Fri, Mar 13, 2015
Would you spend $17,000 on a gold Apple Watch or save it for a high-end Swiss timepiece?
Innovation and branding experts from a leading Swiss business school IMD are divided in their opinions, with one saying he wouldn’t bother and another saying he can’t wait to lay his lands on one.
Apple’s revealed its long-awaited smartwatch will be released in April and among the surprises in the tech giant’s announcement was the large price gap between the lowest-end model, which will cost around $350, and the highest, which will be nearly $17,000 and encased in gold.
IMD President Dominique Turpin says if he were to buy the watch, it would be more out of curiosity than out of necessity.
“I love my mechanical watches, especially the craftsmanship as well as the emotional magic that go with them,” he comments. “Great brands appeal to people's emotions. The more emotion a brand carries, the more iconic it is. This is one of the great values of all major luxury watch brands such as Audemars Piguet, Patek Philippe, Hublot or Rolex. Obviously, Apple has also been very successful at building the emotional magic of its brand. This is probably why many consumers will be tempted to try it."
Professor of Strategy and Innovation Misiek Piskorski says that while he loves the Apple Watch, he would not buy one for himself, because he already has an iPhone, an iPad, and three Macs.
“I might buy it as a present for my mom though,” Piskorski admits. “I think she will enjoy the ability to use Facebook when she is on the go."
However, Professor of Innovation Mike Wade, gives it the thumbs down.
"Am I going to buy the new Apple Watch? For $350? Probably not. For $550? Definitely not. For $10,000 with a rose gold case? Are you joking?
He continues: “Why am I not interested in buying the Apple Watch? Number one: It's ugly. I expected much more in the way of design from Apple. Let's be honest: the Apple Watch looks like a miniature version of the iPhone 3Gs on a strap.
“Number two: Battery life. If a watch battery is measured in hours rather than days or weeks, then you know it is in trouble. The Apple Watch is rated for 18 hours with typical use – not even a full day! What is the point of a sleep monitoring function if it needs to be charged every night?
“Number three: It doesn't do anything that I can't already do with my phone. The Apple Watch is useless without the iPhone, and redundant with it. Until a smartwatch is a substitute for a phone rather than a complement, I will not be interested.
“I am a heavy user of apple products, but this one doesn't tempt me at all. In any case, I already have a watch. It does nothing except tell the time, which I don't need. But, it is beautiful, and it never stops!"Professor of Strategic Management and Innovation Howard Yu, on the other hand, sees a great deal of potential.
"This watch may soon turn a previously unruly landscape that's been littered with many single function wearables into a user-friendly experience around our wrists,” he says.
“Apple's latest foray has elicited sneers among the luxury goods players, in particular the watch industry, which prides itself on artisanal craftsmanship and timeless prestige. Others have shrugged at the thought of checking emails on a tiny display while having a full-size iPhone in one's pocket anyway.
“But such arguments are misplaced. When the iPhone first appeared, no one could have envisioned the applications created by third-party developers.
“Now imagine the possibilities for the Apple Watch when consumers are equipped with a fully functional computer around their wrists, with millions of creative individuals and start-ups developing new applications. That's Apple's strategy and I might just get an Apple Watch soon!”
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