"setting the next consumer lifestyle trend" by khoo hong meng

26

Upload: lamnhi

Post on 11-Jan-2017

224 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

APPLE WATCHSETTING THE NEXT CONSUMER LIFESTYLE TREND

Page 2: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

1 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

In September 2014, Apple unveiled its newest, highly anticipated wearable device, a USD 349 Apple

Watch which was set to be released in early 2015. According to Apple’s CEO Tim Cook, “[It is] the

most personal device we’ve ever created, allowing users to do things they never imagined”

(Lockhart, 2014). It was billed as one of the bigger Apple product launches in recent history, even

beating the iPad's unveiling in 2010 (Above Avalon, 2015) and stealing the thunder from the 4.7-inch

and 5.5-inch versions of iPhone 6 which debuted on the same day at Cupertino. The Apple Watch

represented Apple's newest product category since the iPad in 2010 and was believed to be the first

genuine new product developed in the Tim Cook and Jonathan Ive era at Apple. Market expectations

were high. According to Marina Koytcheva, director of Forecasting division at CCS Insight (2014),

"The [wearable] market could be changed beyond recognition if … Apple decides to get into the

game. History shows …that when Apple enters a market it can reshape the way people think about a

product". The Apple Watch was deemed to be the next iPhone, a device that would be carried by

many, every day. It quickly became one of the best-selling wearable devices, selling out in less than

an hour when it went on sale in April 2015 (Woollaston, n.d.). After the fanfare waned, sales of the

product slowed significantly. A report by market research firm Slice claimed that Apple’s watch sale

fell from an average of 200,000 units per day to 20,000 units or fewer per day (O’Brien, 2015). In

early May 2015, UBS analyst Steve Milunovich lowered his estimate for Apple Watch sales from 40

million to 31 million (Yarow, 2015). Apple Watch is clearly not performing to market expectation.

There are product and marketing issues.

Product innovation at Apple

Apple has been ranked by Boston Consulting Group (2015) as the world’s most innovative company

for 10 consecutive years. The company has been well known for its string of lifestyle changing

innovations. Table 1 shows that Apple is perceived to introduce more innovative devices than other

technologically innovative companies in the past decade.

Since 1976, under the leadership of its late founder Steve Jobs, Apple had been designing,

developing, and selling consumer electronics, computer software, and online services that managed

to garner a cult-like following of users. Some of the company’s more successful products include the

Apple II, Macintosh personal computer (PC), iMac G3 desktop computer, iPod, iPhone, iPad, and

Apple App Store (Halliday, 2011). Table 2 shows a list of Apple’s products.

Page 3: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

2 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Table 1: Top 10 gadgets of the decade1

Rank ABC News2 Paste Magazine3

Complex Magazine4

PCWorld5 Digital Trends6

The Telegraph7

1 Apple iPod Apple iPod Apple iPhone Sony Walkman TPS-L2 (1979)

Apple iPhone Apple iPod (2001)

2 GPS device TiVo DVR Amazon Kindle

Apple iPod Google Sky+ (2001)

3 Blackberry Garmin GPS Apple iPad 2 (Tie) ReplayTV RTV2001 and TiVo HDR110 (1999)

Windows XP USB stick (2000)

4 Digital camera

Vodafone 3G Datacard

Bose QuiteComfort3

PalmPilot 1000 (1996)

Social networking sites Facebook, Twitter

Nintendo Wii (2006)

5 TiVo digital video recorder

Nintendo Wii TiVo Series 2 Sony CDP-101 (1982)

USB Flash Drive

BlackBerry (2002)

6 Nintendo Wii

Amazon Kindle Motorola Razr V3

Motorola StarTAC (1996)

GPS TomTom Go (2004)

7 USB flash drive

Apple iPhone Microsoft Xbox 360

Atari Video Computer System (1977)

TiVo Flip (2007)

8 Apple iPhone

Slingbox Beats by Dr. Dre

Polaroid SX-70 Land Camera (1972)

Apple iPod Asus Eee PC (2007)

9 eBook reader

Blackberry Apple iPad M-Systems DiskOnKey (2000)

Nintendo Wii Apple iPhone (2007)

10 Netbook Xbox PalmOne Treo 600

Regency TR-1 (1954)

WiFi Slingbox (2005)

1 Table created by author on 2 February 2016. 2 Heissner (2009) 3 (“The 20 Best Gadgets of the Decade,”2009) 4 (“The 100 Best Gadgets of the Complex Decade,” 2012) 5 (Tynan, n.d.) 6 (Cassella, 2010) 7 (Beaumont, 2009)

Page 4: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

3 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Table 2: List of Apple's products

Name of Product

Year Brief Description

Apple II 1977 Apple’s first mass produced personal computer (PC). Its compact design and availability in 16 colours, the first ever in the market then, had made it the fastest selling PC in 1979. The product was a success because of its user-friendly and expandability features.

Macintosh PC

1984

Well known for its compact and user-friendly features, the Macintosh was the first product designed for non-engineers, targeting the mass market.

iMac G3 desktop computer

1998 This was an all-in-one computer launched by Steve Jobs after his return to a declining company in his absence. The iMac was a consolidation of the company’s existing consumer desktop models housed in a unique, translucent, square-base pyramidal plastic casing that was available in various colours, such as blue, red, green, etc.

iPod 2001 The iPod, a digital music player, was a stylish MP3 player capable of storing 1,000 songs. The late Steve Jobs remarked at its launch in October 2001 that with a 10-hour battery life, "[l]istening to music will never be the same again" (Halliday, 2011). The iPod’s sleek and slim minimalist design, available in only two colours (i.e. black and white), revolutionised digital music.

iTunes 2001 iTune was a media management system comprising a media player, media library, radio broadcaster, and mobile device application for playing, downloading, and organizing digital audios and videos on Apple devices, such as iPod, iPad, PC, etc.

iPhone 2007 The iPhone was both a smartphone and iPod. The iPhone propelled the smartphone from a business gadget to pop culture (Pierce, 2015). According to Frommer (2009), iPhone has set the standard for smartphones and changed the consumption behaviour of mobile phones. Its design makes usage intuitive.

iPad 2010 iPad was a touch-screen tablet for interacting with multimedia such as newspapers, electronic books, photographs, videos, music, video games, and documents (with limited word processing) using iPhone apps. It functioned as a multimedia centre, web browser, message hub, organiser, and planner, and social media manager (Barett, n.d.).

iOS App Store

2011 The Apple App Store was a digital distribution platform for mobile apps developed and maintained by Apple. It housed more than 1.6 million apps (Statista, n.d.a), making it the second largest app store after Google Play in 2015, downloadable either for free or a fee.

The new products introduced by Apple in the past four decades shared a number of common tenets,

namely, a conscious emphasis on the speed of new product introduction to market, lean R & D

processes, exploitation of technological platforms, and systematic exploration of adjacent markets

(Ringel, Taylor & Zablit, 2015).

On average, Apple introduced an improved version of a product or device every couple of years. Its

product breakthrough is viewed as technologically and creatively far superior to existing products in

the market in every decade. The ability to bring new innovative products to the market quickly has

been a major source of competitive advantage for Apple. It has kept competition at bay and defined

new standards for the industry. Breakthrough innovations differentiated Apple as a market leader,

forcing its competitors into playing catch-up. For example, the iPhone was the first truly touch-

Page 5: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

4 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

sensitive smartphone and it quickly became the new standard for smartphones with Samsung, LG,

and Nokia adopting similar touch-screen feature in their smartphones later.

