Tag Archives: Apple Watch

The Apple Watch Is Just Another Example of Apple’s “Smart” Marketing Funnel

By now, you have probably heard at least some of the details regarding Apple’s new smartwatch.  I’ll mention a few of the highlights below.

1. Its battery life is 18 hours.

In comparison to some Android smartwatches, that’s actually an improvement.  However, when it comes to some notable smartwatches, including Pebble, that’s actually unremarkable.  There are some smartwatches on the market that can go as long as 7 DAYS between charges; Apple’s only comes in at 3/4 DAY, which means that you will have to charge every night at least.  Keep in mind too that that 18-hour mark is likely its maximum; the actual time will vary depending on your activity and will likely be less than the stated 18 hours.

As you would expect, Apple touted the features of the Watch in an attempt to mitigate any disappointment that may have been felt by the fact that the stated time of the battery life was just 18 hours.  Tim Cook stated that the “Apple Watch is the most advanced time piece ever created.”

2. The starting pricing tiers for the three types (Sport, Watch, and “Edition”) are $349, $549, and $10,000(!)

I think many equally wondered what the top-tier pricing would be for the “Edition” version, and I think some were amazed that Apple would go that high, thinking Apple would sell at a lower price than $10,000.  Of course, Apple is trying to market it as a luxury jewelry item, a major reason why they’ve promoted it in two Vogue magazines (U.S. and China), including a recent 12-page ad in the U.S. version.  Combined with the materials used to construct the watches (especially the Edition version, which has 18-karat gold) and a high profit margin, that’s why Apple is charging the amount that it is.

It still remains to be seen if the luxury market will open up its arms and wallets to the Apple Watch, being that this is new territory for Apple, never mind the fact the smartwatch industry has not taken off as many experts thought it would.

This September 9, 2014 New Yorker article, “Does Anyone Want a Smartwatch?“, shows the issues surrounding smartwatch makers to this point, and I think Apple will come across similar issues, especially when it comes to whether people actually feel they NEED one.  Yes, there will be devoted Apple fans who will want to get one just as they did the iPhone and iPad, but as that article mentions, those items replaced something before them and did it better.  The question is, “What is the smartwatch replacing?”

Some people don’t wear watches of any type, while others wear a $9.99-$29.99 timepiece that they like, think it goes well with their attire, and tells time (what a concept! :-).  These timepieces can easily last 5-10 years or longer (I’ve had watches work even beyond 10 years, and that can be without changing the cell battery; if I change the cell battery, I’ve had some watches work 15-20 years without an issue).

This brings me to my point about Apple’s “smart” marketing funnel once again being at play with its Apple Watch, and why getting 5-10 years or beyond of use with this current Apple Watch may be a period of time that never occurs due to the way Apple and virtually all tech companies operate.

If you’ve followed along with Apple products in recent history, you know that an iPhone or iPad model is released every year (give or take a few months).  It will often have the latest specs (or close to it) at the time it is released, then it quickly becomes outdated, just as virtually all technology does.  Apple will then release the next updated model with updated specs.  You’ve seen this with its smartphone: iPhone 5, iPhone 5c & 5s, iPhone 6 & 6 Plus; you’ve seen this with its tablet: iPad 4, iPad Air, iPad Air 2; you’ve seen this with its mini tablet: iPad mini, iPad mini 2, iPad mini 3.

In the not-too-distant past, many Apple fans were determined to get every updated version, just because every model seemed so new and innovative.  However, as time has gone on, I know of many Apple users who don’t get every version of the iPhone, not seeing the need to update because the newest model wasn’t that much different from the one they were currently using.  In addition, people were more willing to upgrade when their 2-year contracts run out, thus leading to them often skipping one model upgrade, at least.

The iPad has been similar, being that the technology upgrades weren’t that much different from the previous version, especially over the past few years.  Plus, in the iPad’s case, the full-size tablet has started to witness declining sales due to the smaller-sized tablet (iPad Mini line) and, most recently, the phablet-sized smartphone (iPhone 6 Plus).

