Apple’s Watch is going to be the “iPhone moment” for the wrist wearable industry. Apple with its premium iPhone offering already commands significant share of smartphone segment forming a strong foundation of installed base of premium Apple users.

  • Excitement about Apple Watch right could be said is more on novelty proposition attracting early adopters and loyal fan base but the offering has decent potential to maximize the overall value propositions leveraging its strong developer base
  • Well implemented Enterprise, Health & Communications applications within the Apple Watch will be the key to justify the “need” for a smart wrist watch
  • Apple’s strategy to stimulate developers to integrate core Apple services and features such as Siri, HealthKit, HomeKit, Continuity, TouchID, ApplePay and more across all its devices and into Apple Watch is the biggest differentiation for Apple compared to the rest of the industry smartwatches with fragmented integration of services and apps
  • This horizontal services across Apple portfolio will help the user (especially for complete Apple user) experience a truly seamless connected experience
  • What Apple Watch has done right is ‘rediscovering’ the segment in “Apple way”: strong UX, UI, S/W foundation like iPhone & iPad with loads of premium luxury.
  • Thus, unlike androidwear smartwatches, Apple Watch cannot be seen as a “me too” offering rather is bundling huge aspirational value with highly promising functional value which is yet to be seen in any competitor offerings
  • The higher aspirational value of Apple Watch in future will actually  drive iPhone sales and would be a dealmaker to enter the Apple ecosystem for Android or Windows user

Its time to step back and pay close attention on how Apple first lays foundation for any product segment it enters and the upcoming WWDC should provide a glimpse of how it will further penetrate or strengthen its hold in a particular segment.

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About Author

Neil is a sought-after frequently-quoted Industry Analyst with a wide spectrum of rich multifunctional experience. He is a knowledgeable, adept, and accomplished strategist. In the last 11 years he has offered expert strategic advice that has been highly regarded across different industries especially in telecom. Prior to Counterpoint, Neil worked at Strategy Analytics as a Senior Analyst (Telecom). Neil also had an opportunity to work with Philips Electronics in multiple roles. He is also an IEEE Certified Wireless Professional with a Master of Science (Telecommunications & Business) from the University of Maryland, College Park, USA.