“As Apple prepares to unleash Apple Watch on yet another unsuspecting industry, analysts such as Morgan Stanley’s Katy Huberty are busy upping their estimates for Apple Watch sales,” Mark Hibben writes fro Seeking Alpha. “Meanwhile luxury watchmaker Tag Heuer, part of the LVMH Group (OTCPK:LVMHF) has announced plans for a smart watch, which supposedly involves new partnerships and possibly acquisitions.”
“For Tag Heuer, and anyone else trying to jump on the smart watch bandwagon at this juncture, it will be too late,” Hibben writes. “Due to its superior systems integration expertise, Apple Watch will achieve huge advantages in usability compare to its competition.”
“Apple’s systems integration expertise, which has worked so well to integrate the hardware and software of individual devices, is now being applied to integration between devices,” Hibben writes. “Because Apple controls the hardware and software on both ends of the data link between the Apple Watch and iPhone, it can assure that communication between the devices is seamless and effortless for the user.”
“This will prove absolutely essential to the market success of such devices,” Hibben writes. “Competitors such as Android Wear or even Microsoft’s Band, which aspire to broad compatibility, will inevitably fail to achieve the integration necessary for a truly satisfying experience. The pastiche of hardware and software that is Android will founder on the rocks of systems integration.”
“By making it so easy for iPhone developers to build Apple Watch apps, Apple has assured it will have a large vibrant app ecosystem for Apple Watch virtually overnight,” Hibben writes. “As we have seen with mobile devices, the health of the app ecosystem is often critical for the success of the device. Here, Apple will quickly outpace its nearest rival, Android, while leaping far ahead of any other competitors.”
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