After Steve Jobs’ ouster in 1985, Apple had a decade long of botched product launches targeted at

the general consumer, such as digital cameras, portable CD, audio players, and video consoles. Its

partnership alliances with IBM and Motorola to create a new computing platform for Macintosh also

failed to work out. In 1996, he returned as interim CEO of Apple, and the first thing he did was to

restructure Apple and divest its manufacturing. By 2000s, almost all of Apple’s manufacturing was

outsourced. Apple "believe[d that] the vast scale of overseas factories as well as the flexibility,

diligence and industrial skills of foreign workers [had] so outpaced [its] American counterparts [such]

that [the] “Made in the U.S.A” [label was] no longer a viable option for most Apple products"

(Duhigg and Bradsher 2012). By focusing on R & D and keeping its processes lean, Apple was able to

speed up the introduction of new products to markets. Lean R & D processes further facilitated

flexibility and efficiency in operations and logistics planning.

It is believed that companies with technological platforms are more sustainable and therefore, they

are attractive long-term investments (Trevlos, 2013). Apple was the first to establish successfully a

technology platform for users through its iPod. Through the ecosystem iPlatform built around the

iPod’s closed operating system and products, Apple was able to collect data on user consumption

patterns and perform advanced analytics to improve marketing decision-making.

Apple had been an aggressive advocate of developing new products for adjacent markets. Apple was

founded as a computer company but by the early 2000s, it had diversified into electronic devices

such as digital music players and mobile phones. Apple chose its adjacencies carefully. The markets

might be small but they showed promising growth potential that Apple could develop by leveraging

its existing competencies. In implementing this strategy, Apple was contented to be a market

follower. For instance, when Apple introduced its iPod in 2001, there were already well known MP3

brands such as RCA Lyra player by Radio Corporation of America and Creative Nomad by Creative

Laboratory. Apple was also not the first to enter the smartphone market. In 2007, the key

smartphone players were Blackberry and HTC. By entering a market late, Apple was able to learn

from the experience of pioneers and made fewer costly mistakes (Kellogg Insight, 2013).

However, in most of the markets it entered, Apple was able to work its way into a leading market

position by surfacing latent user demand. Many users were attracted to Apple’s products because of

their stylish designs. Apple’s products come with consumer-appliance aesthetics, designed to be

playful and friendly (Cruikshank, 2006). They are simple, easy to use, and easily integrated with other

Apple products through its iOS platform system. Users can express their personalities overtly

through Apple’s unique designs. To own an Apple product is to subscribe to a certain way of life.

Through product design, Apple has succeeded in cajoling an exclusive usage identity to attract a

huge following of loyal users.

Managing product development and design at Apple

Although Apple’s products have gained global recognition, its product development process remains

shrouded in mystery (Panzariono, 2012). Tim Cook had, to a large extent, summed up the company’s

attitude toward product development when he said, “I don’t want to let anybody know our magic

Page 6: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

5 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

because I don’t want anybody copying it” (Lashinsky, 2012). Apple’s organization and management

of product development have long (since Steve Job’s time) been intriguing and appear to defy well

established management maxims of transparency, empowerment, and autonomy.

Unconventional organizational structure to maintain the spirit of start-up

Apple has about 115,000 employees all over the world (Yu, 2015). It has to be mindful not to allow

the bureaucratic system of a large organization to hinder innovation. At Apple, “employees don’t

need an organization chart to know who is powerful” (Lashinsky, 2012, p. 42). The executive team

which comprises a small council of advisors to the CEO manages the company with the support of

almost 100 vice presidents. However, corporate positions at Apple do not necessarily equate to

power. To maintain the spirit of a start-up in product development, Apple focuses on boldly creating

a few great products instead of making incremental improvements on numerous product variants.

Once the company decides to develop a specific new product, it defines the procedures, personnel,

and responsibilities at each stage in the creation of the new product. The deadlines of milestones

have to be agreed and communicated to all parties concerned. A start-up team is then formed with

members selected based on their expertise. The team reports directly to the CEO, thus freeing it

from the burden of seeking clearance from layers of hierarchies that are typical in a large

organisation.

The executive team would meet every Monday to review the progress of all new products under

development. According to the late Steve Jobs, “We look at every single product under

development. I put out an agenda. Eighty per cent was the same as it was last week, and we just

walk down it every single week” (Lashinsky, 2011, p. 19). In this way, key products issues would have

taken no more than two weeks to be resolved.

Product development that begins with design

At Apple, product design took centre-stage. It is Apple’s belief that the first step to great product

innovation is design. Headed by design talent Jonathan Ive, Apple’s team of designers, better known

as industrial designers (IDs), created Apple’s new product in a highly secured design laboratory,

which was accessible only by a small group of staff. Governed only by secrecy agreements, the role

of the IDs was to “imagine objects that don’t exist and to guide the process that brings them to life”

(Kahney, 2013, p.165).

The IDs enjoyed an elitist status (Fiegerman, 2012). They worked in a large open Industrial Design

studio with little personal space but great privacy (Burrows, 2006). They maintained very little

interaction with the rest of the staff in the company. They had management clout but no

management responsibilities. Without any responsibilities on Apple’s profit and loss (P&L), the team

was given a free hand to explore any possibilities without making compromises (Kinni, 2013).

Without cost constraints in product design, they were free to explore a plethora of possibilities to

create the ideal product.

As commented by Yves Behar, CEO of design consultancy Fuseproject, “Most companies make all

their plans, all their marketing, all their positioning, and then they kind of hand it down to a

Page 7: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

6 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

designer” (Lashinsky, 2012). Apple, on the other hand, reversed the entire process where every

other department needed to conform to the designer’s vision.

Dedicated focus on product packaging

Many companies spend more effort and time in software development and hardware

manufacturing. Apple, on the other hand, views product packaging with pedestal importance. Once

a product was designed, Apple will devote a significant amount of time and resources to wrap it

beautifully.

As explained by Jonathan Ivy, “Packaging can be theatre, it can create a story” (Isaacson, 2011, p.

208). Google executive Deep Nishar commented that Apple’s packaging had the ability to “evoke …

that feeling of anticipation, that you are to see something beautiful, something great, something you

had been reading about and hearing about, and watch Steve talk and demo” (Lashinsky, 2012, p.51).

Apple’s packaging designer spent months in a secluded, out-of-bounds office with limited authorised

access to members involved in new product development. The designer continuously tries out

numerous box prototypes obtained by permuting variables such as colour, size, type, and position of

full-bleed sticker, instructions, and so forth. The aim is to test and optimise the subliminal feelings

experienced by a user from the point of picking up the box for the first time after purchase, to

opening and dislodging the new device from it.

The use of models to present design ideas

At Apple, models or mock-ups play a critical role in deciding the final design of the new product and

the company spend millions of dollars on them. Design ideas are presented to the CEO in the form of

mock-ups. For mock-ups to look as close as possible to the actual design, the design team frequently

outsources its final designs to model shops with specialist equipment and skills. Most of Apple’s

mock-ups are created by Fancy Models Corporation, a model-making company based in Fremont

and run by Ching Yu, a model maker in Hong Kong (Kahney, 2013).

