I was reading an article by Gracia Chua “Gone are the Fruity Days” about Apple’s brand recognition, through its value propositions they offer through their products as well as its innovations. She argues that their recent product innovations of iPhone 5c’s may have diminishes Apple’s brand cache, an argument which I agree. What about Samsung, Apple’s main rival in the technological industry? Innovation seems to work for Samsung. But does it really?
Aside being one of the leading brands in the smartphone market, Samsung determines itself to be the first in making everything, not only smartphones – wrist watches!
With a simplistic design and industrial look, the smartwatch comes as a ‘companion device’ with Samsung smartphones, Galaxy Note and its other devices, with a lot of apps and features almost similar to the smartphones.
It is projected that 36 million smartwatches are going to shipped by 2018, and the industry says credit suisse will be $15 billion.
However, looking at society’s demand towards the significance of watches in their daily lives, would the smartwatch catch on?
People have put into habit of looking at their phones to look at the time, and do almost everything possible with their smartphones. Checking time with watches may be considered to be a habit of only small group of people. Additionally, people are almost always constantly on their phones.
In making their decision, Samsung would have to consider the likelihood of society’s demand or if consumers would forgo the product. If later on in 2018, the demand does not give a proportionate rate of return than expected, Samsung would have to face a great deal of $15billion loss. Smartwatch may be a big success if they can somehow persuade non-wearers of watches to become one.
Work Cited:
“Will Smartwatches Be a Hit? -Video.” CNNMoney. Cable News Network, n.d. Web. 03 Oct. 2013. <http://money.cnn.com/video/technology/2013/09/03/n-soares-uk-smartwatch.cnnmoney>.