Last week, concerns that the Apple (AAPL, Financial) Watch will not attract many people due to its homogeneity were allayed. As the long-awaited Apple Watch surprisingly came in a range of three different collections, two case sizes and several different bands, it became apparent that the time of personalized technology has just begun. Since Apple Watch is a device with a screen, Apple allows customers to personalize the product even more through software customization. The stripped-down aluminum case Apple Watch Sport collection starts at $349, the flagship stainless steel Apple Watch ranges from $549 to $1,000, and the top-end 18-carat gold Apple Watch Edition models can be purchased from $10,000 to $17,000, depending on the band. It is the last collection that signals that Apple is trying to shift more towards being a luxury brand.
New Apple strategy
No wonder though; it is a logical step as competition heats up every day. Especially in China, more and more new technology companies are pursuing a strategy of "copy quickly and sell cheap" so the only smart measure Apple can take is to continue building its premium brand. The fact that Apple executives are trying to profile the company as a fashionable, technology-based luxury brand is evidenced by the recent big marketing push in high-end magazines like the New Yorker or U.S. Vogue. In past years, when the watch was still only a rumor to the outside world, Apple hired several experienced professionals from the fashion industry. The first one of them was Paul Deneve, a former CEO of Yves Saint Laurent, who was soon followed by Angela Ahrendts, a former CEO of Burberry, and Musa Tariq, Nike’s former head of social media. Deneve, Ahrends and Tariq were undoubtedly influential in guiding the development of the deluxe watch, but so were more long-established Apple executives led by Apple design chief Sir Jonathan Ive. Clive Grinyer, a friend and former colleague of the 48-year-old British designer, recently told the New Yorker that Jon has always wanted to do luxury.
Apple is not just for the rich
On the other hand, Apple products have always been affordable to a wide spectrum of society. Your hairdresser and the CEO of your company probably carry identical iPhones in their pockets. Apple has never tried to reach the level of exclusivity as Vertu for instance, which sells its phones from $6000. Rather, Apple has focused on selling state-of-the-art devices at a fair price, which all people love. However, many Apple buyers seek exclusivity and would have gladly paid twice the tag price, or more, for what they considered the best device in its class. Now, for the first time, such customers have the chance to own an Apple product that average folks can’t afford.
What can we expect from Apple?
Regardless of whether or not is Apple going to become a luxury fashion technology brand, we can expect Apple Watch to positively impact margins. And also maybe with the new executives from the fashion industry, we might be surprised in the near future by another Apple accessory like smart glasses or an Apple handbag. Gone are the days when we carried technology only in our bags or pockets –Â the new age of wearables has just begun.
