Five years after launching the iPad Apple (NASDAQGS:AAPL) has finally launched the Apple Watch at a function in San Francisco. With supermodel Christy Turlington providing the glamour, Apple announced the watches will be wrapped in aluminium, stainless steel or gold and available in two sizes with various band options.
The ho hum reaction so far isn’t surprising, as rival smart watches made by Samsung (KOSE:A005930), LG (KOSE:A066570) and Motorola haven’t been popular. With the Apple Watch providing many of the same features as the iPhone, Apple may not be able to convince you that spending at least $499 is worth it to save you the trouble of reaching into your pocket to check your phone. The fact that they’ll also draw a lot of attention means they certainly won’t be for everyone.
Apple is selling its watch at higher prices than its competitors, and the falling Aussie dollar means Australians will have to fork out even more for the version of their choice. Nevertheless, Apple’s legion of followers and features such as Apple Pay means the company will probably sell millions.
Even if the launch is a financial success it won’t move the needle for Apple’s profits due to the supremacy of iPhone sales, but it’s one more gadget that keeps Apple customers loyal. Given Apple’s share price has increased 68% over the past year shareholders will need to launch something more ubiquitous for the company to stretch its lead as the world’s most valuable company.