Ultimately, Apple’s competition in the smartwatch space is not Samsung, LG or Motorola, at least not with the products that they are shipping today. It is brands such as Tag Heuer and Movado, brands that represent premium quality and materials while still being affordable and relatively mass market compared to elite luxury brands such as Cartier and Rolex.
I just don’t agree with this. Not that the current competition is any kind of barometer for what smartwatches can be but the last part about typical “premium” watches. Those purchases are still made for very different reasons. Yes, in some ways, it can be argued that gadgets have become as much of a fashion statement as clothes and accessories. But I think most people continue to make their gadget-purchasing decisions based primarily on functionality rather than fashion.
Eventually, these two markets will probably converge. But in the near-term, I believe the audience for the iWatch, aside from tech geeks and Apple loyalists, will consist of a lot of first-time watch buyers who have stopped wearing wristwatches (because their smartphone can tell time) or with younger millenials, have never worn a watch at all. I don’t think the folks buying Swatches and Tag Heuer watches are necessarily going to gravitate towards an iWatch because they’re looking for something fashionable first and foremost; not a gadget.