What is the reason for Apple's smart watch transformation?

Foreign media outlets have published analysis articles highlighting that at this year's Apple event, the new Apple Watch emphasized its sports and fitness capabilities, shifting away from its previous branding as a multi-purpose fashion accessory. This change signals a strategic pivot in Apple's marketing approach, with health and fitness now at the core of the product's positioning. The enhanced fitness features may also pose a challenge to competitors like Fitbit, potentially impacting their market share.

Two years ago, when Apple CEO Tim Cook first introduced the Apple Watch, he emphasized its versatility, showcasing features such as email, calendar access, weather updates, and call handling. At the time, health-related functions were also highlighted. However, the recent launch of the new Apple Watch has clearly shifted the focus towards sports and fitness. "We believe the Apple Watch is the ultimate device for a healthy lifestyle," said Apple COO Jeff Williams during the event.

Apple smart watch transformation What is the idea?

This evolution reflects a broader strategy by Apple to position the Apple Watch not just as a wearable tech gadget, but as a key player in the health and fitness ecosystem. The new Series 2 model is water-resistant up to 50 meters, thanks to an improved speaker system that helps drain water after swimming. Additionally, Apple partnered with Nike to release a special edition Apple Watch with built-in GPS, designed for tracking outdoor activities like running, hiking, and cycling.

Apple smart watch transformation What is the idea?

Despite these advancements, the Apple Watch has yet to achieve the same level of success as the iPhone. Since its launch in 2015, it has sold around 12 million units annually, far below the iPhone’s billion-unit sales. One highly anticipated feature—cellular connectivity—was notably absent in the latest model. With cellular support, the Apple Watch could operate independently from the iPhone, allowing users to make calls on their own. Analysts suggest that while Apple hasn’t yet found a clear identity for the Watch, it is steadily moving toward a more focused health and fitness-oriented device.

While the fitness angle is gaining traction, Apple is still considering the potential of the Apple Watch as a multi-functional digital companion. Brad Erickson, an analyst at Pacific Crown Securities, believes that Apple’s long-term goal is to expand the use cases of its devices, enhancing user experience through its ecosystem. He also noted that the new Apple Watch might be affecting the sales of traditional fitness trackers, including those from Garmin and Fitbit.

Apple smart watch transformation What is the idea?

Garmin spokesperson Amy Nouri acknowledged that the Apple Watch’s popularity could help raise awareness about their products. “It’s great to see Apple launching such a watch,” she said, noting that Apple is well-known in the wearable space. Similarly, a Fitbit representative expressed confidence in the continued growth of the wearables market, stating there is still significant room for expansion.

A major push in the Apple Watch’s fitness capabilities comes from its collaboration with Nike. The Apple Watch Nike+ includes pre-installed Nike apps and design elements inspired by the brand. However, it remains unclear whether this partnership will significantly boost Nike’s presence in the competitive fitness app market. Nike has been focusing on software development since discontinuing its own fitness hardware, like the SmartBand, in 2014.

The latest version of the Nike+ app was released this summer, integrating features like custom online markets to drive direct sales of Nike products. Meanwhile, other fitness apps like Strava and Under Armour’s UA Record are also available on the Apple Watch, offering users a wide range of options beyond Nike. Strava, based in San Francisco, claims to have tens of millions of users and provides GPS-based tracking for runners and cyclists.

Apple smart watch transformation What is the idea?

In 2013, Anheuser-Busch (An Dema) spent over $700 million acquiring several fitness apps, and as of July this year, it had more than 175 million registered users. The new Apple Watch, including the Nike-compatible version, is compatible with apps like UA Record and MapMyRun. Nike confirmed that the Apple Watch Nike+ will feature its logo and certain exclusive functionalities, such as starting workouts using Siri voice commands.

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