Apple’s Entry Into Watch Segment

Watch Industry Statistics

Number of watches sold annually worldwide 1,200,000,000

Number of smartwatches sold in 2014 6,800,000

Average price of a smartwatch sold in 2014 $189

Number of Swiss Watches sold annually 29,200,000

Number of watches produced by China annually 663,000,000

Average cost of a Swiss watch $739

Average cost of a China watch $3

Switzerland watch market share in terms of value 54 %

Source: http://www.statisticbrain.com/wrist-watch-industry-statistics/

http://www2.deloitte.com/ch/en/pages/consumer-business/articles/swiss-watch-industry-study.html

http://www2.deloitte.com/ch/en/pages/consumer-business/articles/swiss-watch-industry-study.html

Proportion of consumers likely to buy a smartwatch/classical wristwatch in the next 12

Months

China Italy US France Japan Switzerland0%

10%

20%

30%

40%

50%

60%

70%61%

48%

35%31%

24%

17%

35%40%

33%

41%

34%28%

Smartwatch Classical Wrsitwatch

http://www2.deloitte.com/ch/en/pages/consumer-business/articles/swiss-watch-industry-study.html

What made apple think of a watch?

Looking into some common problems• Your phone is ruining your life.• constant checking, the long list of nagging

notifications•People are carrying their phones with them and

looking at the screen so much

How Apple wanted to deal with a problem?•What if you could make a device that you wouldn’t—

couldn’t—use for hours at a time? •What if you could create a device that could filter out

all the bullshit and instead only serve you truly important information? •Apple, in large part, created our problem. And it

thinks it can fix it with a square slab of metal and a Milanese loop strap.

Questions coalescing around the idea of a watch:

•What could it add to people’s lives?

•What new things could you do with a device that you wear?