The production of multiple versions of the first commercial batch

Upon the completion of the design of the new product, control is handed over to the engineering

program manager (EPM) and global supply manager (GSM) who would make joint decisions on the

best course of action for the smooth production of the product. Their considerations include the

procurement of materials, manufacture and assembly of components of the final product, and

transportation of the final product to retail outlets all over the world. As Apple outsources its

manufacturing to developing countries such as China, the executives spend most of their time

overseas to monitor and coordinate the manufacturing and supply chain processes of Apple’s

vendors.

Although all Apple’s vendors are bound by secrecy agreement, there is likelihood that new product

designs might be leaked to the media or competitors by workers during production before the

product launch date. To prevent this from happening, Apple would usually build a few versions of

the final product so that none of its vendors would know which product design would actually be

launched. Once a version of the product was produced, the EPM would take it back to Apple’s

headquarters at Cupertino for examination and comment, and leave for China again to send the next

design through the production process. The steps would be repeated until the launch date closed in.

Page 8: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

7 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

This approach to product development and design tend to be expensive and inefficient but works

well for Apple to achieve various product breakthroughs.

Like all Apple products, the development of Apple Watch was kept secret. Rumours were already

circulating in 2011 that Apple had plans to enter the wearable market. Speculations flew regarding

its name and design. Many suspected that it would be called iWatch (Stroud, n.d.) following the

company’s series of i-labelled products which had, since the iMac in 1998, become an iconic

representation of Apple’s innovativeness. In February 2013, The New York Times reported that the

iWatch would run on iOS and have a rectangular glass face made of curved glass (Reuters, 2013). It

would also have the capability of connecting with other Apple devices such as the iPhone and iPad.

In March 2013, Bloomberg reported that the Apple planned to launch iWatch by end of 2013

(Burrows & Kharif, 2013). However, the Financial Times mentioned in July 2013 that it would be

ready in late 2014 (Bradshaw, 2013). Apple finally put all market speculations to a rest when Tim

Cook introduced the product as “the next chapter in Apple’s story” (CBS News, 2014) on 9

September 2014, calling it Apple Watch instead of iWatch. It had a flat rectangular face. Some

models have sapphire crystal display (not Willow Glass from Corning).

Features of Apple Watch

Apple Watch was Apple’s first new product in four years8. It was a smartwatch whose ability went

beyond telling time. It was a piece of wearable technology that served a number of purposes. A user

could use it to make phone calls, check caller ID, retrieve voicemail, send and receive messages, and

access information. It was also a sports watch with fitness tracking features.

The actual product

Apple Watch was available in three collections, namely basic, sports, and limited edition; two sizes,

namely, 38mm and 42mm; six different finishes, namely, stainless steel, space black stainless steel,

silver aluminium, space grey silver aluminium, 18-carat yellow gold, and 18-carat rose gold; a range

of 18 changeable straps; and nearly a dozen faces.

The basic style of the watch was known as Apple Watch — scratch-resistant steel case and sapphire

crystal display. By February 2016, there were 20 models in this collection — a choice of either the

standard stainless steel, or space black stainless steel in sizes of either 38mm, or 42mm, and

completing with silicone, leather or metal straps.

Apple Watch Sport had an anodised aluminium case which came in either silver or space grey. The

watch’s display was made of Ion-X glass9 which was more durable than sapphire crystal. There were

a total of 16 models available in this collection in February 2016 which came in both sizes and

different coloured silicone straps.

8 The previous new product category was iPad in 2010 9 A manufacturing process of creating a harder glass surface by introducing other molecules into glass through ion exchange

Page 9: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

8 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Apple Watch Edition was wrapped in an 18-carat gold case, available in both yellow and rose gold

colours. Like the standard Apple Watch, the display was crafted from sapphire crystal. In February

2016, the Apple Watch Edition came in eight models, with a variety of silicone and leather straps.

Apple Watch took on a gender-neutral, rounded rectangular design, with dimensions of 33.3

millimetres X 38.6 millimetres X 12.3 millimetres for the smaller watch and 35.9 millimetres X 42

millimetres x 12.46 millimetres for the larger one. It weighed 25 grams to 55 grams and 30 grams to

69 grams for the 39 millimetres and 42 millimetres-sized watch respectively, depending on the case

material (with aluminium being the lightest and gold ones the heaviest). It had a digital crown on the

top right edge of its display. The crown could be turned to scroll up and down or zoom in and out of

items listed on the display. Users could choose from an assortment of 11 digital faces to display on

the watch, ranging from classic, to analogue, digital, scenic, and cartoons.

The watch ran on battery which was rechargeable using a magnetic-charging cable. Charging was

carried out simply by allowing the charger’s magnet to attach onto the back of the watch and then

plugging the charging cable into a USB port. The watch also had a built-in speaker and microphone,

but no headphone jack.

The core product

Apple Watch “delivers important information when and where you need it. Helps you easily perform

everyday tasks in seconds. Instantly connects you to the people and things you care about most. All

while keeping precise time” (Apple website, n.d.). Indeed, the Apple Watch was a feature-packed,

compact wrist companion (Stein, 2015). The Apple Watch was “as much about individuality and

customizability as it was about technology” (Benjamin, 2014). Other core level functions include

time, communication, fitness, and information.

Apple Watch appealed to the consumer’s desire to be different, to be an individual. It has a beautiful

form and is stylishly designed, and it caters to the user’s fashion sense and personality. As a gadget

for self-expression, Apple Watch can be customised to suit the specific occasion or time by changing

its face. Animated emojis (and there were 153 of them) can be added to messages to express the

user’s mood in emails. In this way, Apple hopes to help users connect with others at a more personal

level than simply sending text messages.

Apple Watch is a small computer with state-of-the-art technology donned on the wrist. Operated by

an iOS system known as WatchOS, Apple Watch had to be activated by the iPhone. The WatchOS

interface is presented as a home screen with circular app icons on the face of the watch (see Apple

Watch image in Table 2). It can be navigated by tapping its touch-sensitive display or by turning its

crown clockwise (or anti-clockwise). WatchOS supported Handoff10 and Apple Pay11 to send content

from the watch to other iOS or OSX devices and make secured payments for transactions at places

with contactless payment terminals respectively. It also acts as a viewfinder for iPhone’s camera and

10 Handoff is an Apple software that allows the user to switch between apps on Apple’s devices, namely Mac, iPad, and iPhone. For example, a user writing an email using Apple Watch enters a room and continues writing the same email on iPhone. 11Apple Pay is mobile payment app that utilises Near Field Communication to initiate secure payments between contactless payment terminals and iPhone.

Page 10: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

9 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Siri12. All Apple watches had 7GB storage and could store up to 2GB of music and 75MB of

photographs. It has a built-I heart rate sensor powered by infrared, visible, and LED lights as well as

photodiodes.

By flicking one’s wrist, Apple Watch can display time either in digital or analogue format. It can tell

time to an accuracy of 50 milliseconds of the Coordinated Universal Time, a precision level that was

unperceivable by the human eye.

The Apple Watch is developed to make communication more convenient. It can send out alerts on

important messages and calls so the users do not have to constantly check the iPhone. Using voice

command via Siri, messages can be sent, calls can be placed, directions can be obtained, and specific

workout can be started easily.

Apple Watch is also a fitness companion. It can measure heart rate, duration of workout, distance

covered, and calories burned. It could also track movements such as running, walking, and climbing.

It is capable of detecting whether the user is standing, and it can send out reminders if it detects

idleness.

