Apple Watch is now ranked 13th having replaced key watchmakers
Apple Inc. (NASDAQ:AAPL) marked itself as a successful crossover brand that made to the luxury market with almost similar products as its competitors. Apple Watch Edition managed to position itself as the prime choice for the affluent class and competed directly on par against luxury watchmakers including Rolex. With handmade Hermès leather straps exquisitely crafted in France and 18-karat gold case models, it was predetermined to be adorned by a large number of luxury buyers.
According to analytics firm NetBase, Apple Watch not only occupies the top position in smartwatch category, but also toppled century- old brands that target the luxury niche. Apple’s wearable product stood at number 13, while Rolex came in at 14th position, on the based on luxury brand sentiment across numerous social media forums. However, Apple Watch is still far from Rolex in terms of brand loyalty, NetBase reported.
Apple Watch and the iPhone came in at number 4 and number 11 respectively, on a list of luxury global brands. The iPad is no more considered a luxury brand and has dropped out of the list, although it consecutively occupied high ranks in previous lists. Even then, Apple managed to fill three positions in the list of luxury brands. It seems Apple is not only a crossover brand, but each of its product is a brand in itself. Many old companies have not been able to achieve this. Although Chanel, Gucci, and Hermes secured the first three positions in the list of global luxury brands by social mentions, none could have a particular product make it to the same.
According to market research firm Albatross, people who buy luxury watches are predominantly admirers of timelessness and craftsmanship. However, Apple Watch buyers come in with mind to buy a piece of technology. Apple certainly is artistic, but it still has a few miles to cover before it transforms into a complete luxury brand.
The Apple Watch may become obsolete in the near future, as watches such as Rolex, Omega, and Tag are priceless. If you decide to gift someone a Rolex, its value and the sentiment attached to it will remain afresh even twenty years down the line. However, in twenty years, the first generation Apple Watch will be a relic from the past.
If someone buys the Apple Watch Edition for $17,000, the Watch’s hardware is set to become obsolete within the year. While the 24-karat gold may hold its value, this raises questions as to how Apple will present the upgrade. There’s little doubt that customers will not be happy with an upgrade this early, and they may dump the Apple brand for something close to a Rolex. Apple’s smart watch may always hover just at the verge of attaining the status of a luxury and eternal timepiece because of its refresh cycles, that will work against it.
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