How Long Can Apple Shine?

Soon to be released in April Apple Watch already makes skeptics and short short-sellers salivate about its potential flop and low sales. According to Google, the company has terminated its Google Glass project after a short run and no more units will be sold. This opens up an opportunity for Apple to maneuver and innovate. With wearable technology to hit almost $13 billion U.S. dollars by 2018 Apple’s Watch should perfectly fit into this category and try to dominate the market. The WSJournal reports that Apple is already producing 5-6 million units for the initial release and with the price tag around $350 for the base model and up to $5,000 for the gold Watch Edition, sales could easily top $2 billion U.S. dollars.

wearable-device-market-value-

Wearable Device Market Value

Many analysts are skeptical about the Apple Watch because the first version won’t have any cool features such as options to measure blood pressure, heart activity and stress levels. However, all these options and other new features could be a good upgrade for newer models down the line (e.g. Apple Watch 2 and 3). Any other software and hardware designs could be used in future models based on popularity and demand. To draw parallels, we should go back to 2007 when Steve Jobs introduced first Apple iPhone. There was no need or specific demand for a new phone, but Apple created demand and “iPhone need to have” wave around its product. The wave of current low expectations for the Apple Watch sales works in Apple’s favor, because it is better to overdeliver when expected to underachieve.

With every new product that Apple introduces the strategy is to connect new users to its eco system. Most of the features of the Apple Watch can be fully explored only when connected to an iPhone. The growths of iPhone sales has been pretty impressive and the introduction of the new Watch should further increase its demand.

forecast-of-apple-users-in-the-us-

Forecast of Apple Users in the USA

The recent news that Apple has several hundred employees working on an electric car project code-named “Titan” created a buzz in the market. The possibility for an iCar that could challenge not only Tesla but the entire automobile industry is a good sign that Apple is on track to become America’s first $1 trillion company by 2016.

Questions:

Would you buy an Apple Watch?

How Apple impacts Web 3.0?

Links to the articles:

http://www.wired.com/2015/02/apple-watch-doesnt-anything-special-huge/

http://www.wsj.com/articles/apples-titan-car-project-to-challenge-tesla-1423868072

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6 thoughts on “How Long Can Apple Shine?

  1. Apple continues to innovate and simplify all of it’s devices creating a seamless experience. While personally I am not interested in the Apple Watch, I do think there will be a market for this device. Perhaps eventually this replace our beloved iPhones? Apple is already getting a lot of publicity regarding the launch of the apple watch, they are offering a new product to the market, which helps diversify their portfolio and they continue to be a market leader by innovating new products. I think all of this will lead to significant demand and result in competitors trying to keep up. It will be interesting to see how Apple uses marketing and messaging to create the need desire for the consumer.

  2. I’m not sure if I would buy an Apple Watch, but I believe Apple will be a leader in the Web 3.0 movement. They already have the technology to connect different platforms together, so I can see them connecting appliances in the future. If Apple can develop the iCar, this would be a huge step for the improvement of the Web.

  3. I am much more likely to purchase an iCar than I would be to buy an Apple Watch. Much like Google Glass, I think that the Apple Watch, should have been removed from their product line. That is not to say that I believe that Apple won’t sell any. Rather, as Apple has proven to consistently create demand where there is none, surely they will be successful with the Apple Watch. I personally won’t purchase one, because I seldom look at the one I wear on my wrist on a daily basis. I believe that like many others, I rely on my iPhone for finding out what time it is. I can’t imagine what additional benefits that the Apple Watch could offer.

  4. Although I am a fan of Microsoft, but I believe Apple still can be strong for a while. The wearable device marketing is growing quickly, even Moto360 is sold out at the first day it launch. Apple is always good at marketing, so the sales of Apple watch would definitely be good. However, I think Apple is not as innovative as it was. Tim Cook is a good CEO, but he is making the company become less outstanding. When the market wants bigger iPhone, iPhone 6+ came out. When the market wants smaller iPad, iPad mini came out. It is said that Apple would soon launch a larger iPad called iPad called iPad pro to compete with Microsoft Surface Pro. This is exactly what Samsung is doing is the last few years. I do believe Apple would remain a market leader in the next few years as it is such a strong brand. But if Apple can not create something really innovative, I’m not sure whether it would become the next NOKIA or Blackberry in less than a decade. When I am saying really innovative, I mean something like HoloLens, not a next generation iPhone with bigger screen, better camera or a nicer UI.

  5. Personally, I believe Apple has its own stable customers. I am not a technology fan but I am sure that there is one huge segment of customers that love Apple for its design and the additional value that adds to Apple other than just the function it provides. by revealing consumer insights, we realize that some people use Mac or iPhone because that feel that its the safest and credible thing to have. Using another system, Mac PCs are less likely to encounter virus infection. Apple provides good quality and good design devices that even make someone fulfill their self esteem phase of needs. It is not only about making brilliant things, its is a value that lies in its customers as can been seen in other brands such as Starbucks. Although it has Dunkin Donuts as a strong competitor and has some problems in its marketing strategies, there is a value that lies in the brand.

  6. The concept and now reality of the Apple watch is so strange in my opinion. I do not see the benefits of it and although it will more than likely be a success, but it will be due to Apple fanboys that buy anything and everything that the company makes regardless of its usefulness, innovations go out the window when it comes to their products at this juncture. The device does not do anything that one’s phone does not really. I cannot imagine anyone trying to type or read on that tiny screen, nor can I picture anyone watching a video or talking to someone on it, so what benefit does it bring other than time, which all of our current watches and past watches have been able to do just fine?

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