Supported by WiFi and Bluetooth, Apple Watch is a portable information device that provides access

to essential daily information such as news, weather updates, maps and directions, stock prices, as

well as calendars and activity schedules.

The augmented product

Apple Watch is augmented with a plethora choice of straps. Apple offers a full range of straps in a

variety by colours, materials, and closure. A user could choose dark, pastel, or bright colours to

match occasions or moods. A user can select silicone, leather, or metal straps to match the outfit.

The straps are available in magnetic, buckle, or butterfly closures to suit the user’s preferences. The

purchase of Apple Watch and Apple Watch Sport models is accompanied by a limited warranty of

one-year hardware repair and up to 90 days of complimentary support. Users can extend the

warranty coverage to two years by paying for AppleCare Plus13.

For a summary of the features and prices of the three collections of Apple Watch, see Table 3 below.

Table 3: Product feature and price comparisons of Apple Watch collections

Variables Apple Watch Apple Watch Sport Apple Watch Limited

Functionality Excellent Excellent Excellent

Display material Hard Very hard Hard

Casing material Heavy Light Heaviest

Size Good Good Good

Variety of straps Best Good Poor

Price (USD) 349 onwards 549 onwards 10,000 onward

12 Siri is an intelligent software that enables Apple users to operate iPhone, iPad and IPod through voice command in natural languages. 13 In 2016, the fees were SGD 98 and SGD 118 for Apple Watch Sport and Apple Watch respectively.

Page 11: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

10 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Competitors’ smartwatches

Apple is not the first company to introduce smartwatch. The first wrist watch with enhanced

functionality beyond timekeeping is Pulsar NL C01 which was introduced in 1972 by Hamilton Watch

Company. Pulsar has a programmable memory. Smartwatch first became a piece of wearable

technology in 2000 when Professor of University of Toronto Dr Steve Mann showcased his prototype

of a wristwatch computer that functioned via IBM’s Linux operating system. In 2009, Samsung

welded phone and smartwatch technologies with its S9110 Watch Phone. Interests in smartwatch

began to shore up since then. By 2013, 40 companies had launched smartwatches, selling

approximately 3.1 million units worth USD 700 million globally (Smartwatch, n.d.a). The top four

smartwatch companies in 2014 were Samsung, Lenovo, LG, and Pebble (Smartwatch, n.d.b). Table 4

shows a comparative analysis of key features and functions of the Apple Watch against other major

smartwatches available in the market.

Page 12: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

11 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Table 4: Comparative analysis of key smartwatches available in the market

Brand Apple Watch Gear line Moto 360 LG G Watch Pebble Watch

Company Apple Samsung Lenovo/ Motorola LG Pebble

Sample design

14

15 16

17 18

Operating system

WatchOS Android 4.3 and Tizen (a Linux-based system developed by Samsung)

Android Wear Android Wear Pebble OS capable of communicating with iOS and Android

Size in mm

33.3x38.6x12.3 and 35.9x42x12.46

36-40x58-59x10-12.5 (depending on models)

42 and 46 diameter 37.9x46.5x9.95 52x36x11.5 46x34x10.5 (for steel model)

Weight in grams

25-55 and 30-69

55 to 68 49 43 38 56 (for steel)

Key functions

Touch-screen

Calls and alerts

Emails and text/visual messages with emojis

Digital crown for navigation

Mobile payment via Apple Pay

Siri assistance

Built-in accelerometer and gyroscope

Measurement of heart rate and movement

Apps from Apple App Store and third-party apps

Remote access to camera and photos

Bluetooth and WiFi

Built-in speaker and microphone

Music storage, access and control

7GB storage, 512 MB RAM

Calls and alerts

Emails and text messages

Built-in accelerometer and gyroscope

Measurement of heart rate and movement

Bluetooth and WiFi

Voice command

Built-in microphone and speaker

Built-in camera

Music storage, access and control

Remote TV access via infra-red sensor

4GB storage, 512 MB RAM

Touch-screen

Integrated with Google Now

Calls and alerts

Emails and text messages

Built-in accelerometer and gyroscope

Measurement of heart rate and movement

Built-in ambient light sensor

Bluetooth

Music access and control

Remote access to camera and photos

Wireless charging

4GB storage, 512 MB RAM

Always-on display

Integrated with Google Now

Calls and alerts

Emails and text messages

Voice command

Built-in accelerometer and gyroscope

Measurement of heart rate and movement

Bluetooth

Built-in microphone

Music access and control

Remote access to camera and photos

4GB storage, 512 MB RAM

Calls and alerts

Emails and text messages

Built-in accelerometer and gyroscope

Measurement of movement

Bluetooth

Apps from Pebble App Store

Voice command

Built-in microphone

Remote access to camera and photos

Music access and control

128 KB RAM

Brand Apple Watch Gear line Moto 360 LG G Watch Pebble Watch

Price (USD)19

349.00 to 17,000. 00 depending on models

99.99 to 299.00 149.99 to 399.99onwards

99.99 to 229.99 79.99 to 149.99

From the comparative analysis presented in Table 4, Apple Watch has the unique features of Apple

Pay and personalised messages which appeal to some consumers.

14 (Joho345, 2015) 15 (LārlisDambrānbs, 2014) 16 (Raysonho, 2014) 17 (LGEPR, 2014) 18 (Pebble Technology, n.d.) 19 As s at February 2016

Page 13: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

12 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Apple Pay is designed as a quick, easy, and convenient way to make secured payments. It is

supposed to make transaction payments superfluous. Although users praised this feature, it is not

widely available. Only 10 to 20 per cent of retailers in the United States have adopted it (Swanner,

2016). At places where Apple Pay was available, it worked flawlessly. According to one user, double

tapping the crown brought up the default credit card which not only facilitated smooth payment but

also kept the cashier excited (Boxall, 2015).

Messages can be personalised at three levels — emojis, heartbeats, or drawings. There are several

new, animated emojis that are reserved specially for Apple Watch. Emoji in Apple Watch garnered

mixed feedback. Emoji lovers felt that they were fun and offered a quick and handy way to give

concise responses though not groundbreaking. Senior editor of The Verge Lauren Goode commented

that “not everyone … finds animated emojis thrilling” while co-executive editor of R/code Kara

Swisher called them “creepy” (Newman, 2015). Users could also send their heartbeats or create

their own drawings by touching the watch display. The interactivity provided a playful and fun

experience for the user. Sending and receiving heartbeats from loved ones could be refreshing

initially but lost its appeal after a while. In addition, “with such a small screen you don’t have much

space, even if you can use multiple colors … for drawing” (Miles, 2015).

Besides criticisms on the uniqueness in its technology, Apple Watch had marketing issues as well.

Marketing to iPhone users

Apple Watch’s capability could only be realised in the presence of an iPhone. In other words, the

Apple Watch was designed for an iPhone user to wear. But who were the iPhone users and would

they put an Apple Watch on their wrists?

Studies by Hixon (2014) and comScore (Mactech, n.d.) revealed that iPhone users were weighed

significantly on the following demographic traits:

Older, usually 24 years and above

More educated, with graduate degree or higher

More affluent with household income of USD 100,000 or higher

More likely to have children

More likely to be professionals and business people, less likely to be computing nerds

More addicted to digital devices

Usually spent on clothing, entertainment, and travel

In addition, a survey of 2,000 smartphone users by TalkTalk Mobile showed that iPhone users had

the following personality traits:

Tend to be image conscious, confident, ambitious, daring, bright, and flirty

Believe that they were valued most by their bosses

Are active on social media sites (Woollaston, 2013)

Page 14: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

13 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Apple Watch attempted to sell to iPhone users by clustering their demographic and personality traits

into three profiles:

The minimal elitist

Users purchased Apple products because of its simplistic and yet elegant and expandable design.

