The Apple Watch will bring more and more smartphone shoppers to the iPhone. The trend has already begun and will continue for the foreseeable future. Apple already does well with the iPhone, holding around half the US market for smartphones. However, it is significantly behind Android in terms of the worldwide share.
The various price tiers and expanded range of sizes introduced recently means Apple isn't satisfied to wait for new users to arrive. Apple is making efforts to gain new iPhone owners and keep existing users loyal. One of the best ways it is doing this is by differentiating its offerings from competing products. The iPhone became known for its speed, reliability and integration with any and all Apple products. That has done a magnificent job of separating it from Android phones, until recently. As tech specs improve, every manufacturer is struggling to keep up with the frantic pace of advancement. Apple seems to have lost some ground regarding the iPhone camera, which is considered by many to be falling behind the competition. Samsung, Huawei and Google are often cited as having the best camera, whether by virtue of hardware or software. As more competition arrives, Apple has responded with the low cost iPhone SE and unmatched LiDAR technology in the iPhone 11 Pro and Pro Max. That's not all, though. Apple has more tricks up its sleeve.
All Apple products are designed to work well together. Hand-Off, Universal Clipboard and Instant Hotspot are part of a set of integration features that Apple calls Continuity and they really simplify work and life in general. The Apple Watch takes that convenience and makes it a necessity. Even with a cellular-enabled Apple Watch, an iPhone is needed for setup and some features require an iPhone. There is still no Apple Watch app for Android and this forces anyone interested in an Apple's wearable to own its smartphone as well. Apple recently opened up this lockdown a little, but only for families that own at least one iPhone. Family Setup is still quite restrictive. For example, contacts for email, phone and messages must be added on the iPhone before they can be used from the Apple Watch.
Apple Watch To Further Fuel iPhone Popularity
The Apple Watch has become the most popular watch in the world, selling more in 2019 than the entire Swiss watch industry, according to Strategy Analytics. Despite a late start in the smartwatch category, Apple Watch is in most demand and while it isn't specifically a fitness tracker, it is almost always mentioned in lists of top fitness watches. Of course, Apple invented the health watch category with its ECG feature that is just beginning to see some competition. It will likely be quite a while before any serious competition arises to challenge the Apple Watch point by point. Until that time, it is likely to continue to stand alone as the ultimate smartwatch that does everything.
Apple's iPhone, while quite powerful and popular in the US, holding roughly half the market, struggles overseas. With the iPhone being a requirement for an Apple Watch and the amazing climb to the top of the watch industry, iPhone ownership is likely to increase, particularly now that there are new budget versions of both Apple's smartphone and smartwatch. An interested shopper can buy two very fast, capable and supremely integrated Apple devices for $678. That's a new iPhone SE, at $399, and an Apple Watch SE for $279. Apple makes a very compelling offer with these entry level devices and without the inclusion of an 'Apple tax.' The company has carved out a large niche with a variety of products and can comfortably compete on price while still offering its ecosystem advantages. Apple products are routinely described as the most reliable, having good resale value, long life and durability. With the Apple Watch, the reason to switch to iPhone and Apple's ecosystem keeps growing.
Source: Apple, Strategy Analytics