Gartner Research

Apple Watch Announcement Swipes the Spotlight From New iPhone 6

Published: 01 October 2014

ID: G00270466

Analyst(s): Angela McIntyre, Annette Zimmermann, Roberta Cozza

Summary

The Apple Watch has set a benchmark in the smartwatch market that will trigger sales in 2015. With anticipated larger screens, iPhone 6 and iPhone 6 Plus enable Apple to compete within this segment. Product marketers need to use content and unique user experience to differentiate their smartphones.

Table Of Contents
  • Impacts

Analysis

  • What You Need to Know

Impacts and Recommendations

  • The Apple Watch announcement sets a benchmark for higher-end smartwatches, which will both trigger interest and significant sales of smartwatches in 2015 among consumers
  • Apple's health platform, thought to centralize all users' personal health data, is forward-looking; however, there is still a long way to go until realization due to legal regulations
  • The lure of the iPhone 6 and iPhone 6 Plus will encourage existing Apple users to upgrade; for some high-end Android users, it will be an alternative — yet this will not result in a higher overall unit market share
  • The iPhone 6 Plus increases competition in the >5-inch-screen market that will position Apple well in Asia (particularly China) where the larger form factor is becoming more prevalent
  • Neither of the new iPhones will impact Apple's unit share in the market longer term, but it will bolster its leadership in revenue share in the premium phone segment, taking well over a 50% share in 2014

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