Why was the Apple Watch successful? Apple's brand strategy as seen through the Apple Watch Ultra

Masakazu Honda is a journalist who is well-known in the technology field. In this series, Honda writes about wearable devices. In this article, he will use the previous Apple Watch models and the latest Apple Watch Ultra as examples to explain how Apple has achieved success through branding in the watch market. The key is specialization.

apple watch ultra

apple watch ultra
GPS + Cellular model. S8 SiP (64-bit dual-core processor). Rechargeable lithium-ion battery. Power reserve: approximately 36 hours. Ti (49mm x 44mm, 14.4mm thick). Water resistant to 100m.
Text by Masakazu Honda
Text by Masakazu Honda
Article published on December 15, 2022

 Since its release, the Apple Watch has remained the number one smartwatch for seven consecutive years. While the concepts of smartwatches and wearable devices existed before the Apple Watch, it's fair to say that it was Apple that actually created the market.

 That's not to say there are no complaints about the product.

 However, no one would argue that the Apple Watch has had a major impact on the market, appealing not only to consumers who enjoyed wearing wristwatches, but also to a generation that no longer needed wristwatches due to the spread of mobile phones, and in the sense that it has made people aware of the value of wristwatches beyond their basic function of telling the time and date.

 On the other hand, the Apple Watch, which has been creating the market for the past seven years, has been an extremely neutral and understated product with each improvement, converging into a simple yet functional product, like Steve Jobs's favorite style of combining a black turtleneck designed by Issey Miyake with Levi's 501s.

 Some may be critical, asking what traditional watchmakers have been doing during this time, and why they've allowed Apple to take the lead, but it seems that Apple itself has had its share of twists and turns in the branding of the Apple Watch.

ティム・クック

Tim Cook announced the Apple Watch Series 3 in September 2017, stating that annual sales of the Apple Watch would surpass those of Rolex.


The obstacles Apple Watch faced and the challenge of building a brand

 Apple's preference for neutral-toned designs isn't limited to the Apple Watch. I see it as a basic design strategy for Apple. If you use this strategy to enhance your product's appeal with personal computers, smartphones, or tablet devices, you can dominate the market.

 These devices have their own unique usage styles, installed applications, and ways of using them, and are relatively less fashionable. However, when it comes to creating an information terminal in the style of a "watch," personal preferences also come into play.

 Until now, when traditional watch makers and fashion brands have ventured into the world of smartwatches, they have often done so through fashion. However, they face significant challenges ahead, and Apple is no exception.

 The first Apple Watch surprised everyone with its lineup of 18K gold cases with the sub-brand "Edition." Later, the Edition was changed to a molded ceramic case, but even they realized that "differentiating by case finish" was difficult in the world of smartwatches.

Gold Apple Watch

The first Apple Watch Edition featured an 18K gold case. It was a luxury model with a retail price of over 200 million yen, but this was the last edition to feature the 18K gold case.

 In the first two or three generations, Apple decided that it could expand the market by customizing the Apple Watch for health and exercise habits, and in the sixth generation it took on the challenge of offering a high-end, lightweight model with a titanium case, but its main model has since converged on the aluminum case model.

 Of course, the existence of the stainless steel case model and the collaboration model with Hermès cannot be ignored, but Apple itself must have felt the difficulty of creating a brand while keeping the basic hardware of the Apple Watch intact, which is "easy for everyone to accept," "has various angles," and "is a neutral product in every aspect."


Apple realizes why people don't choose the Apple Watch

 If you're serious about running, are into golf, or enjoy outdoor activities like trails and hiking, the Apple Watch offers convenient features, but if you're into that sort of thing, you'll probably be interested in Garmin watches.

 If you're a runner who is more fitness-oriented or who prioritizes multi-day training plans that take physical fatigue into account, I might recommend the Polar.

 In the world of sports watches, functions are specialized for each genre, so a "do-it-all" smartwatch, like the Apple Watch, which is a casual, standard watch like a T-shirt and jeans, is not enough.

Approach S62

Garmin Approach S62 Black
This is a golf-specific smartwatch from Garmin. It combines GPS and map data to provide course conditions and select the best club based on your playing habits and wind direction. It's rechargeable lithium-ion (USB connection). It lasts up to 14 days in smartwatch mode and 20 hours in GPS mode. It's made of ceramic (47mm diameter, 14.8mm thick). It's water resistant to 50m. It's priced at 81,800 yen (tax included).

 No, in fact, if you ask whether it's not enough, the majority of users can get the information and functions they need with the Apple Watch. However, when there is a genre that you want to pursue, the feeling that "I want to aim for more" will arise.

 IWC created pilot's watches, Breitling provided chronographs and slide rules to a variety of professionals, and Blancpain developed watches to protect the health of scuba divers, and their brand value was created as ordinary users demanded them.

 The product that has the greatest business significance for Apple is the Apple Watch SE, a hidden bestseller with more units shipped annually than the iPhone (iPhone SE series), which is the most widely shipped iPhone.

 But why are people who don't buy the Apple Watch choosing it despite its hidden bestseller status? The answer lies in the customer segment that doesn't buy the iPhone SE or any of the iPhone models in the number series, even though the iPhone lineup has expanded.