Monday, March 09, 2015

With some reservations, Apple Watch likely to be a success.

What can we make of the new Apple Watch?  Many investment analysts have no clue whether people will want the Apple watch.  And in truth, neither does Apple.  The truth is that Apple is trying to diversify their business operations because almost all of their revenue comes from sales of the iPhone.  And while the iPhone has done spectacularly well, it is risky for a business operations to be so dependent upon one source of income (just as it is perhaps dangerous to be dependent upon only one source of income for an individual).  For that reason, I think that there are quite a number of reasons why the Apple Watch will be successful.

  • Apple Watch is likely to be successful due to the inherent vision of industrial designer, Johnny Ives.   Ives knows that Apple consumers like products that are eloquent, simple, and beautiful.
  • People mocked the iPhone when it was first announced, but guess what?  It was super successful. People are similarly mocking the Apple Watch.
  • People like to tear down Apple precisely because they have been enormously successful and have been able to connect very well with their audience.  They should be revered, not reviled.  After all, unlike Tesla, Apple is not demanding subsidies for their Apple Watch business!
  • The watch market has been getting a bit boring lately.  Why not add a little competition by adding a remarkably eloquent and beautiful product to the mix?  Makes sense to us.
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