Hello Everyone,
I enjoyed the presentation yesterday where Apple showcased the new Apple
Watch, again.
I was planning on purchasing the watch when it is released in April, 2015
but, after reading the following cNET article, I may wait for the second
generation. I just don't know.
Anyway, enjoy the article at the bottom of which you may find its direct
URL.
Until Next Time,
Mark
Apple's $10,000 question: How to stop Apple Watch from becoming obsolete
Apple enters the high-end watch market with the 18-karat gold Apple Watch
Edition. But CEO Tim Cook stays mum about how to keep the smartwatch
relevant a year or two down the line.
by Shara Tibken
@sharatibken
March 10, 2015 5:00 AM PDT
Apple CEO Tim Cook reveals the 18-karat gold Apple Watch Edition will range
from $10,000 to $17,000. Tim Stevens/CNET
Apple expects some iPhone owners to shell out more than $10,000 for a
smartwatch. And it hopes they don't care if it becomes outdated in a year.
The Cupertino, Calif., electronics giant on Monday revealed pricing for the
three models of Apple Watch, which will be available April 24 in nine
countries. The device starts at $349 for the basic Apple Watch Sport version
and goes up to $17,000 for the premium Apple Watch Edition.
That huge price gap comes from the use of the materials in the watches --
18-karat gold for the high-end Edition versus aluminum for the Sport -- but
not for any of the actual features. iPhone owners won't be able to do any
more with the expensive gold number than with the entry-level model --
beyond showing off their ability to afford a wearable device that costs more
than some cars.
By pricing its smartwatch that high, Apple, one of the world's largest
makers of smartphones and tablets, is setting itself up as a luxury watch
seller. But the transition could be tricky. The computing world is moving
faster than ever before, as technology executives like to tell us, and
what's new one day may easily be outdated a few months later. Spending
$10,000 to $17,000 on a golden gadget that could become obsolete in a year
is a risky proposition, especially since we don't yet know if Apple will
have a trade-in program, how it will support older devices in the future and
whether any of the components in the device are replaceable.
"Although the watch's features are exceptional, almost all activities can be
done with an iPhone, rendering the watch a completely discretionary gadget,
highly dependable on disposable income, price and recent expenditures,"
noted Sarah Kahn, an IBISWorld technology analyst.
Apple declined to comment for this report beyond the comments made Monday by
CEO Tim Cook.
"Apple Watch is the most advanced timepiece ever created," he said during a
press event in San Francisco. "It's a revolutionary new way to connect with
others and a comprehensive health and fitness companion."
History has shown that buying the first generation of a new Apple product
often isn't the smartest move. Apple tends to update its products in short
order -- usually within a year and sometimes even earlier. And it
incorporates new features in each update that make the prior model less
attractive. Consider the bigger screens and Apple Pay mobile payments in the
iPhone 6 and 6 Plus, introduced in September 2014, the TouchID fingerprint
sensor for the iPhone 5S the year earlier, and the Siri digital voice
assistant for 2011's iPhone 4S.
And then there's Apple's fluidity with pricing. When Apple started selling
the first iPhone in June 2007, it offered an 8GB version for $599 and a 4GB
model for $499. But in September of that year, it discontinued the 4GB model
and slashed the price of the 8GB model by $200. After early iPhone buyers
complained, they got a $100 gift card to use at Apple retail or online
stores.
But they still paid a cost for being an early iPhone adopter.
It was the second-generation iPhone, the 3G, that really attracted consumers
in high numbers. Apple sold more units of the iPhone 3G in the first quarter
it was on the market (6.9 million) than it sold of the first-generation
device in its first five quarters combined (6.1 million), Apple reported in
April 2009. That's partly because it had more wireless carriers on board,
partly because the second generation was just a better device and partly
because the app store, then one year old, offered iPhone customers thousands
of apps that extended the functionality of the phone.
When you're spending more than $10,000 for a watch, you expect it to last.
Typically, high-end watches that retail at the levels of Apple Watch Edition
are worn for years. Some become heirlooms, passed down from generation to
generation. Old iPhones may be treasured, but more often than not, they
become a hunk of metal and glass you "store" in a drawer when you buy the
new model.
Junking a $200 phone or a $300 to $500 smartwatch is one thing. A $10,000
piece of gold is an entirely different matter (though the cash-for-gold
stores may be pleased).
Apple will likely will redesign the Apple Watch many times over the years,
making it thinner and lighter. But it may not be able to update the sensors,
processors, batteries or other hardware components in the device -- all
things that likely will improve with the future generations.
And what happens when your battery dies, as all batteries eventually do? The
videos and information posted on Apple's website about the watch don't say.
Apple also hasn't said anything about a possible trade-in program or other
way to make sure its first Apple Watch will be as relevant in five years.
There also comes a point when software updates no longer work on aging
devices or hinder old devices more than keep them up-to-date. (For instance,
whenever a new version of Apple's iOS mobile operating system hits the
market, devices more than a few years old tend to face battery issues and
other problems).
And then there are the apps, the programs that many believe truly make the
watch interesting.Will app developers make sure their new software remains
compatible with years-old devices?
"I'd love for Apple to float some kind of trade-in program where they would
swap the older electronics for newer electronics for a certain price," said
Patrick Moorhead, principal analyst at Moor Insights & Strategy. "That would
take that objection off the table."
Some people willing to spend $17,000 for a watch won't care if they have to
do the same thing the next year. They're in because they covet the newest
Apple products or because they're watch collectors. They may have enough
expendable income that $17,000 is just that -- expendable.
If you're one of the first people buying an Apple Watch, know this: What
you're really buying are bragging rights, not functionality. Now, you just
need to figure out if that's worth $17,000.
http://www.cnet.com/news/apples-10000-question-how-to-stop-apple-watch-from-
becoming-obsolete/?tag=nl.e404&s_cid=e404&ttag=e404&ftag=CAD1acfa04
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