the best technological invention in the past decade that has changed how people live, communicate, entertain and consume services. The app store is phenomenal and has enabled many independent developers to become millionaires. Apple’s differentiating factor is the user friendliness and the availability of third party apps.
- Most of the business analysts have failed to foresee what iPhone can do to established phone makers like Nokia and Blackberry. Nokia, the best consumer device manufacturer struggled to package services into devices and Blackberry, the enterprise solution provider struggled to make user friendly beautiful devices.
- Apple has mastered the perfection of bundling services into devices and mesmerizing the consumers with unbelievably high quality smart devices that any one can dream of.
Health, payments, notifications, apps are enough differentiating factors for consumers to move away from traditional watches just like they did get addicted to iPhones.
2. The skepticism around Apple Watch launch looks very familiar with that of iPad launch.
- Smartwatch market is negligible, as similar to tablet market in 2010.
- Watch is criticized as a souped up version of 6th gen iPod with gold frame and a strapped leather. Like iPad was criticized as a big iPhone.
Despite the initial negative sentiments, apple has successfully sold 250 million iPads so far and created a market for tablet PC. Apple is expected to sell over two million watches compared to 300k iPads on launch day.
Change is constant in technology. History has shown many times in the past how fast companies go out of existence if they don’t innovate. That’s the stark truth in the era of digital disruption. Swiss watch manufacturers traditionally believe in watch as a status symbol and marketed lifetime warranty & engineering finesse as its appeal. Engineering marvels are always destined to museums rather than mainstream day to day usable products. The youth of this decade believe in wearing trendy, fashionable, latest and greatest of technology gadgets.
Don’t you think apple has already won the battle of smart watches? Leave your comments and questions below.
Technology & people lead, adept at many things.