Is Apple Targeting the Luxury Market with the Apple Watch?

The goal of business is to sell at a profit. The trick there is to sell something that is worth more than just the sum of its parts. Thanks to vigorous competition in lots of industries, making a profit is very hard. Your HP laptop makes barely 15 per item in profit. So what alchemy can transform base components into gold?

Two Solutions for Transforming Base Components into Gold

There are really two solutions. The first is adding value through utility. Apple does this with software. It makes the product worth more by having software which has more value to its buyers than commodity equivalents. This requires constant improvement and the accretion of more features and complications while keeping the product conceptually simple. This allows Apple to sell devices for twice the cost of their manufacture.

The second is adding value through desirability. Apple design has always pushed its value above bog-standard utilitarian electronics. But the real experts at this stuff are the fashion brands. They can take a few dollars of leather fabric and stitching and sell something that sells for ten or more times the value of their parts. And what they are selling might be nothing more than a shoe or a bag. Apple knows that it can learn from fashion. If it can combine its power of design and enhanced utility with a fashion house's ability to deliver desirability then it might be onto something quite useful.

Luxury or Just Machinery?

Apple has always been a luxury item, and I say that as someone who loves my iMac. The 10,000 Apple Watch is a luxury item. You'd have to be a hardcore Apple fan to finance 10,000, assuming you can even get financing or have a credit card with a high limit. On the other hand, not everyone lives paycheck to paycheck. Some have accumulated 20,000, 50,000, even 100,000 over the years. So maybe they can afford it, but will they buy it? I don't know. Is a freaking watch really worth 10,000-17,000? Do we really need another gadget?

Comparing the Apple Watch to Other Gadgets

I love my phone, I love my computer, I love my Kindle Fire, and I didn't buy an iPad because the Kindle offers a lot more for much less. And yet, I can't see myself buying a freaking watch. Why? Because watches are a pain. You put them on, take them off, put them back off, it's annoying as hell. It's not like a phone that you put in your pocket and forget about it. Besides, my night table is running out of space.

Despite Apple's sophisticated marketing and the undeniable draw of the brand name, the issue comes down to usability and necessity. For a luxury product to succeed in the market, it needs to offer more than just its perceived status or brand value. It needs to solve a problem or improve upon an existing solution in a way that justifies its steep price point.

A Fresh Take on a Millennial’s Perspective

From a millennial’s perspective, the world of technology is already inundated with wearable devices. From fitness trackers to smartwatches, the options are vast. The question is, what does the Apple Watch bring to the table that cannot be replicated or significantly improved upon by cheaper alternatives?

The innovative features such as health tracking, fitness data, and seamless integration with the rest of the Apple ecosystem are no longer unique selling points, especially with Android devices offering similar functionalities. The added value through utility mainly comes from the software and integration with other Apple products, but this alone may not be enough to justify the high price point for many consumers.

Conclusion

While the Apple Watch is undoubtedly a groundbreaking product with many innovative features, tapping into the luxury market requires more than just impressive technology. For an item or brand to truly achieve luxury status, it must offer an unparalleled experience that goes beyond basic functionality and provides a significant emotional or aesthetic value. In the world of technology, where gadgets are constantly evolving and the market is fiercely competitive, Apple must continuously innovate and offer unique experiences that set it apart from the crowd. Only then can it truly claim to be targeting the luxury market effectively.