{"id":3404,"date":"2017-02-02T17:25:35","date_gmt":"2017-02-02T22:25:35","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/apple-watch-a-new-innovation-stream-or-the-lack-of-it\/"},"modified":"2017-02-02T17:25:35","modified_gmt":"2017-02-02T22:25:35","slug":"apple-watch-a-new-innovation-stream-or-the-lack-of-it","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/apple-watch-a-new-innovation-stream-or-the-lack-of-it\/","title":{"rendered":"Apple Watch \u2013 a new innovation stream or the lack of it?"},"content":{"rendered":"<p>Apple, a company started\u00a0by the revolutionary Steve Jobs, is a common household name. Enter an (possibly affluent) American home today and you will see a toddler watching a cartoon\u00a0on iPad, a teenager listening to music on iTunes, a grandparent browsing channels on AppleTV and a parent most likely completing a work email on their Macbook. Such is the power and penetration that Apple has gained over the past two decades with its cutting-edge products and massive advertising.<\/p>\n<p>Although Apple has succeeded in delighting customers and sustaining the loyal customer base even after Steve Jobs passed away, many critics believe Apple is struggling to keep up with the speed of innovation. Apple Watch was announced by CEO Tim Cook in late 2014 and was released in the market by April 2015. The product was initially well-received with applause from the audience. It claimed to be \u201ca precise timepiece, a new intimate way to communicate from your wrist, and a comprehensive health and fitness device\u201d\u00a0<strong>[1]<\/strong>.<\/p>\n<p><iframe loading=\"lazy\" title=\"Apple Watch Unveiled by CEO Tim Cook\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/U5oJcg3-6aQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>With this product, Apple entered both the fashion\/luxury accessory and health\/fitness segment; however, over time, the product has struggled to attract and retain consumers.<\/p>\n<p><strong><u>Value Creation:<\/u><\/strong><\/p>\n<p>Apple\u2019s loyal customers find tremendous value in buying more Apple products which are automatically integrated with the Apple ecosystem. Apple Watch makes it easier for iPhone users to complete basic tasks like making calls, reading emails and address Siri without having to check their phones. The newer version is also water-resistant helping people to stay connected even when they are out for a beach swim. There\u2019s more. Apple watch also lets you keep track of your fitness through daily reminders, movement tracker and calorie counter. With its sleek look, it is often considered a fashion accessory. Many Apple fans replaced their analog and expensive watches with Apple Watch instantly.<\/p>\n<p><strong><u>Value Capture and what Apple Watch is not:<\/u><\/strong><\/p>\n<p>Apple Watch could be many things to customers but at a price point of $250 &#8211; $350\u00a0<strong>[2]<\/strong>, it\u2019s an expensive feature. Customers complain that the product is complementary to an iPhone but only performs limited functions questioning whether it\u2019s even worth spending so much given you can do all these things and more with your iPhone. Only half\/one day battery life makes things worse. Consumers also quickly realized that other products e.g. FitBit can perform much more fitness functionalities at a lower price point than Apple Watch.\u00a0According to Wristly\u2019s research, quoted in Fortune, \u201cForty-five percent of the consumers surveyed gave up on the watch within two weeks\u201d. 89% of the respondents said they didn&#8217;t find enough value in the product\u00a0<strong>[3]<\/strong>. Although Apple hasn&#8217;t disclosed Apple Watch sales for 2016 yet, research firm IDC estimates 71% drop in Apple Watch sales year over year\u00a0<strong>[4]<\/strong>.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Wristly-survey.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-3383 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Wristly-survey.png\" alt=\"\" width=\"611\" height=\"322\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Wristly-survey.png 759w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Wristly-survey-300x158.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Wristly-survey-600x316.png 600w\" sizes=\"auto, (max-width: 611px) 100vw, 611px\" \/><\/a><\/p>\n<p><strong><u>The Big Picture:<\/u><\/strong><\/p>\n<p>For a company like Apple which is uniquely positioned for innovation and compared to Tech giants like Google, Apple Watch may not have been the best disruption for this decade. Being a product extension and less distant from Apple\u2019s core products and operations, Apple Watch can be assumed to be highly profitable considered Apple&#8217;s\u00a0massive technological and supply chain muscle. To attract more customers, Apple may even\u00a0drop prices further and make the product more affordable. But what matters more is the opportunity cost of this innovation. While Google is working on virtual reality and self-driving cars, Amazon on delivery drones and AI-oriented home and retail solutions, Apple looks like the unambitious kid in the neighborhood\u00a0who is \u201cdumbing down the smartphone experience\u201d\u00a0<strong>[5]<\/strong>. It may be too soon to give out a verdict on Apple Watch given Apple\u2019s history with innovative products where consumers didn\u2019t even realize they needed the product initially but for now, the future does look grim.