Deutschman (2000, p. 307-8) described Apple users as someone “austere, rarefied, minimalist, cold,

refined: the understated taste of an aloof elitist”. Apple Watch appeared to be designed for this

group of users in mind. Apple offered a quality design whose expandability came in the form of

changeable straps rather than technology. According to Macworld reviews, Apple Watch was

“beautifully designed and engineered with superb look and feel. It’s chunky, rounded body is faintly

reminiscent of the original iPhone, yet … modern-looking ...very satisfying to hold … pleasingly

comfortable on the wrist” (Haslam, 2016). However, this collection had more models than Apple

Watch Sport which defied minimalism. It is not surprising that more users bought the Apple Watch

Sport (Smith, 2015).

The active sportsperson

Apple Watch Sport collection is for the more active user, someone energetic who constantly moved

around and engaged in physical work (Benjamin, 2014). There is no uniquely valued selling

proposition that would clearly differentiate the sport and basic collection other than the fact that

Apple Sport Watch was 5 grams to 14 grams lighter and had more resistant-to-scratch display. In

terms of software and hardware technologies, there was no difference. Fitness measurement

features available for this collection can also be found in other collections.

The business fashionista

Apple Watch Edition catered to the business professional, or at least, those who cared most about

style and grace (Benjamin, 2014). Apple Edition could be an attempt of the company to position

Apple as a fashion brand, a designer of fashionable wearables that could be worn everyday

everywhere like jewellery.

Pogue (2015) remarked that Apple Watch was “half computer half jewelry”. The word “jewelry”

connoted something precious, rare, expensive, exquisite and luxurious. This explains why the

Company priced Apple Watch Limited above USD 10,000. However, can wearable be associated with

jewellery? Can the image of wearable be consistent with luxury? Apple’s retail director Angela

Ahrendts once told the Harvard Business Review when she was the CEO of Burberry, "In luxury,

ubiquity will kill you – it means you're not really luxury anymore" (Segan, 2015). The simultaneous

targeting of multiple-user segments might pose service problems for the company. Bitner (1992)

espoused that the behaviour of one customer group could influence the satisfaction of another

customer group in a service setting. Serving customers with significantly different service

preferences could alienate one against the other. The service expectations of Apple Watch Edition

and Apple Watch users are different. Apple Watch Edition users demand a higher level of service;

they prefer more exclusive and personalised service in a classy setting. Will they like to be seen

shopping for Apple Watch Edition amongst the minimal elitists? How would the minimal elitist feel

when someone who asks for the Apple Watch Edition at an Apple Store enjoys a higher level of

service?

Page 15: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

14 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Apple can also use premium pricing to manage value perception. Quality products are usually more

expensive. Users are willing to pay more for better performance and unique design only if the price

premium justifies the perceived value. Even if Apple users who have high income can afford it, will

they purchase a piece of wearable technology at USD 10,000? Does the 18-carat gold case of Apple

Watch Edition worth a price premium of almost USD 10,000? According to PricewaterhouseCoopers

(2014), millennials do not want to pay too much for their wearable devices; they would rather be

paid to use them. Research company NPD’s survey showed that the average wearable price paid by

users was only USD 96 to USD 109 in 2015 (Weiss, 2016).

In September 2015, Apple announced its partnership with Hermès to launch a new collection of

Apple Watch Hermès. Hermès would design exclusive straps and watch faces to accompany the

Apple Watch. This collection would be priced from USD 1,100 to USD 1,500, depending on the size of

the case and the style of the straps. Can this marketing initiative be an indication that Apple finally

realised the inconsistency in its pricing strategy?

Apple Watch launch

The Apple Watch was officially unveiled on 10 September 2014 and generated more media hype and

market interest than iPhone 6 which was launched on the same day. Market reactions were mixed.

International Data Corporation (IDC) predicted that Apple Watch will lead a rapidly growing

wearables market through at least 2019, selling up to 45.2 million pieces by 2019 (Pierini, 2015). On

the other hand, CNBC (Graham, 2015) reported that a study by market research company Slice

uncovered that Apple Watch sales in the United States fell by 90 per cent within six months of its

release. When queried on Apple Watch sales in an interview with The Wall Street Journal, Tim Cook

answered vaguely: “We shipped a lot the first quarter. And then last quarter we shipped even more.

I can predict without hesitation that we’re going to ship even more this quarter” (O’Brien, 2015).

One fact stood clearly. During Apple Watch’s release, long queues outside Apple Stores became a

rare sight. The Apple Watch might not be breaking through to the consumer at all.

Can it be that Apple’s well of new product innovation has run dry?

What should Tim Cook do to turn the situation around?

Page 16: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

15 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

End-of-Case Questions

Question 1

Discuss Apple's approaches in the management of new product development.

Question 2

What targeting strategy does Apple Watch use? Explain with illustrations.

Question 3

Using perceptual maps, discuss the positioning strategy of Apple Watch.

Question 4

What recommendations would you give Tim Cook to increase the sales of Apple Watch? Justify with

reasons.

Page 17: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

16 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Appendix A

A chronological description of Apple’s successful product launches

Apple II launched in 1977

The Apple II was Apple’s second generation PC and the company’s first mass-produced computer. Its

compact design and availability in 16 colours, the first ever in the market then, had made it the

fastest-selling PC, grossing USD 79 million in 1979. The product was a success because of its user-

friendly and expandability features. It was available in a range of RAM, from 4K to 64K. Aggressive

marketing was another reason for its widespread acceptance. For example, volume discounts and

manufacturing arrangements to educational institutions were given to schools. Software developed

especially for the Apple II, such as the VisiCalc spreadsheet, made it popular among business users

and families.

Macintosh PC launched in 1984

Well known for its compact and user-friendly features, the Macintosh was the first PC built without

using programming language. It was designed for non-engineers, targeting the mass market.

Featuring an integral graphical user interface and mouse, the layman found it relatively easy to use.

It was also the first product that was launched with much pomp. Apple showed the world that it was

different from other technology company — it spent millions of dollars to showcase its product at

the Super Bowl.

iMac G3 desktop computer launched in 1998

This was an all-in-one computer launched by Steve Jobs after he was invited back to Apple after the

Company suffered a decade-long decline in his absence. He recruited design talent Jonathan Ive to

design it. The iMac marked their synergistic collaboration in years to come and rebuilt the reputation

of the company. The iMac was a consolidation of the company’s existing consumer desktop models

housed in a unique, translucent, square-base pyramidal plastic casing that was available in various

colours, such as blue, red, green, etc. Apple boldly replaced the floppy drive with CD-ROM drive and

introduced USB ports. The iMac was a phenomenal success and sold almost 800,000 units in the first

five months of its launch.

iPod launched in 2001

The iPod, a digital music player, was a stylish MP3 player capable of storing 1,000 songs. Steve Jobs

remarked at its launch in October 2001 that the iPod’s a 10-hour battery life makes "[l]istening to

music … never … the same again" (Halliday, 2011). It was the device that transformed Apple from a

computer company into a mass-market electronics giant. Its sleek and slim minimalist design,

available in only two colours (i.e. black and white), revolutionised digital music. It had a wheel that

could be rotated physically to play selected music, just like a disc jockey spinning music records at a

party or club. The white iPod earbuds could be noticed by people from afar, which publicised the

product further. Very quickly, iPod became a street cult.

