Editor’s note: Miguel Conner is marketing director at Chicago-based research and data collection firm qSample.
With the release of the Apple Watch, the era of wearable technology has officially arrived. Or has it? The next golden age of tech should have already commenced but earlier releases of smartwatches (and Google Glass) sputtered at the gate. Now it’s Apple’s turn.
The Apple Watch is a watershed moment for wearable technology and perhaps for Apple itself as it attempts different marketing styles and travels unknown consumer roads. For example, the new product is not called an iWatch as Apple is attempting to promote it as a fashion brand and not just a mobile device for the technology-obsessed. As PandoDaily reported, the product’s slow, staggered release seems to be more in line with a luxury item – and not the affordable luxury that Apple has advocated for decades.
Beyond shifting marketing strategies and a fascinating case study for market research, I see the Apple Watch as a hard sell to the American consumer. Why is that? There are several reasons. One is that it just doesn’t have that Apple buzz the world is accustomed to. In past releases of items such as the iPhone or iPad, the buzz was almost deafening across the consumer and media landscape.
We conducted a study with 300 panelists in the last week of February.* The survey did not encounter as much resistance from non-enthusiasts as it did indifference. Interest in the Apple Watch was split among the general population:
- 41 percent were interested,
- 41 percent were not interested and
- 18 percent had no idea of its arrival.
Not surprisingly, respondents who prefer Apple products (31 percent) had an 82 percent interest in the Apple Watch.
The indifference from those who prefer either Android or Kindle devices could reflect the notion that wearable technology is just not that alluring, as 39 percent of respondents said in the survey. Twenty-six percent of those shared that their indifference stems from the price of the Apple Watch and 18 percent claimed to have a wait-and-see attitude, putting the product’s price in the spotlight.
Thirty-six percent of respondents believe, nonetheless, that the Apple Watch will be superior to other smartwatches, while only 4 percent feel Apple’s competitors produce better products. In addition, 39 percent contend that Apple is releasing this product to remain competitive in the tech industry, instead of just wanting to make a profit (26 percent) or exploit its loyal fan base (22 percent).
Those who planned to purchase the Apple Watch claimed several reasons:
- Twenty-four percent want a new way to utilize apps and integrate with other devices.
- Nineteen percent want to be part of the latest technology.
- Sixteen percent cited other reasons (not listed on the survey) for intent to purchase.
- Fifteen percent claim to like anything Apple releases.
- Nine percent claim design/fashion as the reason for intent to purchase.
(Seventeen percent answered “all of the above.”)
Lastly, 38 percent of respondents said they believe the Apple Watch will be a permanent staple for mobile devices and 47 percent disagreed with this notion.
Beyond our research, there are other factors that could potentially hamper the early sales of the Apple Watch:
The price: The Apple Watch ranges from $350 to $17,000 to purchase. Our study revealed that 50 percent of respondents would not pay more than the baseline price of $350, while only 13 percent said cost was not an issue. As far as tech items go, these price ranges may not seem too unreasonable but one must factor in that the Apple Watch is not meant to be a standalone item but a complement to or extension of the iPhone. It will be interesting to see how marketing the Apple Watch as a fashion brand does in overcoming the price and utility issues.
Apple is not a pioneer this time: Smartwatches have already settled in the marketplace, mainly as a niche product. The first smartwatch ever sold was the IBM WatchPad, released in 2001. It’s safe to say that Apple won’t hold the ostensible role as a torchbearer, as it did with personal computers, tablets and smartphones.
Apple isn’t leader of tech hill anymore: According to a recent study, Samsung beat Apple in customer loyalty – although Apple still has the edge when it comes to customer service. Apple spent decades and vast amounts of energy perfecting its image. Today its competitors work just as hard at branding. In our study, 80 percent of respondents saw Steve Jobs as a superior CEO to Tim Cook. Apple may have some thought leadership work to address.
Wearable technology is just not ticking with consumers: As mentioned, smartwatches have been marketed since the turn of the millennium. They have not become an established item in any demographic, whether made by Samsung or Google. Apple may improve on what’s out there but it cannot erase more than a decade of lukewarm reception overnight.
Perhaps the Apple Watch’s greatest threat – and lesson – is the failure of its tech cousin and predecessor: Google Glass. From the very beginning, worries of nonconsensual video, photographs and audio recording haunted the product. This wearable technology fizzled after much fanfare and we are still unsure if it will return to the marketplace in any meaningful aspect. It seems Apple is attempting to take other marketing avenues as there are little privacy concerns with the smartwatch beyond what one would see from mobile devices. The Apple Watch does not have the Orwellian baggage that saddled Google Glass.
Google Glass and Apple Watch are both pricey items, even from two of the most hallowed tech companies. The difference, it seems, is that Google initially marketed Google Glass as a high-end tech item and originally offered it to developers and engineers, thereby alienating a large sector of consumers. As Fast Company reported, there are hints that Google has learned its lesson and will reintroduce Google Glass in a style-before-technology angle.
For Apple, style before technology has never been a problem. As mentioned, the Apple Watch is being presented as a fashion item and it is available to anyone who can afford one its three models: Watch, Sport or Edition.
Google Glass’s venture into beta testing was just as telling. The testing was very unsuccessful, incurring more criticism than helpful suggestions from the public. In contrast, Apple has always worked hard to keep testing behind closed doors in order to release the most polished item possible. The slow release of the Apple Watch may have been a sign of late testing but this could be a positive factor for a product that will compete with Rolex as well as Microsoft.
In the end, Apple’s venture into the wearable technology industry makes sense, even if it is late and the terrain is marked with previous failures. The company cannot count on the iPhone forever – especially with the increase in competition – and iPad sales are slumping, cannibalized by smartphones with larger screens. The success of the Apple Watch, of course, is another matter. Apple may be accustomed to smooth sailing with its product releases but it is now in uncharted waters.
*About the methodology:
This report the data collected was collected from qSample's general population panel, from February 22, 2015 to February 26, 2015. The sample consisted of 300 U.S.-based adults. Some of the primary research in the article is crosstabulated against secondary research cited in the article.