Still, even with Apple users skipping some updates, they still were willing to upgrade their products, and in many cases, they had to.  Some of the newest iOS operating updates and/or current apps don’t work or work as well with older hardware versions (that have older operating systems or memory limitations- those who own an iPad 2 like me know this, especially when it comes to updating to iOS 8, which can take up over 25% of a 16GB iPad 2).  Thus, it was necessary to upgrade your hardware in order to continue receiving the benefits and conveniences of that technology.  This is true of Apple (as it is pretty much of every technology company).

Apple has also integrated this into its smartwatch as well, and that could be a potential deterrent for those who expect their timepieces to last a long time (i.e. 10 years or more).

On Apple’s part, it’s smart marketing because, this will encourage (and even force) users to upgrade their timepieces in order to continue gaining the benefits and convenience from the Apple Watch.  Apps that are used on the Apple Watch will likely need an updated operating system (either the most current or close to it) in order to continue functioning properly and giving the Apple Watch its greatest value.  Those who want to keep their Apple Watch version for a long period of time (say, 5+ years or more) likely won’t be able to upgrade the iOS operating system after a while either due to technology incompatibilities, lack of storage space, or some other reason (much like the issues with the iPad 2 and even with the iPad 3 and iPad 4).

Thus, I suspect that after two to three years (maybe five years, max), the current Apple Watch won’t be able to handle the iOS updates and/or the updated apps needed to give the Apple Watch its greatest functionality.  Thus, users will be faced with one of two choices- either purchase the newest (or at least newer) version of the Apple Watch or stop using the Apple Watch altogether.  For diehard Apple fans who like the watch and have grown accustomed to its features and conveniences, that may be nearly impossible to do.

Thus, Apple has employed its marketing funnel again in order to get Apple Watch users to become paying customers AND remain paying customers (and that doesn’t even include utilizing iTunes and Apple Pay, two more ways to keep these customers as RECURRING paying customers).  That is really what you want to see in a successful business- the ability to get AND KEEP paying customers in your funnel- that’s how you can make residual income long term, which is why Apple is doing so well in terms of revenues and stock price, as well as why it has so much cash on hand.

Therefore, if you really want to learn about marketing strategy and employ that into your own business and your own marketing methods, pay close attention to Apple’s product development and launch strategies – you can learn a great deal of how to set up your own product development cycles and marketing strategies in order to get customers to pay you and to keep paying you over a long period of time, while boosting and promoting your brand in the process.

 

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Why Apple Should Delay The Apple Watch- Updated- Better, But Still A Wait and See

I’m writing this updated post to my Apple Watch post yesterday due to the fact that there are reportedly two main updates to the Apple Watch prior to the event on Monday that were just revealed today:

1. The Apple Watch will reportedly have better battery life than was reported before, supposedly up to 5 hours with fairly moderate app use (via this 9to5Mac article).

2. The Apple Watch WILL be able to monitor heart rate (beats per minute) via its Heart Rate Glance (via the same 9to5Mac article).

Both of these bode well for Apple Watch’s immediate success, particularly #2.  That is because this should help to make the Apple Watch more appealing to millennials and for them to see it as being valuable enough and useful enough to where they’ll want to buy it sooner rather than later.

Thus, I do think the prospects for Apple Watch’s immediate sales are better with these developments and previously unannounced capabilities, though I still think there is enough uncertainty there in regards to battery life (how much do specific apps drain the battery, for instance), limited apps, limited capabilities, lack of general enthusiasm in the smartwatch industry, and phone users who are not Apple users (Android, Windows, etc.) that it will likely cause the Apple Watch to not quite have the impact some are predicting when it comes to the smartwatch industry.

Will the Apple Watch do enough to move the smartwatch industry and the wearables industry in general? Over time, and with better advancements and capabilities, it’s possible, but I still don’t think this first rendition will move the industry as much as some are expecting.  As I said yesterday, there will be Apple fans who will go out and “have to have it” right away either because they want to be part of the “in” crowd or because they want to be one of the first who had the very first Apple Watch, but I still think that expectations might be out-of-whack, even with these two positive developments for the Apple Watch.

