The much-anticipated product of the year for Apple Inc. (AAPL) fans is finally here. However, this time, the company has not been as forthcoming as usual and simply sent out invitations for an event on Mar 9. The event has been called “Spring Forward” which means resetting watches for daylight savings time, indicating quite clearly at the launch of Apple Watch.
Apple will also be live-streaming the event, expected to begin at 10 am PDT, per reports. Though nothing much about Apple Watch has been revealed by the company, it is expected that the launch date will be announced during the event. Notably, the event seems in line with the iPhone maker’s previously-announced plan to start shipping the watch in April.
What to Expect?
One of the main questions is regarding the product’s battery life which is rumored to be within 2.5 to 4 hours. This, if true, would be a major let down for the smartwatch. However, the company is reportedly working on the issue and expects to cross the battery life of Google (GOOGL) Android watches (which is over 24 hours) before the products are shipped in April.
Further, Apple fans are keen on what the watch could deliver on the application front and set itself apart from other smartwatches in the market. Features such as Apple Pay and Siri support are likely to be the major highlights. Additionally, Apple Watch doubles up as a fitness device and can track heartbeat, count calories and can also be used as an activity meter. Apart from these, Apple is expected to integrate its premium music service — Beats — with the new watch. According to reports, Apple is expected to launch a Beats-powered subscription service this year, which is likely to be part of the smartwatch.
Another highlight would be the aesthetics of Apple Watch. Being a wearable device, the look of the product will be something buyers would consider, especially since it targets the high-end luxury market. Given the fact that Apple has roped in executives from the likes of TAG Heuer, Burberry and Yves Saint Laurent to develop the look of the device, we believe Apple Watch is likely to be one of the first smart designer watches.
Will Apple Watch Drill a Hole in Your Pocket?
The answer is yes! Considering the fact that Apple Watch will look like a designer watch, work like an iPhone and keep running like any other automatic watch, it most certainly would come with a hefty price tag. The initial price for the Sports version of the watch is expected to be around $350, according to the reports. However, the higher-end Watch Edition, which features an 18-karat gold casing, is rumored to cost as much as $5,000.
Further, reports suggest, the customized Apple Watch may cost $75,000. With such pricing speculation, Apple Watch is surely set out to be one of the costliest products that the company has ever sold, much higher than the base price of Apple's most expensive, 6-core $3,999 Mac Pro desktop.
Going Forward
The wearable market is getting spicier with major tech players like Samsung, Motorola, Sony and LG Electronics showing significant interest in developing new gadgets. Fossil (FOSL) and Intel Corp. (INTC) are also collaborating to develop wearable technology.
Apple on its part is set to ship 20 million units of Apple Watch in the first year, according to reports, making it the most successful smartwatch ever. Reportedly, the company is targeting an initial order of 5 to 6 million units of the three Apple Watch models and expects to ramp up production to over one million units per month in its fiscal second quarter.
According to CCS Insight, Apple Watch will play an instrumental role in shaping the wearable device market. The research firm expects that global sales of wearable devices will accelerate in 2015, soaring 158% year over year to 75 million units. However, smartwatches will primarily drive the growth, contributing 44% of total sales by 2018. Hence, we believe that the nascent smartwatch market with a few well-established players presents a good growth opportunity for Apple. Further, its loyal customer base is a major competitive advantage.
Currently, Apple has a Zacks Rank #2 (Buy).
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