“With the Samsung and Qualcomm watches officially unveiled, the elephant in the room is now Apple,” Jason Schwarz writes for TheStreet.
“Samsung’s attempt at a watch is destined to fail because it lacks a ‘must have’ application that differentiates it from a smartphone,” Schwarz writes. “It won’t be easy to find a target market willing to pay $299 for mirrored functionality between the two devices. Apple will experience a similar fate if it chooses a similar approach to the iWatch.”
Schwarz writes, “To our knowledge, there has never been a watch that sold more than a few million units in a quarter. Apple needs to grow this new product category into 20 million units per quarter if it hopes to move the needle. If Tim Cook and company are serious about creating a viable new product category, then the following three elements are essential:”
1. iWatch should do something that iPhone doesn’t do.
2. iWatch should do something that that is enhanced by the wrist security.
3. iWatch should have so much high tech built into it that the product costs $400 or more and is sold with a subsidy.
Schwarz writes, “Without these three elements, the iWatch is at risk of becoming a negative catalyst for the stock.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]