Tuesday, September 9, 2014

Apple Watch: Creative Destruction?

Apple introduced the Apple Watch, a timepiece that runs several apps such as calendar, messaging, phone, email, fitness, maps, etc. merging multiple technologies including crystals, display, accelerometer, GPS, wireless, microprocessor, touch sensors, LED sensors, and charging technology, all packaged in an innovative and attractive wristband.

Apple's CEO Tim Cook introduced the Apple Watch by first introducing its biggest invention; the Digital Crown. He compared the introduction of the Digital Crown to the introduction of the PC mouse, the iPod click wheel, and the iPhone touch screen: The Digital Crown lets you get your apps in the watch like the mouse lets get your programs in your computer.

The big question is:
  • Will this beautiful product create a new industry and destroy an old one?
  • Do you think the Apple Watch will destroy the traditional watch industry?
The watch industry is already negatively impacted by cell phones. Many people don't use a watch to tell the time, many look at their cell phones. This trend started with the first generation cell phones. Not everyone carries a watch anymore.

But that does not mean the watch industry is being destroyed by the cell phone industry. And maybe the Apple Watch will actually bring new life to the watch industry.

My answer to the first question is no: The Apple Watch is not a product that will destroy the watch industry. However, this is a product that will TRANSFORM it. The watch industry has evolved over time. This new product will represent a big evolution. People will continue to put a piece of jewelry on their wrists to tell time and a lot more. In fact, the Apple Watch will enhance the watch industry, not destroy it.

Maybe Tag Heuer, Rolex, and Omega will introduce similar technologies one day.

Maybe this is a case of creative reconstruction!

References:
Apple Live Event, 9-Sep-2014: http://www.apple.com/live/2014-sept-event/
Apple Watch: http://www.apple.com/watch/

1 comment:

  1. Consider the length of the Product Life Cycle. Interestingly, Apple discontinued the iPod Classic the same week they announced the iPhone 6 and Apple Watch. Reference: http://www.cnet.com/news/apple-says-goodbye-to-the-ipod-classic/

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