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Apple Watch may move the needle on wearable tech

Apple Watch may move the needle on wearable tech

March 09, 2015 | 06:52 PM

Apple CEO Tim Cook speaks about the Apple Watch during an Apple event at the Flint Center in Cupertino, California, in this September 9, 2014 file photo. 

AFP/San Francisco

Apple is set to unveil its smartwatch on Monday that could catalyse the market for wearable technology with a strong emphasis on health and fitness.

Apple Watch is expected to be the star at a media event being held at the same San Francisco theatre where the California tech giant introduced the iPad.

Apple's chief executive Tim Cook has revealed little about the sophisticated wrist wear, but has said that he "can't live without it."

The company announced its plans for Apple Watch last year to much fanfare and has said it would begin shipping in April. It will mark Apple's first new product type since the iPad in 2010.

Apple enters a market that already has a number of players, ranging from South Korean giants Samsung and LG, to Japan's Sony and startups such as Pebble.

Motorola, acquired by Chinese giant Lenovo last year, also produces a smartwatch, and China's Huawei introduced its version at the Mobile World Congress in Barcelona this month.

'Cohesive value'

But analysts expect Apple to lift the market by integrating the watch with the iPhone and its software ecosystem, and its range of apps and sensors for health and fitness.

"How Apple creates a cohesive value proposition integrating hardware with software and services is as always the key," said Nick Spencer at ABI Research.

"The three main areas of wellness data and services, Apple Pay, along with creating an intelligent and differentiated relationship between the watch and the smartphone must be the foundations of the Apple Watch proposition."

Apple has indicated that the entry price would be $349 in the US, and that two different sizes would be available in three collections, including the "Apple Watch Edition," featuring 18-carat gold cases in yellow or rose, sapphire crystal and finely crafted bands and closures.

The watch is also expected to include map software that guides people to destinations with gentle "taps" on the wrist.

Fitness apps on the Apple Watch and its rivals could spell trouble for makers of fitness bands from companies like Jawbone, Fitbit and Nike.

Right balance

Jan Dawson at Jackdaw Research said Apple must find the right balance for the new device - giving people alerts and notifications when they need them without overwhelming them.

"One of the criticisms of some of the other watches out there is that notifications are something of an all-or-nothing phenomenon: either you get utterly bombarded with notifications or you get none, but it’s been tough to get granular control," Dawson says in a blog post.

"So it becomes all the more important that Apple get this right on the Watch. The ability to manage notifications and other activity on the Watch so that you only get notified for the things you really care about is a key value proposition."

Apple reportedly had to scale back health tracking features on the watch after some sensors didn't rise to the challenge.

Research firm Strategy Analytics predicts Apple will set fire to the market from the outset, projecting sales of 15.4mn units worldwide in 2015, to give Apple a 55% market share.

More conservative, ABI Research expects Apple to ship 13.77mn units, just under 50% of the market.

March 09, 2015 | 06:52 PM