The Apple Watch May Be the Only Smartwatch the World Will Care About
Sean Udall issued a bullish outlook for the Apple Watch in June 2014.
Editor's Note: This alert was sent to TechStrat subscribers on June 27, 2014.
Apple (AAPL) -- The stock is feeling like it's spent enough time in recent trading purgatory.
On a soothsaying note, I've said that the iWatch will likely be the only smartwatch the world will care about.
The more I look at the tech product landscape, the more I think this will prove to be another prescient AAPL prediction. I've seen all the Android smartwatches so far, and simply put, there's nothing there.
The Motorola prototype smartwatch is excellent, but I'm not sure we will ever see it in mass production. For some reason, Motorola made the best Android products bar none, but they never sold hugely. And I think there is one primary reason: The price point. When they first came out they are and were priced at the premium AAPL iPhone price point, and that just doesn't work. When they are finally lowered $100 to $200, the sales stack up. But again, the margins there are just so-so after the price cut.
So what's gonna happen with Smartwatches outside of AAPL? They will all at first carry a staunch price point. The best Android products will be nice and work quite well. But they will lack the cache at that high a price.
Then just how much better, cooler, cleaner, and integrated will the iWatch be? I'd say by a pretty huge margin as usual similar to the iPhone 5S vs. the best Android phones at the time. The 5S simply blew out core innovation again. And since then, Samsung (and others) has been scrambling to add the newest iPhone features, like TouchID and 64Bit.
Bottom line, and echoing my thoughts from almost a year ago, the medical monitoring angle is likely the key to AAPL's iWatch success should it occur in a huge way. But I would not overlook the product's cache, look, feel, and performance aspects. Heck, if the product looks good enough and adds a big enough feature set, it might sell strongly regardless of all the fitness tie-ins.
This may seem a weird comparison but the HP (HPQ) 12Cs and 17Bs financial calculators still sell well and for a premium price point, even in a world of spreadsheet and apps.
Because they are the best made, work superbly, and are great to use.
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