How Apple Can Enhance Its Watch And Increase Gross sales
Crunch Community Contributor
Kelli Richards is the CEO of The All Entry Group.
Apple isn’t releasing actual gross sales numbers, however some professional digging has led many to consider that gross sales of the Apple Watch haven’t reached expectations since its launch in spring 2015. The corporate’s annual submitting prompt it bought $1.7 billion value in fiscal 2015, however examine that with the iPhone, which bought $32.2 billion value within the fourth quarter alone. That’s an enormous discrepancy for a corporation that’s used to seeing strains across the block for brand spanking new product releases.
I spent 12 years at Apple — most of my company profession, actually. Throughout my tenure, I launched and drove the music and leisure verticals and, as a pure aspect impact, turned intimately immersed in Apple merchandise and processes.
With that information, I’ve a private precept for all new launches: Wait about six months earlier than buying the newest gadget (notably in a brand new product class), because it takes about that lengthy for Apple to work out all of the kinks. Often, the elevated performance is nicely well worth the wait.
But even past the six-month level, I haven’t but bought an Apple Watch myself. And with rumors swarming round concerning the Apple Watch 2.zero, the precept bears repeating: Maintain off six months earlier than buying.
After spending a lot of my profession targeted on Apple, I possess each an insider’s and an outsider’s view of what’s occurring with the watch, and there are a number of issues I’d like to see developed (or at the least thought-about). Listed here are a couple of areas through which future iterations of the Apple Watch might be improved to assist attain (and increase) projected gross sales.
Trend: The present Apple Watch is modern and clean in contrast with different smartwatches, however whilst a tech system, it might push the type envelope additional. Trend business executives now at Apple, together with these from manufacturers similar to Yves Saint Laurent and Burberry, have tried to determine Apple as a life-style model by upping its intercourse attraction. The corporate is even partnering with dressmaker Hermès.
Though Apple has been profitable in these ventures for probably the most half, the unique types born out of those collaborations are nonetheless too costly for many consumers. Everybody needs to have the ability to customise her watchbands, not simply these with deep pockets.
Apple’s subsequent step, then, must be partnering with extra cheap manufacturers like Goal to extend customizability whereas reducing the watch’s worth. By doing so, Apple would optimize its product by interesting to extra of the plenty.
Again when the iPod Nano got here out, for instance, Apple not solely created a brand new area out there, but in addition launched the product in sweet colours that appealed to younger youngsters in its focused demographic. Likewise, by providing an easier, cheaper path to band customization, out of the blue the pool of potential Apple Watch clients expands.
Independence: What individuals need most is to not have to hold all their units with them. And for the Apple Watch, its reliance on an iPhone is perhaps its largest flaw. Proper now, individuals nonetheless have to hold their telephones due to the Bluetooth connectivity that permits the watch’s performance. With out the telephone, its makes use of are restricted.
Because it stands, the Apple Watch is not more than an iPhone accent, fairly than its personal gadget. However sooner or later, the watch, unbiased of another Apple product, will permit for seamless integration right into a consumer’s private life. Think about going for a run and having GPS settled in your wrist with out having to hold your telephone, or sitting at an airport and listening to airline notifications ping as flight delays occur.
Though this sort of function is probably too far off for the Apple Watch 2.zero, it’s nonetheless one thing to think about shifting ahead as tech just like the watch improves. Just like the shift away from desktop computer systems, the Apple Watch might dominate the wearable area within the transfer away from cellular.
Well being: On a extra sensible degree, many individuals are involved in wearables due to the potential well being advantages they supply.
As extra People attempt to handle their very own well being, apps that monitor all sides of wellness develop in reputation. Most Apple merchandise have relied on third-get together app builders to create this type of worth, but when Apple could lead on and drive extra of the innovation and well being metric evaluation, it will give the model yet one more aggressive benefit over different wearable applied sciences.
Apps that make blood sugar testing simpler (with out pores and skin pricks) or determine coronary heart assault signs would improve the stakes for a number of corporations, similar to Fitbit. Apple has a chance to be the chief in apps that tackle actual healthcare issues for actual individuals in actual time.
On the subject of ready for know-how to mature, I’m in good firm. Steve Jobs famously waited years to buy home equipment akin to a washer and dryer for his house as a result of he needed the right fashions that might remedy his wants and be extremely useful in addition to aesthetically pleasing. The identical is true for me — and, as gross sales present, apparently for a lot of others — with regards to the Apple Watch.
I hope to see Apple implement a number of the methods famous above because the Watch evolves over time. In my expertise, these three approaches would shortly appeal to clients who’re ready to see what the Apple Watch will turn out to be and the way the wearables area will progress.