As many as you know, I am not a true fan of the products that Apple offers. I have been using an iMac for approximately 5 years now and I do see some advantages with the technology and quality placed into their machines. There is some functionality that an iMac can bring to a task that a PC is not able to fully deliver.
On Monday, Apple unveiled their latest product which devotees will purchase in a heartbeat, the iWatch. The iWatch is an extension of the iPhone in that it has a lot of the same functionality and user interface, but instead of taking your phone out of your pocket, you can do it on your wrist.
The iWatch is not expected to have a large impact on Apple in terms of sales or margin. Before the iPad was unveiled, 30% of Apple users stated that they would be interested in purchasing such a product. When a comparable survey was done for the iWatch, only 7% of Apple users stated that they would buy one. Is it possible that Apple is ahead of the consumer again? Will the Apple brand be able to get consumers to believe that their product solves a problem?
In 2013, there were 1.2 million smartwatches bought across the world. The number is not large, especially relative to the number of smartphones in the world. Last year, 1.3 BILLION smartphones were shipped around the world.
The functionality of the iWatch is consistent with the functionality of smartwatches which are already on the market. Apple, however, will change the market because now people will know about smartwatches, their functionality, and the different possibilities on ones wrist. As with other things, like the smartphone for example, Apple will bring the technology to the masses.
What do you think about the iWatch? Are you willing to pay over $300 to avoid taking your iPhone out of your pocket?
Have an awesome week
Kevin MacDonald is the CEO of L6S Business Consulting Inc. L6S offers services in management consulting, Controller and CFO contracting, and lean management with either project work or teaching/mentoring of staff. Kevin holds his CMA accounting designation along with a Black Belt in Lean Six Sigma.
Kevin is active in the community by volunteering for different groups, his condo board and donates platelets at the Canadian Blood Services clinics on a bi-weekly basis.