Apple Inc. (AAPL, Financial) launched the Watch on Friday April 24, 2015, without much frenzy across the world after much anticipation and discussions had done the rounds in the wearable technology industry. There has been much speculation, not only about the product itself but also how Apple fans will receive it. One must consider that the android watches have not made much profit, especially since the wearable technology industry is still nascent. Apple being known as a company which has strong engineering, design and technology base, in whichever gadgets they bring out, a lot of fans have been eagerly waiting for the Watch. Whether it is a mobile phone or computers, Apple has often entered the race late but left its competitors far behind within a short span of time. Now with the Apple Watch, other companies like Google Inc. (GOOG, Financial), Samsung Electronics Co Ltd (SSNLF, Financial), Sony Corp (SNE, Financial) and LG Electronics Inc. (LG, Financial) that have released their own smartwatches, will be eagerly keeping track whether Apple has again cracked the success code.
The marketing of exclusivity
Apple is one place where they believe in being the best – as is projected to the shareholders and consumers. The company under the then-leadership of Steve Jobs would try to go for innovation with a focus on perfection. Quality of its products has been a top priority and Apple has priced its products accordingly – their motto being, if you want the best, you have to pay for it. But more than the pricing, Apple products seem to exude confidence of being better, trendier and much more advanced than their counterparts. Marketing exclusivity has been a long-standing strategy of the company, and this launch proves it again.
The first rule of creating the air of exclusivity is by a restrained supply. Controlling the number of products being distributed so that the demand is far greater than the supply leads to more anticipation and a further increase in demands. It is like a club membership, the more exclusive the club, the fewer the members and the more the desperation to be part of the elite clique. Hence, the soft launch of Apple Watch in only boutique shops across the world –Â including The Corner in Berlin, Colette in Paris, Maxfield in Los Angeles and Dover Street Market in Tokyo and London –Â and not even in its own stores.
Soft launch to spike interest
Although the timepiece had a soft launch on Friday sans the usual fanfare, the watch has been on display in Apple stores since April 10 for pre-order. The smartwatch reached some of the customers on Friday, but delays of a couple of months have been reported because of a high demand. After taking over the leadership from Steve Jobs, this will be Chief Executive Officer Tim Cook's first product, and he seems to be getting the marketing bang on.
Cook’s choice of launch at boutiques seems to suggest that this wearable tech is a matter of fashion and class, not just another gadget. Moreover the pricing too suggests that it is for the high and mighty – among the 38 variations, U.S. prices range from $349 for the Sport version to $10,000 and more for the gold edition, with the customized, diamond-studded Lux Watch Omni costing $114,995. This show of grandeur somehow makes consumers forget that it is a redundant piece of jewellery, a timepiece with an expiry date. Smartwatches are like any other gadgets, and Apple Inc. will soon come out with its own upgraded and better version of it. Then, what do you do with this older, bulkier model?
A long way to go
The Apple Watch is the first of its kind to attract such worldwide demand even before its release. The gadget has already attracted almost 2 million in pre-orders, with few market watchers setting forward an estimate of 9 to 30 million sales in the first year. At present the iOS supports around 3000 apps and with every upgrade, this number too is estimated to rise. For investors it is good news because the popularity and demand will only increase and though a quiet launch, the product has generated much noise in the industry. It is now time to see whether the momentum keeps rising and whether the competition can do it better. Going by Apple Inc.’s track record, the company keeps comfortably in the lead, even in the wearable tech space.
