Apple Watch: The Challenge & The Fear

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Apple Inc.
AAPL
usually redefines the segment it gets in and whether it can do the same with smartwatches still remains a question even though the Apple Watch is generally getting positive reviews. Kiranjeet Kaur, senior market analyst at IDC, was on CNBC recently to discuss the challenge that Apple faces with its watch and the fear of the novelty of the watch wearing off. Creating Need "Smartwatches are still a nice to have items rather than a must to have item," Kaur said. On the reviews and challenges the watch faces, Kaur said, "The initial reviews for Apple Watch have been mostly positive. I mean the only negative I would think is that it still looks more device like than watch like." "I think, the challenge here is not is someone likes Apple Watch or not, it's about creating this whole new category like Apple had done initially with their smartphones and the tablets. So, yeah if Apple or someone else is able to create that need for a new device in your pockets, I think that's going to be crucial." The Fear Kaur was asked if she thinks that sales of Apple Watch can slump significantly once the novelty idea of the smartwatch starts to wear off among consumers and tech lovers. She replied, "Yeah and that's my fear as well that once some of the technology geeks or people who are like really keen to try something new, once they try it on, it doesn't have stickiness then people will just stop buying it. So, there's like no replacement value for the product in that case."
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Posted In: CNBCMedia
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