There are still questions on how popular wearables, particularly smartwatches, will become overall- it still comes down to how useful these devices will be, especially in regards to the relatively high cost (especially with the Apple Watch).  The health monitoring will especially be the key, particularly when it comes to the Apple Watch (as I said yesterday, don’t expect the Apple Watch to replace your iPhone- Apple can’t afford that, so that’s not happening, certainly not in the foreseeable future)- if that health monitoring feature is useful enough, that may be the biggest key for the Apple Watch and for the smartwatch industry in general to take off and become as part of mainstream society as the smartphone and tablet (or is that “phablet”?) has become.

Why Apple Should Delay The Apple Watch

As you probably know, Apple is planning to unveil its Apple Watch to the world this coming Monday, March 9.  This will be the final version that will ship in April.  Via the Wall Street Journal, at an event earlier this year, Apple CEO Tim Cook said, “… one of the biggest surprises people are going to have when they start using it is the breadth of what it will do.”

The Breadth of What The Apple Watch Can Do? Or What It Can’t Do?

However, there have been several developments since that statement that seem to indicate that the Apple Watch is underwhelming tech experts and the public at large, thus hinting that the public may not be so amazed at what it can do, but MORE AMAZED at what it CAN’T do.

1. Apple Watch will not have advanced tracking of health signs (via PCMag article), including ability to measure blood pressure, heart activity, or stress levels.

2. Apple Watch apps will be extremely limited, especially in the early going, because Apple wants a successful launch and wants to preserve battery life of the device (via Business Insider article).

3. Speaking of battery life, even with the limited apps and their capabilities, the battery life of the Apple Watch may only provide up to 3.5 hours of app usage between charges, and just 2.5 hours if you are constantly checking sports scores, stock quotes, or social media accounts (via PCMag article).

All of those limitations, and the starting price for the Apple Watch will reportedly be $349?! Why am I not surprised that most are less than impressed or are concerned about the longevity of the Apple Watch?

Here’s what the Apple Watch will reportedly be able to do when it’s released in April:

1. Provides quick, easy-to-read notifications from your iPhone.

2. Enables you to make mcommerce purchases right from your Apple Watch.

3. Tracks your daily activity (such as how many steps you take, but as mentioned, no advanced health metrics, including blood pressure).

Who Is The Apple Watch For?

Most Apple experts and tech insiders are even confused over what market Apple is going after and what problem it will solve with the Apple Watch (via this Business Insider article).

This is probably why there was great debate within Apple itself to even create and release a smartwatch, as it does not seem everyone is in agreement with CEO Tim Cook, Head of Design Jony Ive, and Apple executive Bob Mansfield on the success and longevity of the Apple Watch.

As that last Business Insider article mentioned, this is an important product launch for Apple due to the fact that it’s the first new product line for Apple since the iPad five years ago, as well as the first new product line since the death of co-founder and former CEO Steve Jobs.

Thus, it makes sense for Apple to proceed cautiously in terms of what the Apple Watch can do right off the bat.  However, the fact that Cook mentioned that “people will be amazed by the breadth of what it can do” seems to be at odds with that cautious approach, being that it implies that the Apple Watch will impress in terms of its features.  That is especially true when you consider that other smartwatches have those advanced health tracking capabilities the Apple Watch will lack at a much smaller price point.

This is all the more reason why I really think Apple should have held back the launch of the Apple Watch.  Of course, that’s likely not going to happen, being that the event is just four days away, but it will be amazing if the Apple Watch can really be the hit it is expected to be at this stage.

Let’s look at why the Apple Watch COULD be a hit at this point:

1. Apple made what I consider a smart marketing move (but with a caveat I mention below) to have it appear in Vogue in an effort to have it appeal to affluents (via this Recode article).  This was after it appeared on two notable models, Liu Wen and Candace Swanepoel, in both Vogue China and Self Magazine, respectively.

2. It is the first wearable product created and marketed by Apple, which is synonymous with tech.

3. It is an Apple product.

While the third reason is a cited reason by many Apple Watch supporters who think it will be a hit, it may take more than Apple’s noted reputation to ensure its smartwatch will be an actual hit and stand out from the increasingly crowded smartwatch market.

