Apple Watch ready to make debut

Industry trackers say Apple Watch will star at a media event on Monday being held at the same San Francisco theatre where the California-based technology giant introduced the iPad.

Tim Cook stands in front of a screen displaying apps available for the Apple Watch during a presentation in October. Robert Galbraith / Reuters

Apple’s keenly anticipated smartwatch is expected to debut today as the trendsetting firm sets out to make stylish wrist-worn computers must-have accessories.

Industry trackers say Apple Watch will star at a media event being held at the same San Francisco theatre where the California-based technology giant introduced the iPad.

Tim Cook, Apple's chief executive, has revealed little about the sophisticated wristwear, but has said that he "can't live without it".

The company announced its plans for Apple Watch last year to much fanfare and has said it would begin shipping in April.

It will mark Apple’s first new product type since the iPad in 2010.

Apple has said that the entry price would be US$349 in the United States, and that two different sizes would be available in three collections, including the Apple Watch Edition, featuring 18-carat gold cases in yellow or rose, sapphire crystal and finely crafted bands and closures.

The device will connect with the iPhone, and also have a range of apps and sensors, notably for health and fitness.

The watch is also expected to include map software that guides users to destinations with gentle vibrations, or “taps”, on the wrist.

Fitness apps on the Apple Watch and its rivals could spell trouble for makers of fitness bands from companies such as Jawbone, Fitbit and Nike.

“Apple is poised to once again show how computing platforms are won or lost on the one-two punch of eager consumers and hungry ecosystem partners,” said the Forrester Research analyst James McQuivey.

Apple reportedly had to scale back health-tracking features on the watch after some sensors did not rise to the challenges.

It remains unclear whether Apple, a latecomer to the wearables segment, would do for smartwatches what the iPod did for MP3 players and the iPad did for tablet computers.

Apple enters a segment crowded with companies ranging from South Korea’s Samsung and LG, to Japan’s Sony and start-ups such as Pebble.

Motorola, acquired last year by the Chinese company Lenovo, also produces a smartwatch, and China’s Huawei introduced its version at the Mobile World Congress in Barcelona last week.

Pebble, which burst on the scene with a crowdfunded smartwatch in 2012, this month broke the record on the Kickstarter platform with more than $16 million raised.

“The combined impact of the Apple wearable and the varied range of new smartwatches might just be the trigger that will start a boom in the market, and move wearables from being add-ons to a wholly independent consumer technology category,” said Nadeem Khanzadah, head of omnichannel retail at Jumbo Group.

The research firm Strategy Analytics also predicts Apple will set fire to the market from the outset, projecting sales of 15.4 million units worldwide in 2015, to give Apple a 55 per cent market share.

“The Apple Watch is the catalyst to ignite the global smartwatch market,” said the Strategy Analytics executive director Neil Mawston. “Apple’s famous brand, loyal fan base, deep retail presence and extensive apps ecosystem will ensure healthy uptake for its watch.”

Still, he said Apple may encounter a few glitches that need to be ironed out.

“Apple’s first-generation watch is not yet perfect,” Mr Mawston said. “Apple will need to upgrade tangibly its second-generation watch to stay ahead of competitors later this year.”

He noted that rival models are more attractive, have a longer battery life and offer more affordable prices.

But the Deutsche Bank analyst Sherri Scribner predicted an even bigger splash for the Apple Watch, with sales of 17.6 million units this year.

By 2018, Ms Scribner said, one of every four iPhone users will also have an Apple Watch, making the segment worth about $26 billion for the company.

Ms Scribner said the Apple Watch should be a catalyst to expand the market, with wrist-worn devices gradually becoming a complement to smartphones.

Others analysts say it is not yet clear if the smartwatch will become the must-have accessory for consumers, particularly if the pricing remains at current levels.

Roger Kay, an analyst at Endpoint Technologies Associates, said Apple’s loyal consumer base will deliver a certain number of sales but will not guarantee widespread adoption.

“There will be 10 million people who will buy it because it’s from Apple,” Mr Kay said. “But the larger question is whether this category really has legs.”

Jehas Habison, purchasing manager for Costless Electronics in the UAE believes that Apple’s watch will be a “slow burner”.

“It will be a better seller than other products because it has the Apple status attached to it … but people need to change the way they interact with the technology and that takes time. I can see Christmas being an important season for the watch, I think we may sell 300 to 400, which would be impressive,” said Mr Habison.

A key question is whether Apple can create the same kind of energy around a new product without its leader Steve Jobs, who died in 2011.

“Steve could distort reality and tell everyone it was the next big thing, and people would believe it,” said Mr Kay. “They’ve never done it without Steve. So this is the challenge for Tim Cook.”

Follow The National's Business section on Twitter