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Apple Watch, One Year In

Daisuke Wakabayashi, writing for the WSJ:

Apple Inc. sold twice as many Watches as iPhones in each device’s debut year. Yet the smartwatch is dogged by a perception that seems premature given the history of Apple’s most popular devices: disappointment.

As the Watch marks its first anniversary on Sunday — two days before Apple’s quarterly earnings announcement — the product’s fate is critical to the company. It is Apple’s first all-new product since the iPad and a test of its ability to innovate under Chief Executive Tim Cook, when sales of iPhones are slowing.

​So far, the numbers appear solid. Apple doesn’t disclose sales, but analysts estimate about 12 million Watches were sold in year one. At an estimated average price of $500, that is a $6 billion business — three times the annual revenue of activity tracker Fitbit Inc.

Apple Watch can’t be neatly summarized with a one-word description like “hit” or “flop”. It has some serious, deep flaws, but it has sold well — especially considering those flaws. And the people who own one tend to really like it.

It’s a misconception that what Apple does best is unveil mind-blowing new products. What Apple does best is iterate year after year after year — exactly what Apple Watch needs.

On that front, Wakabayashi writes:

There are relatively easy fixes for some concerns. Apple is working on adding cell-network connectivity and a faster processor to its next-generation Watch, according to people familiar with the matter.

Monday, 25 April 2016