Entering text into the input field will update the search result below

3 Reasons Why Apple Watch Will Sell

Mar. 13, 2015 2:38 PM ETApple Inc. (AAPL)
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Summary

  • The price of Apple watch is comparable to similar products in the market and most of its clients have purchasing power.
  • A chunk of its 700 million iPhone clients would be willing to buy the Apple Watch.
  • Buying the smartwatch could make sense if it has useful apps especially those touching on health and fitness.

You would think that Apple (AAPL) watch is costly. Furthermore, you may think to have a digital touch is childish for the lack of a better word and maybe too creepy. This matter is complicated by a battery life of only eighteen hours making the watch too weak due to the need for daily recharges.

However, there is high chance that people will line up in huge masses to buy the Apple Watch when it hits the stores next month. Many of the people that complained that the iPad was too expensive in 2010 have it in their pockets.

Below are a number of reasons why many will end up purchasing this gadget at the end of the day.

1. The price tag on the Apple Watch is fair

Apple does not sell its products cheaply. The market is okay with this pricing. In this light, it is safe to say that $350, as the entry price is quite reasonable.

There has been a lot of talk about the premium rose gold that will be going at $17,000. This is in a class of its own. The entry models pricing of between $350 and $400 is comparable to similar models launched by rivals in the market about two years ago. The two, one being Toq was going for $350 and the other, Galaxy Gear was going for $300. Apple enthusiasts are also used to paying more for their devices be it an iPad, Mac or an iPhone and do not see that as a big deal.

2. 700 million iPhones already sold

Apple has sold over 700 million iPhones for the years that the device has been in the market. Out of this number, a few of these devices go back to the market as trade-ins. Many of the users keep their old models or just dispose them off. Nevertheless, hundreds of millions of them are still in use as of today. Many more are also being sold. For example, during the holiday quarter, Apple sold about 74.5 million devices.

Android smart devices are also sold in their millions. However, they lack universal compatibility due to regular changes in their operating systems. Apple has been consistent with iOS and held millions within its territory.

Thus, if it sold its Apple Watch to 1% percent of its iPhone clients, it could sell millions of pieces. This is expected next month.

3. Developers have not yet gone deep

Developers have not given much support to smartwatches that are on the market since most of them have been a flop. Those that are still around do not have an engagement potential as traditional phones and tablet apps have in addition to offering a different audience.

If Apple were able to change this perspective, many more people would start using it. Then, people would be trying to solve the challenges that would come from migrating from a mobile phone to a smaller smartwatch screen especially from a monetization point of view as they did during PC to mobile migration. If developers get behind the hit product, people's perception of smartwatch market could change dramatically.

The value proposition could also be altered by inflow of several useful app, especially those related to health. CNBC's Jim Cramer also provided exciting ideas of how Apple Watch could benefit the health sector if medical professionals supported the idea.

He observed that it was the era of personalized medicine, which required instant feedback without scheduling an appointment with a doctor. He further told the Mad Money that the Apple Watch could be used to measure key data that it could then send to a service that could flag the doctor if it detected something wrong.

The device has created a strong reputation in health a fitness world. According to Jim, it could have an even more ambitious future where it could monitor everything and costs get paid for by corporate wellness plans and insurance premiums.

This industry estimated to worth $ 19 trillion could eliminate the internet.

This technology is touted as the one that would end the dominance of World Wide Web on the internet. It could also make investors very rich. According to The Economist, this could be seriously transformative. It is good to jump into the party before it is too late and grab the marvelous stock.

Analyst's Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You