More than two years after launching the Apple Watch, Apple Inc. has finally managed to replicate 1940s comic book technology, an advancement that analysts say should boost sales.
The Apple Watch Series 3, launched Tuesday alongside the highly anticipated iPhone X, features wireless LTE connectivity. This means that customers will be able to make phone calls or send text messages from the watch without needing to have an iPhone nearby, as was the case with previous models.
The ability to make calls with a wristwatch has captured the imagination of technology enthusiasts, at least since it featured prominently in Dick Tracy, the comic strip about a private detective who, beginning in 1946, used calls from his wrist to help take down the bad guys.
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“This has been our vision from the beginning,” said Jeff Williams, chief operating officer, at the launch event. “Now you can go for a run with just your watch and stay connected. It’s really nice to know that you can be reached when needed.”
True, Samsung Electronics Co Ltd has been selling smartwatches with mobile data connectivity since 2014, but the first devices were bulky and suffered from poor battery life because the data connection consumed more power. They also require a separate phone number.
Apple says its new Series 3, on the other hand, will have up to 18 hours of battery life and is just a fraction of a millimeter thicker than its previous Series 2. And it will have the same phone number as a phone’s iPhone. customer, which is always necessary.
Apple said all four major U.S. carriers would offer service for the watch, and AT&T Inc and T-Mobile US Inc both said it would cost $10 more per month.
Analysts generally believe new connectivity could boost sales, although there is little consensus on how much.
At $399 (roughly Rs. 25,540), the new watch is only slightly more expensive than the previous model, the $329 (roughly Rs. 21,000) Series 2, which introduced standalone GPS capability. That extra $70 gets you a lot more useful features, including the ability to stream music from Apple Music.
“The third time’s the charm,” said Bob O’Donnell of Techanalysis Research.
What might hold some consumers back is the recurring monthly fee, which would far outweigh the additional cost of the Series 3 over older watches over time, said Brian Blau, an Apple analyst at Gartner. “Yes, you have to pay for that extra data plan, but it looks like the carriers are going to at least make that relatively easy to do,” Blau said.
Apple doesn’t say how many Apple Watches it sells. Bernstein analyst Toni Sacconaghi estimates that Apple will sell 12 million watches in its 2017 fiscal year and between 14 and 15 million in fiscal 2018. Gene Munster of Loup Ventures predicted a much larger increase , to 26 million units in 2018.
Either way, Apple is putting new pressure on smartwatch rivals like Fitbit Inc and Garmin Ltd, which would struggle, from a technical and business standpoint, to match Apple’s wireless capabilities. Apple. Garmin and Fitbit did not immediately respond to requests for comment outside of normal business hours.
The watch will remain a failure in Apple’s sales, which amounted to $215 billion last year. But it could be part of a family of products that Apple loyalists can’t live without – all while making a 1940s schoolboy fantasy a reality for the masses.
© Thomson Reuters 2017
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