The new Apple watch is not just another entry of an improved product into the market; it is a GAME CHANGER.
Apple has introduced a number of significant changes that point toward interesting directions of development, which will have an impact on the entire market.
The independence of the watch
A prominent asset is reflected in the transformation of the watch into an independent entity, through a direct connection in the form of a separate identification number to the cellular network (registered as a telephone number, in parallel with its association to the existing telephone number of the iPhone owner to the cellular network).
This step has several meanings:
1. Routine connection of the watch to different Cloud services without being dependent on the phone, so that different apps and services can reside in the Cloud and provide real-time services to the watch.
2. The watch's operating environment provides an independent platform, calling for various dedicated developments and services that can be added in the future to enhance the platform and keep it up-to-date.
3. The watch as part of a security blanket (family setup service) - an end unit that collects data and transmits it in real time to Cloud storage. In this case, it is intended for the parents to track the whereabouts of their children.
This device has promising potential for broader and more advanced remote and monitoring services.
Adding a Saturation Unit
The addition of this type of sensor, which is perceived on the market as a medical device, has several meanings:
1. Perception of the sensor’s market as a development center for new technologies that will be assimilated on the chipset and not as an external accessory (this is how the first GPS and heart rate monitor actually started). With the implementation of the sleep and motion sensor in the past, and now a saturation unit, the watch is fast becoming a platform for many built-in sensors. This eliminates the connectivity that previously existed via Bluetooth and Ant+ protocols to the phone.
2. Although current uses of a saturation unit for home audiences are uncommon, they open the door for new insights by using artificial intelligence and cross-linking between classic performance data (motion, velocity) and effect data - the effect of motion on physiological processes in the body and new monitoring methods.
Fitness + monthly service
A very interesting business move – a way for Apple to differentiate itself from all other health and sports watch manufacturers. While the watch is a "highly sophisticated iron,” in the end, the cost of purchasing it is separate from the health and sports services it provides. These will now be provided for an additional fee.
This monthly fee model is the first of its kind among all sports watch manufacturers. It places Apple as a significant player in a new market, providing added value of lifestyle and sports services that can be purchased. Such a service is perceived as premium and has commercial potential for further markets. Until today, the almost exclusive player in the field is Peloton, a company that manufactures home fitness equipment. Beyond the purchase of the device, Peloton incorporates in its business model income from selling a monthly subscription to various training and content services.
Short and long term effects on our market
1. The development of sensors accelerates the development processes of algorithms. Since watch is becoming a main platform, Solutions and services should be built according to market place concept, which will give variety of options for the different watches, According to the manufacturer vision. The direct channel between the cloud and the cellular base watch open real time complicated apps.
2. The obvious difference between medical and fitness device is being minimized. Algorithms that has been built to improve medical processes are now can and will be implemented into fitness devices, and will create a holistic POV on the fitness and form procedures. The wearable medical devices are starting to lose their advantage, and will look for new opportunities to stay relevant.
3. Revenue models uses pay-per-use transaction-based billing and is based on the understanding that the added value of the service to the end customer is worth the additional monthly cost. This is the first time that a smartwatch company is creating a revenue model for services after the acquisition, as it continues to develop a true added value. In doing so, Apple differentiates its watch from other competitors.
4. BioGradient's first algorithm is the autonomous digital trainer, the result of 4.5 years of research. The significant innovation of Apple in the new watch indicates the understanding that the users expects innovations and developments in physiological aspects, the improvement of health conditions and the enhancement of quality of life.
5. These conclusions are not only for Apple customers; other technology giants cannot afford to be left behind. Although our current focus should be on developing for the WatchOS7 environment, in the near future we will be able to offer significant value to other companies: Sensor manufacturers, Smartwatch companies, Fitness and sport products companies and others. These companies will be obliged to invest huge resources in order to stay at the front line.