Apple Watch

Without question, the Apple Watch has been the most hyped, and maybe most anticipated, wearable launch ever. With 720,000 Android Wear watches sold in 2014, the Apple Watch is already the closest thing this niche category has had to a blockbuster. That is a lot of pressure on a device that has yet to land on the wrists of a single non-celebrity / reviewer. That will all change tomorrow though. Over long 7 months after being unveiled, the first wave of Apple Watch preorders will be delivered tomorrow, April 24th. The launch to this point has drawn a lot of negative publicity, with reports of delays and supply chain issues, constrained inventory, zero stock in stores, almost immediate sell-outs online, and customers not receiving devices on launch day. It will be interesting to see how customers react to the Watch both tomorrow and long term; is this a shiny new piece of tech to be excited about for a few weeks or is it the start of popular culture caring about wearable technology. Obvious us here at Circuits and Cable Knit are a bit biased, but we are hoping for the latter. Maybe, like the iPod, Apple can show consumers why they should care about this exciting niche market segment in a way no other company has been able to yet!

UPDATED: Based on manufacturing capacity and shipping dates, KGI Securities estimates that Apple Watch preorders were in excess of 2.3 million. The company is reported to have a decent track of similar predictions.

According to market research firm Slice Intelligence, almost 1 million people in the US preordered the Apple Watch during the first 24 hours it was on sale. As anyone who tried to order one knows, Apple sold out of launch inventory for most models within 10 minutes of orders opening up. There is debate about whether that is reflective of demand or extreme lack of inventory. If Slice’s numbers are at all accurate, demand could have been the issue, with the average customer ordering 1.3 watches. That would result in 1.25 million watches being sold in the US alone. The preorder numbers should be even higher with orders simultaneously opening in 8 other major markets, including China, Australia, Japan, and the UK. To put this data in perspective, Android Wear sold 720,000 units across all models in 2014 and Pebble’s record breaking Pebble Time Kickstarter sold 96,000 units. Before any of this is taken too seriously, it should be noted that Slice’s numbers must be viewed as an extremely rough estimate. Slice Intelligence is an opt-in service that scans your email to see what you purchase and then extrapolates sales information. I would consider the sample data tainted to some degree because I have no idea who would sign up for something this intrusive (but 2 million people have). Despite the questionable methodology, it is likely the best information we will glean; Apple has already announced it has no plans to break out sales of the Apple Watch in financial reports.

If you are an iOS user, make sure you set your alarm clock. Preorders open for the device tonight at 12:01 AM PDT. In addition to purchasing the watch, at 12:01 Apple will also allow you to make reservations to try on the watch in an Apple Store. No one has any clue what demand (or supply) is going to be like for Apple’s first wearable device. Reviews for the Watch were mixed, but that typically does not have a huge influence on demand at Apple launches. What we do know is that you will not be able to walk into the store and purchase one at launch without having one reserved. In a change of procedure, Apple has told people not to queue up for the launch because the Watch can only be purchased online. If you want to have one in your hand when the device launches April 24th, the safest bet is to place an order as soon as they open up tonight.

Apple held a press event at The Yerba Buena Center in San Francisco to make public the final details of the launch of Apple Watch. The device will launch on April 24th (challenging the meaning of “early 2015”) and will be available in 3 different collections. Functionally the 3 collections are identical, differing only in the material they are constructed from. The lowest end at $349 to $399 is the Sport version. It is made from aluminum and features Ion-X glass covering the display. Ranging from $549 to $1099, the Apple Watch (with no modifiers) is crafted from hardened stainless steel and features sapphire crystal protecting the display. The Apple Watch Edition, $10,000 to $17,000, improves on the Apple Watch by being crafted from solid 18k gold. Many of the bands will also be available for purchase separately. Beginning April 10th, you will be able make an appointment to try on different watches and bands in an Apple Store. Preorders also open up on April 10th.

Apple is entering new territory by pricing its wearable device so highly. The stainless steel and gold versions of the Apple Watch cost as much as a very nice watch, except Apple’s device will only be functional for a few years. Even at $349, the Sport is one of the most expensive smartwatches to be released. There is a lot of debate on how the marketplace will respond to these prices. At the end of the day, from a functionality standpoint, the Watch is nothing more than an accessory for your phone. It requires your phone to be present to be useful and, for the most part, mirrors the phone’s functionality. There are situations where having something on your wrist to alert you to phone calls and messages is very convenient, but not for all people all the time. As the pricing seems to indicate, maybe the best way to think about Apple Watch is as a fashion piece; something that can be personalized, made to look our own, and is always on display.