Analyst gives a funny but telling reason he's worried about the Apple Watch
The Apple Watch may be one of the nicest, if not the nicest, smartwatch yet, but it seems more like a niche product than a must-have product.
That's exactly how the analysts at UBS see the Apple Watch, and the firm summed up this concern with one line in its recent report:
"We also worry because our kids aren't whining to get one," the report says.
The analysts believe that demand for the Apple Watch is questionable:
"Clearly the main advantages relate to convenience, which makes the Watch a nice but not a must-have like the iPhone," says the report, which was written by UBS analysts Steven Milunovich and Peter Christiansen.
That could change in the future, though. Right now, the Apple Watch may not be a necessity because, as UBS notes, its use cases are based on convenience rather than offering a completely new experience.
Its main purpose is to forward messages, alerts, and notifications from your phone to your wrist so that you don't have to take out your iPhone as much. There are some new things you can do with the watch that you wouldn't be able to do with an iPhone (i.e. sending your heartbeat to another watch wearer), but for the most part, it's designed for convenience.
However, UBS believes that the watch may become more of a necessity as Internet of Things devices become more popular. The Internet of Things is a term used to describe "smart" household objects and appliances. The Nest Learning Thermostat, for example, would be considered an Internet of Things device since you can control it with your smartphone and it can automatically adjust the temperature in your home when necessary. There are tons of devices like these, from "smart" light bulbs that you can manipulate from your phone to Internet-connected washing machines.
UBS also thinks the Apple Watch will appeal more to those who don't already own a watch or to watch owners that buy different watches for different occasions.
The Apple Watch, which officially launched on April 24, starts at $349 for the basic Sport model with the most expensive model costing up to $17,000. Apple sold out of the watch with some orders pushed back to June immediately following preorders, which kicked off on April 10. But, UBS notes that they received their watch earlier than expected, which suggests that Apple is catching up with demand.