Let’s look at the many concerns of why the Apple Watch may not be a hit in the smartwatch industry, and why it might not even have that long of a life:

1. I mentioned that it was a smart move by Apple to have its watch appear in Vogue in an effort to get affluents interested in it and see it as a “must-have” item.  However, this also shows what might be Apple Watch’s greatest weakness: What is Apple Watch’s target market?

Personally, it seems to me that Apple is trying to target everyone who is the owner of an iPhone and get him/her to buy the Apple Watch.  This approach, what seems to be the “let’s throw everything against the wall and see what sticks” marketing approach, rarely ever works to great success.  Even a company like Apple has to have a solid marketing approach in order for its products to be successful, and, truthfully, the marketing for this product seems haphazard and all-over-the-place.

What was originally being marketed as a “product that will amaze people on the breadth of what it can do” (i.e. the mainstream crowd) and that will have great health tracking abilities (i.e. the millennial crowd, especially), now is being marketed in a very prestigious magazine in two different countries to appeal to the affluents.

Granted, there are three different versions of this watch: Classic, Sport, and Luxury, but I have serious questions on the “need” for this product.  As I mentioned in my post, “The Lack Of Perceived Value: The Missing Link in Smartwatches” what will a smartwatch do that a smartphone can’t do? Why would the mainstream public want this item when the smartwatch does nothing more (and far less, actually) than a smartphone can do?

This is the major reason why the smartwatch industry hasn’t taken off as many experts thought it would, and based on the lack of features and the higher cost of the Apple Watch, I can’t see where Apple’s entry is going to have more success either.

Yes, some of the diehard Apple fans will probably buy it because it’s Apple.  Yes, some affluents may have to get the Luxury version to show that they have the “latest and greatest device” from Apple.

But, it’s not likely that the Apple Watch will be deemed a “success” or a “mover” in the smartwatch industry if it’s just some members of those two groups, as it doesn’t seem there are a great majority in either category that are convinced they must have that Apple Watch.

2. Most of the mainstream public is not fond of the price point (especially when an iPhone is anything but inexpensive, costing $300+ to $400+ to start), nor are convinced they need it (especially without the advanced tracking features, a key importance to millennials in particular).

3. As for the affluents, I think many are not convinced that Apple is elite or chic enough when it comes to the watch industry for them to just buy the Apple Watch immediately when it is up for purchase.  This is why, though, Apple was smart to introduce the Watch to the affluent group by advertising in Vogue in both the United States and China, to at least give themselves the chance to gain more of this market.

Still, the lack of groundbreaking features, the high price point, and the uncertainty of how affluents will perceive the Apple Watch all indicate that the Watch will likely fall below expectations rather than meet or exceed them.

Apple’s History Suggests You May Be Better Off Waiting To Buy The Apple Watch

Plus, a few things about Apple’s history that indicate why waiting may be a good idea if you are considering purchasing the Apple Watch:

1. The Apple Watch will likely never be able to handle phone calls on its own (something I mentioned in my “Missing Link in Smartwatches” post); to do so would take away from iPhone sales, something Apple can’t afford, as it’s the one product line that is really doing well for them. The iPad line has fallen for four consecutive quarters now, and while Macs are holding their own and even growing slightly of late, it’s not expected that that trend will continue, especially since Macs can’t double as tablets due to the lack of touchscreens.

2. Speaking of lack of touchscreens, Apple has a tendency to never have its products multi-task.  In other words, Apple will not (or rarely) add another feature to a product that will hurt another product line.  This is a major reason why Apple was against increasing the size of the iPhone for so long; to do so would hurt the iPad line, and trends suggest that part of the reason why large tablet sales are falling off is because of the presence of phablets, something Apple only got into with its recent iPhone 6 Plus model, a few years after other smartphone manufacturers (including Samsung, HTC, Google, and others) had released phablets.  Having their Mac laptops have touchscreens and become hybrids like Windows’ PCs would have also hurt iPad sales, a major reason (in my opinion) that they were (and are still against) having their Mac laptops become hybrids.