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3382\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1-300x199.jpg\" alt=\"\" width=\"242\" height=\"160\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1-300x199.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1-768x510.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1-1024x680.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1-600x398.jpg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Google-self-driving-car-prototype-front-three-quarters1.jpg 2048w\" sizes=\"auto, (max-width: 242px) 100vw, 242px\" \/><\/a> <a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3381\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home-300x162.png\" alt=\"\" width=\"298\" height=\"161\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home-300x162.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home-768x414.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home-600x323.png 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/google-home.png 796w\" sizes=\"auto, (max-width: 298px) 100vw, 298px\" \/><\/a> <a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3377\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air-300x169.jpg\" alt=\"\" width=\"288\" height=\"162\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air-768x432.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air-1024x576.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air-600x338.jpg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Prime-Air.jpg 1280w\" sizes=\"auto, (max-width: 288px) 100vw, 288px\" \/><\/a> <a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Go-TA.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3376\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Amazon-Go-TA-150x150.jpg\" alt=\"\" width=\"165\" height=\"164\" \/><\/a><\/p>\n<p>Sources:<\/p>\n<p>[1]\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Apple_Watch\">https:\/\/en.wikipedia.org\/wiki\/Apple_Watch<\/a><\/p>\n<p>[2]\u00a0<a href=\"http:\/\/www.techradar.com\/reviews\/wearables\/apple-watch-1264567\/review\">http:\/\/www.techradar.com\/reviews\/wearables\/apple-watch-1264567\/review<\/a><\/p>\n<p>[3]\u00a0<a href=\"http:\/\/fortune.com\/2015\/12\/01\/apple-watch-dissatisfied\/\">http:\/\/fortune.com\/2015\/12\/01\/apple-watch-dissatisfied\/<\/a><\/p>\n<p>[4]\u00a0<a href=\"http:\/\/fortune.com\/2016\/12\/06\/apple-watch-sales-figures\/\">http:\/\/fortune.com\/2016\/12\/06\/apple-watch-sales-figures\/<\/a><\/p>\n<p>[5]\u00a0<a href=\"https:\/\/www.techinasia.com\/apple-watch-stupid-idea-shows-apple-falling-innovation\">https:\/\/www.techinasia.com\/apple-watch-stupid-idea-shows-apple-falling-innovation<\/a><\/p>\n<p><a href=\"https:\/\/www.fastcodesign.com\/3048725\/the-apple-watch-is-doing-splendidly-if-you-completely-lower-your-expectations-for-apple\">https:\/\/www.fastcodesign.com\/3048725\/the-apple-watch-is-doing-splendidly-if-you-completely-lower-your-expectations-for-apple<\/a><\/p>\n<p><a href=\"http:\/\/www.macworld.co.uk\/feature\/apple\/11-worst-apple-product-failures-3515144\/\">http:\/\/www.macworld.co.uk\/feature\/apple\/11-worst-apple-product-failures-3515144\/<\/a><\/p>\n<p><a href=\"http:\/\/www.techradar.com\/reviews\/wearables\/apple-watch-1264567\/review\">https:\/\/www.theguardian.com\/technology\/video\/2014\/sep\/09\/apple-watch-ceo-tim-cook-video<\/a><\/p>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Apple_Watch\">http:\/\/www.livescience.com\/51190-apple-watch-health-fitness.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Often considered a glorified iPhone-finder, Apple Watch might not have impressed the world. Yet.<\/p>\n","protected":false},"author":1211,"featured_media":3415,"comment_status":"open","ping_status":"closed","template":"","categories":[287,498],"class_list":["post-3404","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-apple","category-apple-watch"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/digital-winners-losers\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Apple Watch \u2013 a new innovation stream or the lack of it? - Digital Innovation and Transformation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/apple-watch-a-new-innovation-stream-or-the-lack-of-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apple Watch \u2013 a new innovation stream or the lack of it? - Digital Innovation and Transformation\" \/>\n<meta property=\"og:description\" content=\"Often considered a glorified iPhone-finder, Apple Watch might not have impressed the world. 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