Apple watch the launch case study

"In the beginning was Apple. All things were made by it; and without it was not anything made that was made." If technophiles were to write their own Testament, these might be the opening lines. Apple's ability to redefine the appeal of whole categories of computing has attracted the unerring faith of millions of followers. Apple has popularised existing technologies four times: with the Macintosh computer in 1984, the iPod in 2001, the iPhone in 2007 and the iPad in 2010. Recently the faithful have prayed that Apple will pull it off again with its smartwatch. Many firms already make wrist-based devices that measure sleep patterns and exercise, but so far the category has remained a niche plaything for geeks and athletes.1

On September 9, 2014, Apple announced its entry into the wearable computing market with the introduction of the Apple Watch, marking its first new hardware product since the death of Steve Jobs, and since introducing the iPad four years prior. Along with the excitement of typical Apple fans, there was anticipation from other players in the smartwatch industry who wondered how Apple’s entrance would help or hurt their own success. From competitors to component suppliers to application developers, many firms had a stake in Apple’s pricing and promotion strategies for the Apple Watch.

Background: The Smartwatch Industry A smartwatch gained much functionality and versatility from connection to a mobile phone which it used for wireless communication and interaction with a variety of applications or apps. Other functionality embedded in a watch fell under the category of wearable technology, including a variety of sensors, gyroscopes, and specialized communications. By 2014, the smartwatch industry had benefited from market acceptance of wrist-based fitness- and activity-