After all the hype and talk about an Apple Inc. (AAPL) smartwatch being unveiled by Tim Cook and company, consumers are finally getting what they want. Or are they?
While some observers were thrilled with the early details released by Apple, others are wondering if the smartwatch truly has what it takes to dominate this growing segment.
Big Question – Do You Have an iPhone?
It may not be a surprise, but you will need an iPhone to take full advantage of the Apple watch.
Think of it this way: The smartwatch will act as an extension of your iPhone, making it easier to access when it comes time to read a text or see who is calling you. Instead of digging through your purse or pocket, you can simply look at your wrist.
Will it be a problem that the watch is only compatible with the iPhone 5, 5s, 5c, and 6?
Too Expensive for the Everyday Consumer
The Apple Watch is priced at the top of the market, with a starting retail price of $349.
This is a big gamble for AAPL, especially when you consider the fact that a Pebble smartwatch can be purchased for $150. Samsung’s (SSNLF) Galaxy Gear was brought to market at $299.
Apple has never been one to price its devices lower than the competition. It feels that AAPL products are superior, and Apple will never shy away from a premium price tag. Of course, this doesn’t mean that consumers have to buy.
Why the Wait?
The Apple watch is not going to hit the market until early 2015, which means consumers must continue to wait before they can slap one of these bad boys on their wrist.
This is a problem for a couple of reasons. First off, there is always the chance that the hype could die down by then. Secondly, it gives the competition, such as Samsung, more time to figure things out on their end.
Only time will tell if the Apple Watch exceeds expectations, but there are definite concerns that could make or break the device.
At the time of publication, Bibey had no positions in the securities mentioned.
