More than two years after launching the original Apple Watch, Apple Inc. has finally achieved a technological milestone reminiscent of 1940s comic strips, a move analysts believe will boost sales.
The newly released Apple Watch Series 3, unveiled alongside the highly anticipated iPhone X, introduces wireless LTE connectivity. This advancement allows users to make phone calls and send text messages directly from the watch, eliminating the need for an iPhone to be nearby, unlike earlier models.
The concept of making calls from a wristwatch has fascinated tech enthusiasts since it was famously depicted in the 1946 Dick Tracy comic strip, where the detective used wrist-mounted communication to combat crime. “This has been our vision from the beginning,” said Chief Operating Officer Jeff Williams at the launch event. “Now you can run with just your watch and stay connected. It’s reassuring to know you can be reached if needed.”
While Samsung Electronics Co. Ltd. has offered smartwatches with mobile data connectivity since 2014, these early models were bulky and had limited battery life due to the high power consumption of the data connection. They also required a separate phone number.
In contrast, Apple’s Series 3 is designed to have up to 18 hours of battery life and is only slightly thicker than its predecessor, the Series 2. The Series 3 will be supported by all four major U.S. carriers, with AT&T Inc. and T-Mobile US Inc. charging an additional $10 per month for service.
Analysts generally expect this new feature to drive sales, though opinions vary on the extent. Priced at $399 (approximately Rs. 25,540), the Series 3 is only slightly more expensive than the Series 2, which cost $329 (about Rs. 21,000) and introduced standalone GPS. The additional $70 offers significantly more functionality, including the ability to stream music from Apple Music.
“The third time is the charm for the watch,” noted Bob O’Donnell of Techanalysis Research.
However, the recurring monthly charge could deter some consumers, as it adds up over time, surpassing the initial cost difference between the Series 3 and older models, according to Brian Blau, an analyst at Gartner. “Yes, you do have to pay for that extra data plan, but it seems the carriers will make it relatively easy,” Blau remarked.
Apple does not disclose exact sales figures for its watches. Bernstein analyst Toni Sacconaghi estimates that Apple will sell 12 million watches in fiscal 2017 and 14 to 15 million in fiscal 2018, while Gene Munster of Loup Ventures predicts a more substantial increase to 26 million units in 2018.
Regardless, Apple is intensifying competition for smartwatch rivals like Fitbit Inc. and Garmin Ltd., which may struggle to match Apple’s wireless features both technically and commercially. Garmin and Fitbit have not yet responded to requests for comment.
Although the Watch represents a small fraction of Apple’s total $215 billion in sales last year, it is becoming an integral part of Apple’s product ecosystem, turning a once-fictional concept from the 1940s into a reality for many consumers.
