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.
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.
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.
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