Apple debuts watch discounted to $279, but no new iPhones … yet
SAN RAMON, Calif. (AP) — Apple introduced a cheaper version of its smartwatch, its latest attempt to broaden the appeal of its trend-setting products while many consumers are forced to scrimp during the coronavirus pandemic.
The scaled-down Apple Watch follows on the heels of a budget iPhone
the company released five months ago as the economy cratered and
unemployment rates rose above the levels reached during the Great
Recession more than a decade ago.
Apple also took the wraps off a
new high-end watch model, a next-generation iPad and a couple of new
subscription services during a virtual event held Tuesday. The company
normally also rolls out its new iPhones at this time of year, but
production problems caused by the pandemic have delayed their release
until at least October.
CEO Tim Cook didn’t mention iPhones during Tuesday’s one-hour presentation recorded at the company’s massive, but now mostly empty, headquarters in Cupertino, California.
The
Apple Watch has never come close to rivaling the iPhone’s popularity,
but it does dominate the market for smartwatches. Canaccord Genuity
analyst T. Michael Walkley estimates about 51 million Apple Watches will
be sold this year, a 5% increase from last year. The research firm
GlobalData pegs Apple’s share of the $64 billion smartwatch market at
roughly 60%.
The new discount model, called the Apple Watch SE,
will sell for $279 and be available beginning Friday. The price is a
markdown from the $399 that Apple is asking for the next version of its
higher end watch, the Series 6. Apple watches have been selling for an
average of $377, based on Walkley’s calculations.
Apple added more
features to help the watch monitor its owner’s health, including a
sensor that can read blood oxygen levels. The feature, specific to the
Series 6, could be timely, given that COVID-19 frequently attacks the
lungs.
Apple also announced a new fitness subscription service
tailored for its watches for $10 per month, as well as a new option that
will bundle its existing music, video, news and gaming services into a
package that will cost $15 to $30 per month.
Tens of millions of
people already subscribe to Apple’s various services, helping the
company double its revenue during the past four years within a division
that creates products for the more than 1 billion iPhones, iPads,
watches and other devices that the people already use.
The services division also includes Apple’s app store, which is under regulatory scrutiny for charging a commission of up to 30% for products sold through other companies who have no other option but to use the store to reach the mostly affluent consumers who buy iPhone products.
