The launch of the Apple Watch in September 2014 left everyone including consumers, business owners and industry analysts with many questions – Will consumers’ love towards technology persuade them to make the Apple Watch purchase? And, if yes then what type of consumer is most interested in this device? After the languid sales of smartwatch precursors, everyone wants to know the opportunity for Apple’s wrist-based wearable. And, for Apple too Smart Watch smashing success and embracement is very important. Here’re a few reasons why Apple needs its new smart watch to be a splendid success:
1. Apple holiday quarter revenue is too much depending on the iPhone
Apple’s revenue during the holiday quarter 0f 2014 may have flown 30%, but if we back out the iPhone from the race then sales actually tripped 7%. The Apple’s iPhone is amazing — but it’s the source of 68.6% of the revenue of Apple.
With iPad sales sinking and the iPod no longer even worthy of being in Apple’s quarterly summary data table, it’s time for something smashingly new to take the heft of the iPhone.
2. The Apple’s newbies are ripe for picking
Apart from Apple marking a record of 74.5 million iPhones sold, Apple is also making a record for maximum number of selling new tech products in the tech giant’s mobile platform. CEO Tim Cook boasted in one of his recent statements that – “We had the highest number of customers new to iPhone last quarter than in any prior launch. The current iPhone lineup experienced the highest Android switcher rate in any of the last three launches.”
A steep growth in number of people making their initial investments in Apple products is seen in holiday quarter of 2014. However, the long awaited move to acquaint with larger screens to keep up with the competition is predictably paying off by eradicating consumers’ doubts to going Apple. And, this makes them ripe to get other Apple products, but it’s not iPads or iPods. Mac sales have shown benefit, but Apple wants to get its innovator wings again and for that it is having high hopes from its smart watch.
3. Apple trying to earn the innovator crown back
History repeats, and it’s not a coincidence that the Mac reappeared shortly after the 2001 launch of the iPod. For making Apple’s desktops and laptops smashing again, the media player worked with Macs and PCs.
And, it’s expected for Apple Watch too. We all know that the purchase of an Apple Watch is a commitment to iOS. It’s always seen that wireless carriers make it actually easy to switch sides every two years, but people purchasing an Apple Watch is much more investing to the iPhone till its next upgrade cycle.
4. Showing Google how wearable computing is done
After the sluggish sales of Google Glass, it’s not a surprise to see Google back offing from Google Glass (GOOG). The search giant adjourned sales of its high-tech innovation Google Glass because they cost too much, were too spooky and weren’t stylish enough to entice consumers.
And, this has given opportunity to its enduring competitor Apple to make a squelch by showing Google how wearable computing can be classy and valuable. However, Cynics are saying that Apple’s rival smart watches have failed in past, but that hasn’t dissuaded Apple to go for smart watches because there’s always time to get it enhanced.
5. Smart watch can be a new winner for Apple
In holiday season of 2014, only two product lines posting improving sales- iPhones and Macs. Smartphone that Apple launched nearly eight years back and its bequest computer business that’s even older. However, the iPad has been dwindling for a year, joining the iPod in race that’s been shrinking in adoption and popularity for years. Apple TV has emerged as a new talk among Apple lovers, but it’s not ample enough to value being singled out as a unique category. It’s endured together with the iPod that shown a universal overall decline. So, Apple’s Smart watch can help Apple in winning the crown of innovator again.
So far, antiphon to the Apple Watch has fluctuated between skepticism to enthusiasm, and research and analytics shows that the story of Apple Watch adoption is indeed two-sided. Let’s take a look on consumer behavior that reveals an immediate market opportunity for Apple’s Smart Watch as well as psychological barriers to adoption:
However, between the benefits and challenges of Apple Watch, adoption has appeared as a third reality, which amalgamates the two. Industry analysts are expecting that Apple Watch acceptance will advance, with early adopters, encouraged by anticipation.
Historically, it has been seen that the Apple has been one of the finest in the technology industries and has shown marvelous results in terms of educating consumers about new arrivals, just as it did with the Mac, iPod, iPad and iPhone. And, during the Apple Watch debut, real-time consumer reaction revealed overwhelmingly promising responses to the Apple’s new launch. Therefore, it’s expected that Apple will drive the smartwatch market and, once again, earn a new crown of bespoke user experiences.