August 24th, US time is the fifth anniversary of TIm Cook as CEO of Apple. Over the past five years, under the leadership of Cook, Apple has launched a large-screen iPhone and smart watch Apple Watch; It has been pushed to the corporate market; it has also increased its operating income by a factor of four and its share price has risen by more than 100%, making it the world's largest market capitalization company.
But at the same time, Cook and Apple have also experienced many difficult tests. One of them is that Apple Watch has not received good market response. It makes the outside world question whether Apple's innovation ability is still there. The smartphone market has become the Red Sea, and the wearable device market is still on the blue ocean. Both Cook and Apple need to think about how the Apple Watch will be as popular as the iPhone series in the next five years.
Apple Watch pain points: price / function / application
According to TrendForce's research brand Takuya Industry Research Institute (TRI), the sales of Apple Watch in 2015 is expected to be around 12 million units, which is about three-eighths of the global smart watch sales.
â–² Worldwide shipments of Apple and non-Apple smart watches (Source: Takuya Industry Research Institute (TRI); 2015 / 11)
At first glance, this data is very beautiful, but it still has a gap from Apple's goal of 15 million set in early 2015. In addition, there is also a lot of room to catch up with the annual sales of iPhones on the billions. Therefore, it can be said that the first generation of Apple Watch is not ideal.
Consumer attitudes toward Apple Watch have caused the popularity of this smart watch to cool down – this is closely related to the three pain points that Apple Watch itself has:
First, Apple Watch is expensive, Apple Watch can't be independent of iPhone at present, which makes it only available in expensive accessories, consumers refuse to pay for it. Aware of this problem, Apple also cut the price of Apple Watch and launched a cheap strap, but the key to the pain point is still to improve the independence of Apple Watch.
Second, Apple Watch lacks the ability to directly hit consumer pain points. For example, Apple hopes to make the Apple Watch a healthy device, but the features are far from perfect. To this end, Apple is also actively applying for wearable device patents, hoping to obtain more accurate body test data for service users.
Third, the Apple Watch application software market is small and difficult to attract consumer interest. Unlike the iPhone and iPad, developers are not enthusiastic about Apple Watch, which requires Apple to actively “catch up†developers in the future to build a rich application ecosystem.
Top view: application service is the key to the development of smart watches
The situation of Apple Watch is the epitome of the current situation of the wearable device market. In recent years, although there are many topics on smart watches and smart bracelets, the market has not improved, and manufacturers are not able to profit from it. Too much attention to hardware development is a place for wearable device manufacturers to make mistakes.
According to Cai Zhuoyu, an analyst at Tuoba Industrial Research Institute (TRI), in terms of hardware costs, wearable devices, whether smart watches or smart bracelets, have very limited profits. In addition, most of the brand players in the market strategy, most of the emphasis on hardware specifications, rather than from functional applications, for consumers, how to cut their needs, is the key to winning.
Therefore, future application services are the key to the development of the wearable device market. Cai Zhuoyu suggested that smart watches should pick out two or three special applications, strengthen marketing and promotion, and let consumers find the value of products.
For Apple, after using brand influence to make consumers buy, they should dig deep into the application software market, let consumers be willing to use Apple Watch and fall in love with Apple Watch.
Only when the pain points of the product are discovered and improved, can the smart watch develop rapidly. Tuoba expects that global smartwatch shipments will reach 50 million in 2016, including 20 million Apple Watch shipments and 30 million other smart watch shipments.
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