Page 18: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

17 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Tunes launched in 2001

The iTune is a media management system comprising a media player, media library, radio

broadcaster, and mobile device application for playing, downloading, and organizing digital audios

and videos on Apple devices such as iPod, iPad, PC, etc. The iTunes Stores was launched in 2003 with

the aim of helping iPod users gain access to new music. The iTunes Stores popularised online music

purchase and changed the music industry forever. In 2012, 1.4 billion digital singles were sold with

iTunes taking 63 per cent of all digital music sales (Covet, 2013).

iPhone launched in 2007

Steve Jobs unveiled Apple’s trump product after much market anticipation in 2007. The iPhone

continued to charm technocrats and non-technocrats alike even after six generations — iPhone 6 in

2014. The iPhone is both a smartphone and iPod. The iPhone propelled the smartphone from a

business gadget to pop culture (Pierce, 2015). According to Frommer (2009), iPhone set the standard

for smartphones and changed the consumption behaviour of mobile phones. It was designed to

make usage intuitive. It was the first truly touch-sensitive phone, allowing the user to zoom in and

out of a Web page, picture, map, or photograph by simply pinching its screen. Users could go

through a directory of items by swiping the phone screen, just like flipping a menu. It has a motion

sensor which gives wider screen displays upon rotation. Users find it easy to browse, purchase, and

install free and paid software programs, commonly known as apps. To encourage app developer to

develop software for iPhone, Apple decided to take 30 per cent of all revenue generated from apps

in its App Store, returning 70 per cent to the app developer. Apple’s mobile browser mobile Safari

makes browsing of the Internet on the iPhone similar to using the PC and laptops.

iPad launched in 2010

The iPad is a touch-screen tablet for interacting with multimedia such as newspapers, electronic

books, photographs, videos, music, video games, and documents (with limited word processing)

using iPhone apps. It functions as a multimedia centre, web browser, message hub, organiser and

planner, and social media manager (Barett, n.d.). The iPad is capable of performing sophisticated

editing of videos and photos as well as sequencing, mixing, editing, and applying effects to audio

files using apps from Apple’s App Store. The iPad can be set up to manage emails from various

personal and business accounts. It has a built-in document viewer which facilitates the viewing of

email attachments such as JPEG, GIF, TIFF, PDFs, PowerPoint, Excel, and Word files. Mobile

professionals can download the calendar, productivity, map, travel, and language apps to schedule

appointments, plan trips, track flights, hail taxis, and even communicate in foreign languages. Using

iOS20 operating system, the iPad can be linked to Twitter and Facebook accounts, enabling the

sharing of messages, pictures and videos. In other words, it is an adult toy. The device offers the

user numerous ways to pass time and be engaged.

iOS App Store launched in 2011

The Apple App Store is a digital distribution platform for mobile apps developed and maintained by

Apple. It houses more than 1.6 million apps, making it the second largest app store after Google Play

in 2015, downloadable either for free or a fee (Statista, n.d.a). By July 2015, Apple announced that

20 An operating system created and developed by Apple which powered the company’s mobile products such as iPad, iPod, and iPhone.

Page 19: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

18 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

100 billion apps had been downloaded from its App Store (Statista, n.d.b). A plethora of best-in-class

apps (Duffy, 2015) for games, business, education, lifestyle, and entertainment is available for free

download on the iPhone in the App Store. However, users are also willing to pay for apps that solve

inherent usage problem. For example, “Peace”, an app designed by Tumblr co-founder Marco

Arment, which strips away advertisements, cookies, and scripts on websites viewed via Safari took

the top position of the App Store's paid download list (Villapaz, 2015). Apple’s promotion of its own

apps through the “Top Charts” section of its App Store has facilitated its popularity. By allowing apps

like iMovie and those in its iWork21 suite to appear among the top 10 free apps on iPhone, Apple

encourages iPhone users to download them thinking that they are prevalent (Perez, 2015).

Furthermore, a lower cost levied on app developers regardless of their monetization model helps to

push out more apps for Apple mobile users. Apple took a 30 per cent cut on all revenue generated

through apps instead of the market norm of 50 per cent.

21 Refers to Apple Productivity Apps available in iOS and other platforms

Page 20: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

19 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

References

AboveAvalon. (2015, October 5). Apple Watch is being severely underestimated. Retrieved from

http://www.aboveavalon.com/notes/2015/10/5/apple-watch-is-being-severely-underestimated

Anderson, T. (2013, November 4). The second-mover advantage. Kellogg Insight. Retrieved from

http://insight.kellogg.northwestern.edu/article/the_second_mover_advantage

Apple website (n.d.). The watch reimagined. Retrieved from

http://www.http://www.apple.com/watch/watch-reimagined/

Barett, J. T. (n.d.). What are the functions of the iPad? Chron. Retrieved from

http://smallbusiness.chron.com/functions-ipad-55280.html

Beaumont, C. (December 28, 2009). Top 10 gadgets of the decade. The Telegraph. Retrieved from (http://www.telegraph.co.uk/technology/reviews/6839117/Top-10-gadgets-of-the-decade.html

Benjamin, J. (2014). Apple Watch design: 3 collections, 6 finishes, 18 bands, 2 sizes, 11 faces.

Retrieved from http://www.idownloadblog.com/2014/09/09/apple-watch-design-3-collections-6-

finishes-18-bands-2-sizes-11-faces/

Bitner, M.J. (1992). Servicescapes: The impact of physical surroundings on customers and

employees. Journal of Marketing, 56 (2), 57–71.

Boston Consulting Group. (2015). The most innovative companies an interactive guide. Retrieved

from

https://www.bcgperspectives.com/content/interactive/innovation_growth_most_innovative_comp

anies_interactive_guide/

Boxall, A. (2015, September 22). Apple Watch review (updated for OS 2.0). Digitrends. Retrieved

from http://www.digitaltrends.com/watch-reviews/apple-watch-review/

Bradshaw, T. (2013, July 14). Apple hires fresh talent for ‘iWatch’. Financial Times. Retrieved from

http://www.ft.com/intl/cms/s/0/0a3cbfce-ec0f-11e2-bfdb-00144feabdc0.html#axzz40NaoHry5

Burrows, P. (2006, September 24). Who is Jonathan Ive? Bloomberg Business. Retrieved from

http://www.bloomberg.com/bw/stories/2006-09-24/who-is-jonathan-ive

Burrow, P. & Kharif, O. (2013, March 5). Apple’s planned ‘iWatch’ could be more profitable than TV.

Bloomberg Business. Retrieved from http://www.bloomberg.com/news/articles/2013-03-04/apple-

s-planned-iwatch-could-be-more-profitable-than-tv

Cassella, D. (January 20, 2010). Best technology 2000-2010: The Decade in Tech. Digitrends. Retrieved from http://www.digitaltrends.com/apple/best-technology-2000-2010-the-decade-in-tech/2/

CBS News. (2014, September 9). Next chapter in Apple’s story: The Apple Watch. Retrieved from

http://www.cbsnews.com/videos/next-chapter-in-apples-story-the-apple-watch/

Page 21: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

20 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Covet, A. (2013, April 25). A decade of iTunes singles killed the music industry. CNN Money.

