Although the Apple Watch will be one of the best smart watches available, the lack of unique use cases for it means it will probably not have a significant enough competitive edge versus Samsung, LG and Sony.
This is according to Ronan de Renesse, lead analyst: Consumer Technology at Ovum, who adds tha cheap design copycats will most likely successfully thrive, especially in China, where the watch is set to launch on 24 April.
He adds that the Apple Watch’s comparatively high $349 entry-level price point will be more difficult to sustain.
However, the China launch will help Apple pass 10-million Apple Watch unit sales in 2015, bringing over $5-billion in revenues in its first year.
Ovum believes that Apple will have to go beyond just a great design and materials if it wishes to take the Apple Watch to the mass market and convince iPhone users who don’t wear a watch to wear one. While the iPhone and the iPad redefined their respective device segments when they launched, the Apple Watch will not play that role.
From Ian Fogg, director of mobile analysis at IHS Technology, adds: “Apple’s pricing demonstrates the confidence it has in the new Apple Watch’s functionality, design and consumer appeal.
“Unlike the original iPhone’s three main marketing messages, Tim Cook is pitching the Apple Watch as a versatile many-function device.
“With 18 hours of battery life, the Apple Watch won’t deliver sleep tracking. This leaves room for other health bands.”
He says that the Apple Watch threatens to replace iPhone usage by aiming to deliver more convenient access to many similar functions. “The Apple Watch can handle phone calls, leverage the iPhone via WiFi or Bluetooth, and doesn’t need a cellular radio built-in. This is unlike the approach of competitor smart watches from LG and Samsung which include a full mobile phone radio.”
Antonios Maroulis, analyst at IHS Technology, believes that Apple needs to prove why consumers need a smartwatch to confirm this is a mass market and to meet the expectations Apple has raised about the smartwatch category. “If Apple succeeds, other smartwatch makers will benefit from the increased addressable market. If Apple fails to make a case, then the smartwatch category will remain a niche and all smartwatch makers will suffer.
“The smartwatch market is still undefined. We are at a time similar to the point when Apple launched the iPhone into the smartphone market. All kinds of companies, smartphone OEMs, start-ups, wristwatch makers, are trying to catch the eye of consumers.”
He says that Apple must ensure the Apple Watch’s signature features are not easy for competitors to implement on their smartwatch designs to maintain differentiation.
“By offering 12 variants of its smartwatch, Apple is hoping to cater to every fashion. But with two watch sizes, two watch colours and three versions, Apple must be careful to maintain the right mix of inventory to meet consumer demand.”
Shane Walker, director of IHS Technology, comments on the ResearchKit: “With 700-million iPhone users, ResearchKit has the potential to significantly increase participation in medical research while reducing costs in data collection. This is a significant addition to the medical researcher’s tool kit, and a potential enabler of heightened patient engagement.”
Dan Wagner, e-commerce veteran and founder and CEO of Powa Technologies, comments: “The launch of Apple Watch marks the first major combination of wearable technology with mobile payments, further demonstrating the company’s confidence in consumer readiness for mainstream mobile payments.
“Wearable tech has a strong synergy with mobile payments, and research has found that four in 10 would use wearables to make in-store payments. However, only 12,2% of smartphone users currently rate mobile payments as the main reason to invest in a wearable device, and it’s also clear smartwatches will need to be much more widely accepted and accessible among consumers before they make a significant impact on retail and brand strategy.”
