The sale of the smartwatch is critical who is amidst the slowing sales of its core product
In each device’s debut year, the tech giant has sold more Watches than the iPhones. However, the smart-watch hasn’t been able to eliminate the tag of “disappointment” from itself.
On Sunday, just two days before the tech giant’s quarter earnings –the smartwatch marked its first anniversary. The product’s fate is important for the tech titan at it’s the first product since iPad which test the innovative mind of the CEO Tim Cook at the time when the company’s core product is facing slowing sale.
Up till now, the sales figures are quite satisfactory. The Cupertino, Calif. firm didn’t tell the exact figure of the Watch sales but the analysts have estimated that around 12 million smartwatches were sold in the first year. If the estimates are true then the sales generated revenue of $6 billion –at an estimated price of $500 which is three times Fitbit Inc.’s –an activity tracker –annual revenue.
In comparison with the sales of the Watches, in its first year, the tech giant sold close to six million iPhones. According to the researcher IDC, last year, Apple’s Watch made up around 61% of smartwatch sales across the world.
Still, there are few people who dare to call the product, a “flop.” Co-founder of Union Square Ventures –a venture-capital firm, Fred Wilson declared that the device wouldn’t be a “homerun” like its successors –iPad, iPhone, and iPod –expressing that majority of people will pass the idea of wearing a computer on their wrists.
The smartwatch has few drawbacks too. It has underpowered processor due to which the watch’s functionality is slow. It doesn’t have Global Positioning System (GPS) and mobile connections which means that it has always had to be accompanied with iPhone simultaneously restricting its usefulness as an independent device. Furthermore, the battery ought to be charged daily.
But, the Watch still lack definite functions for the Apple Watch. It certain functions are quite well including mobile payments, notification, and activity tracking. However there is no function exclusively for Apple Watch. Every function which the Watch performs is what an iPhone or a less expensive activity tracker could do.
Few of the consumers also noted about the slow software of the device and the diurnal inconvenience of charging the device daily have made them shift to the other cheaper smartwatches.
Sources privy to the matter has said that Apple is working on fixing the apparent flaws of the Watch. The tech giant is actively involved in adding faster processor and cell-network connectivity to its next-gen smartwatch.
An Apple spokeswoman didn’t comment when asked about the apparent issues of the Watch.
J.P. Gownder, an analyst from Forrester Research expressed that the device isn’t useful. He wants the businesses to develop apps like the one created by Starwood Hotel & Resorts Worldwide Inc. which allow the users to receive a room assignment and unlock a door, in addition to checking in, without even dealing at the front desk.
Mr. Gownder said that the Apple Watch doesn’t offer a broader ally of services and added: “Apple needs to make it an indispensable thing.” Nevertheless, Apple has a large number of fans who use the product daily and are quite satisfied with it.
According to a research firm, Wristly, out of 1,150 tech giant’s smartwatch users around 93% has said that they are “satisfied” or “very satisfied” with the product.
Under the umbrella of the loyal customers, the Apple Watch will surely perform better.