Retrieved from http://money.cnn.com/2013/04/25/technology/itunes-music-decline/

Cruikshank, J.L. (2006). The Apple way 12 management lessons from the world’s most innovative

company. New York: McGraw Hill.

Della C.M. (2014, September 10). Apple Watch features you maybe didn't know about. USA Today.

Retrieved from http://www.usatoday.com/story/tech/2014/09/10/apple-watch-iphone6-

communication/15397059/#

Deutschman, A. (2000). The second coming of Steve Jobs. New York: Broadway Books.

Duffy, J. (2015, April 15). 50 best free iphone apps for 2015. PCMag Asia. Retrieved from:

http://www.pcmag.com/article2/0,2817,2366274,00.asp

Duhigg, C. & Bradsher, K. (2012, January 21). How the U.S. lost out on iPhone work. The New York

Times. Retrieved from http://www.nytimes.com/2012/01/22/business/apple-america-and-a-

squeezed-middle-class.html

Fiegerman, S. (2012, August 13). Meet members of Apple's elite industrial design team. Business

Insider. Retrieved from http://www.businessinsider.com/meet-the-members-of-apples-elite-

industrial-design-team-2012-8?IR=T&r=US&IR=T

Frommer, D. (2009, June 19). 10 ways the iphone changed smartphones forever. Business Insider.

Retrieved from http://www.businessinsider.com/10-ways-the-iphone-changed-smartphones-

forever-2009-6/screen-centric-design-1?IR=T&r=US&IR=T#

Graham, L. (2015, July 8). Apple Watch online sales plunge 90% in US: Report. Retrieved from

http://www.cnbc.com/2015/07/08/apple-watch-online-sales-plunge-90-in-us-report.html

Halliday, J. (2011, October 6). Apple's top 10 products. The Guardian. Retrieved from https

http://www.theguardian.com/technology/2011/oct/06/apple-top-10-products

Haslam, K. (2016, January 29). Apple Watch review: A beautiful smartwatch, but not without its

downfalls. Macworld. Retrieved from http://www.macworld.co.uk/review/apple-watch/apple-

watch-review-specs-features-battery-uk-price-watchos-2-2016-3544044/

Heissner, K.M. (December 2, 2009). Top 10 gadgets of the decade. ABC News. Retrieved from http://abcnews.go.com/Technology/Decade/top-10-gadgets-decade/story?id=9217791

Hixon, T. (2014, April 10). What kind of person prefers an iPhone? Forbes. Retrieved from

http://www.forbes.com/sites/toddhixon/2014/04/10/what-kind-of-person-prefers-an-

iphone/#15b2725d3e5a

Isaacson, W. (2011). Steve Jobs: The exclusive biography. Retrieved from

http://books.google.com/books

Joho345 (June 27, 2015). File:Apps on Apple watch.jpg [Image]. Retrieved March 15, 2016, from https://commons.wikimedia.org/wiki/File:Apps_on_Apple_watch.jpg

Page 22: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

21 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Kahney, L. (2013). Jony Ive: The genius behind Apple’s greatest products. New York:

Portfolio/Penguin.

Kinni, T. (2013, December 18). How Apple built its design capability. Strategy + Business. Retrieved

from http://www.strategy-business.com/blog/How-Apple-Built-Its-Design-Capability?gko=4f963

LārlisDambrānbs.(January 27, 2014). File:Samsung Galaxy Gear smartwatch.jpg [Image]. Retrieved March 15, 2016, from https://commons.wikimedia.org/wiki/File:Samsung_Galaxy_Gear_smartwatch.jpg

Lashinsky, A. (2011). Inside Apple from Steve Jobs down to the janitor: How America’s most

successful – and most secretive – big company really works. New York: Fortune Books.

Lashinsky, A. (2012). Inside Apple how America’s most admired – and secretive – company really

works. New York: Business Plus, Hachette Book Group.

LGEPR File:LG (June 26, 2014). 전자, 세계 스마트워치 시장 본격 공략 - 14507399524.jpg [Image]. Retrieved March 15, 2016, from https://commons.wikimedia.org/wiki/File:LG%EC%A0%84%EC%9E%90,_%EC%84%B8%EA%B3%84_%EC%8A%A4%EB%A7%88%ED%8A%B8%EC%9B%8C%EC%B9%98_%EC%8B%9C%EC%9E%A5_%EB%B3%B8%EA%B2%A9_%EA%B3%B5%EB%9E%B5_-_14507399524.jpg Lockhart, K. (2014, September 9). Apple Watch launch: Tim Cook says it's 'the most personal device

we've ever created'. The Telegraph. Retrieved from

http://www.telegraph.co.uk/technology/apple/11085827/Apple-Watch-launch-Tim-Cook-says-its-

the-most-personal-device-weve-ever-created.html

Mactech.(n.d.). Study looks at demographics of iPhone, iPod touch users. Retrieved from

http://www.mactech.com/content/study-looks-demographics-iphone-ipod-touch-users

Miles, S. (2015, September 21). Apple Watch review: 5 months with Apple's smartwatch. Pocket-lint.

Retrieved from http://www.pocket-lint.com/review/133795-apple-watch-review-5-months-with-

apple-s-smartwatch

Newman, L.H. (2015, April 8). This Apple Watch feature is supposed to be fun but just turned out

creepy. Future Tense. Retrieved from

http://www.slate.com/blogs/future_tense/2015/04/08/animated_emojis_on_the_apple_watch_are

_creepy.html

O'Brien, C. (2015, October 27). Tim Cook says Apple Watch sales are still growing. Venture Beat.

Retrieved from http://venturebeat.com/2015/10/27/tim-cook-says-apple-watch-sales-are-still-

growing/

Panazarino, M. (2012, January 24). This is how Apple’s top secret product development process

works. Retrieved from http://www.statista.com/statistics/276623/number-of-apps-available-in-

leading-app-stores/

Pebble Technology. (n.d.). File:Pebble watch trio group 04 square crop.png [Image]. Retrieved March 15, 2016, from https://commons.wikimedia.org/wiki/File:Pebble_watch_trio_group_04_square_crop.png

Page 23: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

22 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Perez, S. (2015, December 15). Apple continues to showcase its own apps in the App Store’s top

charts. Techcrunch. Retrieved from http://thenextweb.com/apple/2012/01/24/this-is-how-apples-

top-secret-product-development-process-works/#gref

Pierce, D. (2015, May). iPhone killer: The secret history of the Apple Watch. Wired. Retrieved from

http://www.wired.com/2015/04/the-apple-watch/

Pierini, D. (2015, December 17). Apple Watch’s dominance isn’t slowing down any time soon. Cult of

Mac. Retrieved from http://www.cultofmac.com/402408/apple-watchs-dominance-isnt-slowing-

down-any-time-soon/

PricewaterhouseCoopers. (2014, October 21). Wearable technology future is ripe for growth – most

notably among millennials, says PwC US. Retrieved from http://www.pwc.com/us/en/press-

releases/2014/wearable-technology-future.html

Pogue, D. (2015, April 25). The Apple Watch: Half computer, half jewelry, mostly magical. Yahoo

Tech. Retrieved from https://www.yahoo.com/tech/the-apple-watch-half-computer-half-jewelry-

115815015484.html

Raysonho (October 1, 2014). File:Moto360Cropped.JPG [Image] Retrieved March 15, 2016, from (https://upload.wikimedia.org/wikipedia/commons/0/0d/Moto360Cropped.JPG

Reuters. (2013, February 10). Apple experiments with devices similar to watches – NYT. Retrieved

from http://www.reuters.com/article/apple-watch-experiment-idUSL1N0BA2TI20130210.