(And, Windows hybrids are becoming more plentiful on the market because there IS a demand for them- this again shows that Apple has a tendency to keep their product lines separate from each other when it comes to features so they don’t eat into the respective revenue lines from each product line, even when there is a demand for such a “hybrid” product).

3. Based on #2, if the Apple Watch stays around long enough, chances are strong that the Apple Watch will only be able to do the advanced health tracking features in a future Apple Watch model.  It seems unlikely that they would add the necessary software and apps for it to be able to track those features on this specific model, as the hardware doesn’t seem able to withstand many apps running at the same time.  Thus, it would seem likely that Apple would create a newer, more robust Apple Watch within the next six to twelve months (just as they do with their iPhones and iPads) that is more energy-efficient and more capable of tracking advanced health statistics.  Thus, that means the consumer would need to shell out ANOTHER $350+ to get the Apple Watch he/she thought he/she would be getting with THIS Apple Watch version.

It remains to be seen if I’m right on #3, but the history of Apple product launches, releases, and cycles would suggest that that is the path Apple is going to take with the Apple Watch.  Thus, getting the Apple Watch now when it is largely devoid of the main selling points the public was waiting for would only be for those who want to say, “I was one of the first few to own the very first Apple Watch.”  In other words, it would be a status symbol, which would be fine and enough for some affluents to purchase, but probably not enough for other affluents.  The same would hold true for the mainstream population: The most diehard Apple fans that camp out for hours and days at a time might be willing to go for it (though, as I’ve said before, the Apple Watch would not do what the iPhone does, so maybe they won’t even be willing to camp out for the Apple Watch), but the vast majority would probably not be convinced to shell out enough money that would purchase the next iPhone model with a 2-year agreement on a smartwatch that really can’t match other smartwatches in the industry when it comes to advanced health tracking features or even apps.

Why I Would Have Waited To Release The Apple Watch And Why I Think This Model Will Underwhelm And Even Disappoint Analysts And The Public

Thus, if I were Apple, I would have delayed this product launch until later this year or even early 2016 to ensure that the watch had long battery life, had the ability to measure and track advanced health metrics (one of the main selling features that was either mentioned or strongly rumored to have), and had a more defined target market in terms of what problems or issues it would solve.

Yes, it’s a common practice to deliver a product that is short on features in order to gain traction in a marketplace and to get feedback to make improvements for future releases (this happens often in the digital software industry), but those added features are usually offered for free or at reduced cost to customers who help to iron out those “bugs” and provide that feedback for added features that are missing.  As mentioned above, based on Apple’s history, it’s more likely Apple will present an upgraded Apple Watch within six to twelve months from now with those features (provided the Apple Watch gains enough traction in the marketplace to achieve longevity to necessitate a more advanced version in the first place), features that were either mentioned or strongly hinted at when the Apple Watch was first presented and promoted.  In essence, a person would have to purchase the Apple Watch twice if he/she purchases the Watch now in order to get the Watch he/she thought he/she would be getting based on the publicity surrounding the product when it was first announced.

In addition, I am not convinced about the clarity of Apple Watch’s target market. While the Apple brand name carries a lot of weight and has a lot of fanfare and publicity behind it, when the product itself is relatively expensive to much of the population and doesn’t provide a defined solution or benefit to most of the population, the odds are against it that it will be considered a “hit” or a “mover” in the smartwatch industry.

It’s possible Apple could create a smartwatch that could do that, but from what I have heard, read, and seen, this Apple Watch is likely NOT that revolutionary smartwatch experts and the public expect to see from a noted tech company like Apple.  That is why I think this Apple Watch will likely underwhelm and “surprise” us by the breadth of what it CANNOT do rather than by what it can do- thus, I think it may “surprise” some on how much it underachieves compared to Apple’s previous product launches, including the iPhone and the iPad.

Feel free to leave your thoughts on Apple, its upcoming Apple Watch,  and if you’re eagerly anticipating it or not below.