A closer look at Apple’s smartwatch

The amounts that some of Apple’s smartwatch models will sell for will easily stagger one’s imagination, except you are Bill Gates, Warren Buffet, or Aliko Dangote, who have so much money that they can buy almost anything they want. How much will these watches cost? Various designs in different prices will be marketed, but thank […]

The amounts that some of Apple’s smartwatch models will sell for will easily stagger one’s imagination, except you are Bill Gates, Warren Buffet, or Aliko Dangote, who have so much money that they can buy almost anything they want.
How much will these watches cost? Various designs in different prices will be marketed, but thank goodness, all designs will be made to be water-resistant. The products will begin at $349 apiece for the Apple Watch Sport with an aluminum casing. The version with stainless steel casing will go for $549 to $599, depending on the dimensions of the face. The high-end Apple Watch Edition starts at $10,000; with the luxury brand (18-Karat gold casing) going for as high as $17,000. The latter is easily one of the most expensive products that Apple has ever sold. If you reside in one of the nine countries where the watches will be sold on 24 April 2015, you can actually start placing your order as early as April 10. Great that we at least have products that will cost under $350 – this provides some sliding-scale pricing, sort of; giving many the chance to find their niche in the price spectrum.
Associated with the pricing of the watches is the issue of motive – that is, the motive for the smartwatch. We can certainly identify the motive of fashion – as suggested by a variety of models and straps, including two models with (real) gold-casing. There can’t be a better way to make a fashion statement than to wear a watch that costs you $20,000, an amount that will actually be less than what the watches will sell for when they get to their destinations (in certain developing countries).
There is also the motive of convenience, as the watches, being also computers, give you a large amount of information that saves you from the inconvenience of reaching into your pocket or bag to get your phone! You are also provided with new ways to communicate through taps and vibrations. The “coolness” factor of the products should not be under-estimated.
Will Apple’s smartwatch have the same economic effect on Apple as did iPhone 6S? Not a chance! Yes, the high-end watches will have takers, from the pool of the world’s super rich. However, this pool is very small. It was not the superrich that bought iPhone 6S en mass and caused the phenomenal capitalization of Apple a few months ago. It was the middle class – particularly, the middle class in China. These folks may have $1000 to shell out for an iPhone, but probably not $20,000 for a watch. The low end watches will also have takers – folks who just want to ride on the bandwagon – at a much lower cost.
You are reminded that watches can get pretty cheap in deed – undermining any motives that could tempt you to get a very expensive watch. My uncle (my mom’s junior brother) visited me in New York about five years ago, during which time we went to the local Wal-Mart store in my neighborhood and bought two identical gold-plated Casio watches, one each, that cost approximately $10. The watch looks really nice, and is still on my wrist as I write this article – giving me the correct time to the last minute, five years on. It works so well and it isn’t broken. (I have relatively more expensive watches, but the idea is that watches are not as compelling a consumer product as a smartphone – so folks might be more willing to skimp on getting them.) Moreover, some people, including myself, can sometimes be very vain: watches are less conspicuous on your wrist compared to your shoes, the suit on your body, or the car you drive. (The watch can even get covered up by your long-sleeve shirt, unless of course you intentionally fold your shirt so people can see your watch!)
My point in the foregoing is that if Apple expects to make a killing with its watch, it will be very disappointed. There just wouldn’t be the volume, especially for the high-end models.
The business focus of Apple’s smartwatch comes mostly from the apps that third-party companies are developing for the device. I discussed this in last week’s article. I have learned that over 1000 apps have already been developed.
A potentially sore point with Apple’s smartwatch is the relatively short battery life. Tech experts are not buying Tim Cook’s assertion that the 18-hour battery life of the new device is decent; they also say that this battery life is not better than the competitors’. Apple’s estimate of 18 hours may only apply to very light use of the watch, as more extensive use, for example, to send and receive messages, could give much less than 18 hours. Some estimate a realistic battery life of 10 to 12 hours. Thus, you can’t even wear the watch overnight, to track your sleep, or as a gently-vibrating alarm clock. Apple’s smartwatch seems to be work in progress.
The bottom line Apple’s smartwatch is work in progress!