Ringel, M., Taylor, A., & Zablit, H. (2015, December). The most innovative companies 2015: Four

factors that differentiate leaders. Boston Consulting Group. Retrieved from https://media-

publications.bcg.com/MIC/BCG-Most-Innovative-Companies-2015-Nov-2015.pdf

Segan, S. (2015, March 10). Who will buy the USD10,000 Apple Watch? PCMag Asia. Retrieved from

http://asia.pcmag.com/wearable-tech/2097/opinion/who-will-buy-the-10000-apple-watch

Smartwatch. (n.d.a.). Overview of the smartwatch industry. Retrieved from

http://www.smartwatchgroup.com/overview-smartwatch-industry/

Smartwatch. (n.d.b.). Top 10 smartwatch companies 2014 (Sales). Retrieved from

http://www.smartwatchgroup.com/top-10-smartwatch-companies-sales-2014/.

Smartwatches and smart bands dominate fast-growing wearables. (2014, August). CCS Insight.

Retrieved from http://www.ccsinsight.com/press/company-news/1944-smartwatches-and-smart-

bands-dominate-fast-growing-wearables-market

Smith, J. (2015, December 29). 5 reasons the Apple Watch Sport is better. Retrieved from

http://www.gottabemobile.com/2015/12/29/5-reasons-the-apple-watch-sport-is-better/

Statista.(n.d.a). Number of apps available in leading app stores as of July 2015. Retrieved from

http://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/

Page 24: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

23 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Statista. (n.d.b). Cumulative number of apps downloaded from the Apple App Store from July 2008

to June 2015 (in billions). Retrieved from http://www.statista.com/statistics/263794/number-of-

downloads-from-the-apple-app-store/

Stein, S. (2015, July 15). Apple Watch review: Beautiful, bold watch, with some complications. CNET.

Retrieved from http://www.cnet.com/products/apple-watch/

Stroud, F. (n.d.). Apple iWatch. Webopedia. Retrieved from

http://www.webopedia.com/TERM/A/apple_iwatch.html

Swanner, N. (2015, January 22). Apple Pay may see big uptake in 2016 if rumored features arrive.

Retrieved from http://thenextweb.com/apple/2016/01/22/apple-pay-may-see-big-uptake-in-2016-

if-rumored-features-arrive/#gref

The 100 best gadgets of the complex decade. (April 18, 2012). Complex Magazine. Retrieved from

http://www.complex.com/pop-culture/2012/04/the-100-best-gadgets-of-the-complex-decade/

The 20 best gadgets of the decade (2000-2008). (November 21, 2009). Paste Magazine. Retrieved from http://www.pastemagazine.com/blogs/lists/2009/11/the-20-best-gadgets-of-the-decade-2000-2009.html

Trevlos, D. (2013, February 26). Importance of being a platform (Apple, LinkedIn, Amazon, eBay,

Google, Facebook). Forbes. Retrieved from

http://www.forbes.com/sites/darcytravlos/2013/02/26/importance-of-being-a-platform-apple-

linkedin-amazon-ebay-google-facebook/#2715e4857a0b703a14531f20

Tynan, D. (n.d.). The 50 greatest gadgets of the past 50 years. PC World. Retrieved from

http://www.pcworld.com/article/123950/the_50_greatest_gadgets_of_the_past_50_years.html)

Villapaz, L. (2015, September 17). iOS ad-blocking apps top Apple Inc.'s App Store paid list shortly

after ios 9 launch. IBTimes. Retrieved from http://www.ibtimes.com/ios-ad-blocking-apps-top-apple-

incs-app-store-paid-list-shortly-after-ios-9-launch-2101870

Weiss, T. R. (2016, February 3). Fitness trackers contribute big time to doubling of wearables

spending. Retrieved from http://www.eweek.com/mobile/fitness-trackers-contribute-big-time-to-

doubling-of-wearables-spending.html

Woollaston, V. (2013, July 31). What does your phone say about you? iPhone owners are vain,

BlackBerry users earn more and Android owners drink the most. Mail Online. Retrieved from

http://www.dailymail.co.uk/sciencetech/article-2381845/iPhone-owners-vain-BlackBerry-users-

earn-Android-users-drink-most.html

Woollaston, V. (n.d.). Will the Apple Watch flop? Analyst drops sales predictions by 3 million as

figures suggest it's as popular as the iPod. Daily Mail. Retrieved from

http://www.dailymail.co.uk/sciencetech/article-3147047/Will-Apple-Watch-flop-Analyst-drops-

sales-predictions-3-MILLION-figures-suggest-s-popular-iPod.html

Page 25: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

S/N 88-16-003

24 | P a g e

Apple Watch- Setting the Next Consumer Lifestyle Trend

Nanyang Technopreneurship Case Centre (NTCC)

Yarow, J. (2015, May 1). There is ‘lackluster interest’ in the Apple Watch, says UBS. Business Insider,

Singapore. Retrieved from http://www.businessinsider.sg/ubs-on-the-apple-watch-2015-

5/?r=US&IR=T#.VrAqzk1f2Uk.

Yu, H.Y. (2015, July 29). Apple said to lease office space in Seattle Tower. Bloomberg Business.

Retrieved from http://www.bloomberg.com/news/articles/2015-07-20/apple-said-to-lease-office-

space-in-seattle-tower

Page 26: "Setting The Next Consumer Lifestyle Trend" by Khoo Hong Meng

About Nanyang Technopreneurship Case Centre

With funding from both the National Research Foundation of Singapore and Nanyang Technological

University, the Nanyang Technopreneurship Case Centre (NTCC) was one of the initiatives of the

Nanyang Technopreneurship Centre (NTC) to enhance the quality of entrepreneurship education

through the case pedagogy. These are part of NTC’s efforts to foster, promote and nurture

enterprising mind-sets, skills and knowledge in entrepreneurship education.

There is a plethora of business cases but a general paucity of cases highlighting the specific problems

faced by technopreneurs in growing their ventures. NTCC adds value to Technopreneurship

education by developing a pool of cases on technology-based local and international enterprises.

Through the cases, NTCC hopes to share the experiences, success stories and challenges faced by

entrepreneurs/intrapreneurs in growing their organisations and how they overcome their problems

to sustain growth.

The theme of this first compendium is “innovation through technology”. It features Singapore-based

and global companies confronting issues and challenges due to technological shifts in the industry

and changing market and competitive dynamics; when introducing new products in the marketplace;

and in using technology to drive organizational change.

Online versions of these cases are available for complimentary downloads at

www.ntc.ntu.edu.sg/ntcc .

Teaching notes are also available to faculty members for use as reference, reading and/or teaching

materials in various academic and professional programs. For further information, please contact

Ms. Denise Lee ([email protected]) and Mr. Wu Chong Chuan ([email protected]).

Acknowledgment

The Nanyang Technopreneurship Case Centre (NTCC) was supported by the National Research

Foundation (NRF) and the Nanyang Technological University (NTU). We would like to thank NRF and

NTU for their funding support.

We would also like to show our gratitude to all the writers, reviewers and anyone who have

contributed to the accomplishment of the NTCC.