Apple Watch's 10th birthday: Timed perfectly for another tech disruption

Rivals have chipped away at brand's success but premium device still holds more than 20 per cent of market

Apple chief executive Tim Cook introduces the first Apple Watch on September 9, 2014. The device has gone on to dominate the smartwatch market. EPA

Look closely at a typical Apple user and there's a good chance they are rocking a triumvirate of devices – an iPhone, AirPods and an Apple Watch.

The last one sparked another pivotal moment in technology and watch history. This innovation is characteristic of Apple's disruptive nature, reminiscent of how its iPod, iPhone and iPad disrupted MP3 players, smartphones and tablets, respectively.

Two things may be overlooked or missed when it comes to the Apple Watch. One is that Apple's digital timepiece is the first hardware it developed without the stewardship of Steve Jobs, the legendary Apple co-founder and former chief executive who died in 2011.

So, the next time you glance at your Apple Watch, remember you're not just checking the time – you're also carrying a piece of tech history on your wrist.

The device is also a "tremendous" yet "often forgotten success", a vital cog in Apple's key services unit, said Thomas Husson, vice president and principal analyst at US research company Forrester.

"For many years, pundits have been criticising Apple because it was not able to launch a new product category and a new business model that would replace the iPhone’s cash cow," he told The National. "Putting the fast-growing success of its service business aside, the reality is that Apple has been successful at creating a new product category with the Apple Watch."

Apple, known for refining available tech before releasing it amid much hype, unveiled the very first Apple Watch on September 9, 2014. It was arguably one of the most anticipated editions of the company's signature "one more thing" segments.

You can't blame it for stealing the spotlight from the iPhone 6. Chief executive Tim Cook proudly wore it on stage, fist raised, seemingly saying it's time – pun intended – to upend another product category.

The original Apple Watch was released on April 24, 2015. But its announcement 10 years ago set off another classic Apple disruption, revolutionising communication while also allowing users to track health metrics at any time in more innovative, engaging ways.

Great timing

The Apple Watch is far from the first of its kind. But things were much different before.

The first timepiece to be considered "smart" was the Pulsar, launched by Hamilton Watch Company in 1972. The gold-wrapped prototype donned an LED display and retailed for a whopping $2,100 – nearly $16,000 in today's money.

Japan's Seiko entered the fray in 1983, launching a handful of watches deemed smart. Most notable were the T001, a TV watch that was featured in the James Bond film Octopussy, and the Data 2000, which uses an external keyboard. The RC-1000 arrived in 1984 and was the first watch to connect to a computer, including the Apple II.

The 1990s brought further innovation, starting with the Timex Datalink, co-developed with Microsoft and used in Nasa space missions. It was the first watch that could download data from a computer wirelessly.

In 1999, Samsung Electronics released the SPH-WP10, the first watch capable of making calls. The South Korean company soon ceased production of smartwatches, only to jump back into the sector in the 2010s to become not just the world's biggest mobile phone manufacturer, but also Apple's greatest rival.

The new millennium provided the base for the smartwatches we know today, with the likes of IBM, Microsoft, Fossil and Fitbit in the 2000s, followed by Pebble, Garmin, Sony, everything Android and the return of Samsung.

Sprinkled in between were fitness trackers and screenless bands such as Jawbone, which provided lighter and more affordable options. The trouble is you had to check your smartphone to see your stats.

The 2014 launch of the original Apple Watch seemed to merged all these aspects. Again, Apple brought its "cool" factor, towing the entire industry farther into the mainstream despite joining the game late on.

Apple's rock-solid ecosystem was also cemented by the integration of key Apple technology, such as the Digital Crown and access to Siri, in addition to being able to perform tasks including reading and replying to emails and messages.

"If you take a step back, it took [Apple] only a couple of years to become the leader of a market they did not even compete in," Mr Husson said. "Indeed, as always, Apple did not pioneer the smartwatch market but, like for the iPhone, they boosted the entire category."

When the Apple Watch was launched, it was viewed as something of a luxury accessory – think the really expensive Hermes editions – before becoming more of a fitness and sport accessory. It has now transformed into a health device.

"The core strategy over the past few years has been to work with an ecosystem of brands to install regular usage of the Watch in daily consumer lifestyle. By adding more and more sensors over the years, the Watch is Apple’s Trojan horse in the health industry," Mr Husson said.

More than just bling on your wrist

As always, what happens behind Apple's high-tech doors is tightly guarded. But Wired reported in 2022 that former Adobe executive Kevin Lynch had been hired in 2013 to steer the development of the delayed gadget, under orders from Apple design guru Jony Ive.

The move appeared to have the result Apple wanted. Mr Ive wrote in 2014 that the Apple Watch "blurs the boundary between physical object and user interface".

Apple added more upgrades to its Watch in the following decade, from a heart rate sensor, to an ECG, as well as atrial fibrillation and blood oxygen sensors. The company also added fall detection and exercise coaching. The rugged, meant-for-the-outdoors Ultra versions were also launched later.

But Apple has a disclaimer that states the Watch is not a medical device and that any health metrics it measures should only be used for reference.

"As the market is moving towards premiumisation, Apple Watches are gaining more popularity among consumers due to their focus on safety and health," Anshika Jain, a senior analyst at Counterpoint Research, told The National.

One intriguing aspect of the Apple Watch is its exclusive compatibility with iPhones. You can't get the Watch up and running without one. On the other hand, AirPods can be connected to non-Apple gadgets, but you'll miss out on cool features such as spatial audio.

By keeping the Watch tethered to Apple's ecosystem, the company aims to protect your health data and keep it in-house. And yet it's too simplistic to say the Apple Watch was made just for the iPhone.

The Apple Watch is a sleek gadget that might catch the eye of even non-iPhone users, but that's just Apple's marketing at work – if you want one, you'll end up buying more of their products.

"Over the years, Apple has been able to envision and create a tightly knit ecosystem of products and services like no other brand has been able to. Owning the entire stack from chips to retail, Apple has been able to strongly control the consumer experience," Ms Jain said.

That is one strategy that has pushed Apple ahead in the smartwatch sector. It does not provide sales figures for its Watch, but industry estimates show it's comfortably ahead of its rivals.

As of the first quarter of 2024, the Apple Watch commands a 21.3 per cent market share globally, more than double that of second-placed Indian brand Fire-Boltt's 10.1 per cent, data from ABI Research shows. China's Huawei, India's Noise and Samsung round out the top five.

The Apple Watch's market share is believed to have peaked in 2020, as it accounted for more than half – 51.4 per cent – of the sector, according to industry estimates. And while it has since declined, the device maintains a sizeable lead over the rest of the field.

A resurgence is expected, with a growing iPhone user base, better data-driven health insights, the expected integration of Apple Intelligence and more flexible financing options, Ms Jain said. These factors make it "appropriate for every age group", she added.

And if that's not enough, consider that in the early 2020s, Apple started to sell more watches in volume than the entire Swiss industry. That made the tech giant a "clear leader" in the premium smartwatch market, generating massive revenue, Mr Husson said.

"It is fair to estimate that the Apple Watch probably generated about $15 billion in 2023 alone," he added. "Fast-forward 10 years later, this is not bad for a new business, isn’t it?"

One more thing. Today, Apple will unveil its new iPhones – is it a coincidence that the company picked September 9 for its special event this year, after all the speculation? If Apple releases what we hope will be called the Apple Watch X, then it is – again – perfect timing.