We believe that Apple Watch’s aesthetic and fashionable look will attract customers who have long left the habit of wearing watches.Īpple is offering three customizable editions of the Watch, a feature that none of the other smartwatch maker’s currently offer. The company hired executives from Tag Heuer, Burberry and Yves Saint Laurent who developed the sleek look of the device. customers to purchase a device over the next five years.Īs compared to other smartwatch makers, Apple’s loyal customer base is a huge advantage.

The report published in August expects one out of four U.S. The Wall Street Journal recently quoted a study from Accenture’s Acquity Group that expects the smartwatch market to grow fast. This is expected to further grow to 112 million in 2018. Per market research firm IDC, 2014 worldwide shipments of wearable computing devices will increase threefold to 19 million units from the 2013 level. However, we believe that Apple’s entrance into the market will help the wearable technology go mainstream and eventually expand in the long run. Some of them have been successful enough in building a niche customer base. To date, many of these companies have launched smartwatches with multiple designs. ( INTC) are also collaborating to develop wearable technology.

The wearable market is getting spicier with major tech players like Samsung, Motorola, Sony and LG Electronics showing significant interest in developing new gadgets. We expect a glitch-less debut for Watch, which will further drag down share price of these watchmakers. The iPhone maker is expected to ship Watch in early 2015. Year-to-date, Movado and Fossil have declined approximately 17.7% and 13.1%, respectively, compared with Apple’s 24% jump in share price. However, the news did not bode well for watchmakers Movado Group ( MOV) and Fossil Group ( FOSL), whose share price declined 1.9% and 2.1%, respectively. ( AAPL) finally unveiled its much-anticipated “Watch” on Sep 9.

Doom for apple watch