This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
“One more thing,” said Apple CEO Tim Cook, invoking the classic line by Steve Jobs typically used before unveiling a major innovation.
This time, not only is the smartwatch a major milestone for Apple, it also marks the first introduction of a new product category under Cook at the helm.
No doubt, Apple Watch is impressive and sets the bar higher for the industry. Among the key features include the use of a ‘digital crown’ to minimize screen blockage with fingers, as well as and an integration with mobile payments system.
Do consumers really want a smartwatch? No less, one that costs as much and potentially more than their iPhone, which is needed for it to be fully functional?
At this point, there are some lingering doubts Apple can pull off the same revolution it did with smartphones (iPhone), music players (iPod) and tablets (iPad).
In most parts of Asia, at least, handset costs to consumers are typically cushioned by telco subsidies. Can we expect to see the same for the Apple Watch, which currently has an indicative price of at least US$350?
Apple fans will probably have no hesitation getting one, but the rest of the crowd is unlikely to jump on the bandwagon until they see a more compelling price point, or a stronger reason to justify their spend – such as a more independent smartwatch with 3G/4G connectivity.