As Apple prepares for its major 2024 product announcements, including the much-anticipated iPhone 16, the Apple Watch stands out for its significant milestone. Today marks the 10th anniversary of the original Apple Watch’s introduction, a device that has continually disrupted the tech landscape and carved out a dominant position in the smartwatch market.
The Apple Watch, launched on September 9, 2014, represents more than just a digital timepiece. It is a symbol of Apple’s disruptive innovation, akin to the impact of the iPod, iPhone, and iPad on their respective markets. Steve Jobs, Apple’s visionary co-founder, oversaw the development of the Apple Watch, making it the last major hardware project under his leadership before his passing in 2011. This legacy imbues each Apple Watch with a sense of historical significance.
Thomas Husson, Vice President and Principal Analyst at Forrester, describes the Apple Watch as a “tremendous” yet “often forgotten” success. Despite critiques that Apple might struggle to replace the iPhone’s revenue dominance with new product categories, Husson notes that the Apple Watch has successfully created and dominated a new market segment.
Apple’s strategy of refining existing technology before its release was evident in the original Apple Watch’s debut. Announced amid the hype surrounding the iPhone 6, the Apple Watch was introduced as a revolutionary product designed to transform communication and health monitoring. The device was officially released on April 24, 2015, and it has since evolved from a luxury accessory into a critical health and fitness tool.
While the Apple Watch was not the first smart watch, it built upon earlier innovations. The Pulsar, introduced by Hamilton Watch Company in 1972, was the first LED display watch. Seiko followed with various smart watches in the 1980s, including models featured in films like “Octopussy.” The 1990s saw Timex’s collaboration with Microsoft and the release of Samsung’s call-capable watch. The new millennium brought advancements from IBM, Microsoft, and others, culminating in the rise of fitness trackers and smartwatches.
Apple’s entrance into the smartwatch market in 2014 merged existing technologies with its signature “cool” factor, significantly advancing the category. The Apple Watch’s integration with Apple’s ecosystem, including the Digital Crown and Siri, helped establish its market leadership. Husson points out that Apple did not pioneer the smartwatch but effectively accelerated its mainstream acceptance.
The Apple Watch’s transformation from a luxury accessory to a health-focused device reflects its evolving role. The addition of sensors for heart rate monitoring, ECG, and blood oxygen levels, alongside features like fall detection and exercise coaching, has solidified its position as a health tool. Despite its capabilities, Apple maintains that the Watch is not a medical device and should be used for reference purposes only.
The Apple Watch’s exclusive compatibility with iPhones underscores Apple’s strategy of creating a tightly integrated ecosystem. This approach not only ensures a seamless user experience but also drives the adoption of additional Apple products.
Industry estimates indicate that the Apple Watch commands a substantial 21.3% market share globally, more than double that of its closest competitor, Fire-Boltt, with 10.1%. Although its market share peaked at 51.4% in 2020, it continues to lead the sector. Analysts predict a resurgence driven by a growing iPhone user base, enhanced health insights, and anticipated integrations with Apple Intelligence.
In a notable achievement, Apple Watch sales surpassed those of the entire Swiss watch industry in the early 2020s, positioning Apple as a leader in the premium smartwatch market. Husson estimates that the Apple Watch generated approximately $15 billion in revenue in 2023 alone, reflecting its success over a decade.
As Apple unveils new products today, including the potential Apple Watch X, the timing of the event on September 9 underscores the significance of the Apple Watch’s 10th anniversary. This milestone reaffirms Apple’s ability to disrupt and lead in the tech industry, continuing its tradition of innovation and market dominance.
