The unveiling of the Apple Watch in early September left consumers and industry analysts with more questions than answers. After the sluggish sales of smartwatch predecessors, what is the actual market opportunity for Apple’s wrist-based wearable? Will consumers’ perception of the technology motivate them to make a purchase? And what type of consumer is most receptive to this device?
In my recently published report, I leverage Forrester’s Technographics®360 multimethodology research approach to answer these questions. So far, reaction to the Apple Watch has ranged from skepticism to enthusiasm, and our data shows that the story of Apple Watch adoption is indeed two-sided. Our evaluation of consumer behavior and attitudes reveals an immediate market opportunity for the device as well as psychological barriers to adoption:
However, the story doesn’t end there. Between the advantages and challenges of Apple Watch adoption emerges a third reality, which synthesizes the two. Apple Watch uptake will evolve, with early adopters, motivated by excitement, biting first and a second wave of mainstream consumers – who can see and experience the benefits of the device – buying next.
Mobile developers change people's lives every single day -- they create innovative experiences, reshape how we spend our time, and give us continual access to Facebook and Twitter (the latter being especially important to the author!). The pace at which these new experiences are delivered continues to amaze, yet continues to speed up. As a recovering enterprise mobile developer myself, I'm always tracking the new tools and technologies that developers are using to maintain this pace and provide new innovation. With that in mind, we've published a report on the mobile development predictions for 2015; the changes that will allow developers to continue to produce amazing innovation at a continually faster rate. We've highlighted 8 in the report, but the ones that are especially exciting to me are:
Well, it’s finally here! After weeks of anticipation, Apple Pay launched on Monday. Apple also unveiled the iPad Air 2 and iPad mini 3, both with Touch ID sensors and an embedded secure element, which means Apple Pay can be used for in-app payments on those devices as well as the iPhone 6 and 6 Plus. Apple Pay launches at a time when the US payments marketplace is in turmoil: The frequency and scale of security breaches are on the rise, issuers are beginning their migration to chip-enabled cards, and mobile payments are still quite nascent — even after significant investment and a range of competitors that have come and gone. Enter Apple Pay.
Just as new products and services from Apple have reshaped other industries, Apple Pay will reshape and set a new benchmark in consumer payments. There are many well-designed aspects in the initial version of Apple Pay — these are the Apple Pay “hits.” They include a context-aware, streamlined user experience; a breakthrough approach to security; unprecedented payments ecosystem cooperation; and great timing.
Although there is a lot to like about Apple Pay, this ship has holes. If not addressed, these “misses” — such as an inability to scale in-person payments, limited consumer and merchant value, and reduced consumer insight for marketers — will derail Apple Pay's ability to reach the mainstream, become the undisputed commerce platform of choice, and achieve Tim Cook’s vision of replacing the wallet.
The frenzy over Apple’s formal launch into the digital wallet space has reached a fever pitch. There is no shortage of speculation around the widely anticipated “iWallet” – and for good reason. Apple has a slew of compelling assets to leverage for its wallet, like an existing consumer base with roughly 800M cards on file, Passbook, iTouch, iBeacon, and more. It also has a unique track-record of entering existing categories with elegantly designed solutions that redefine, then dominate -at least for a time. However, we can’t ignore the fact that the mobile wallet graveyard is littered with elegantly designed solutions that failed to take off. Case in point: Square Wallet..
When it comes to digital wallets “…build it and they will come…” simply does not hold true. The challenges of Google Wallet and Visa’s V.me are two more familiar examples. To be clear - I do expect that over time Apple’s mobile wallet will have greater success than Square Wallet, Google Wallet, or V.me. But an elegant user experience won’t be enough to do it. Merchants will determine whether Apple’s mobile wallet lives or dies.
Digital Wallets Require Scale, And Merchants Control The Levers At Checkout
Will the iPhone 6, to be announced on September 9, have NFC and a Sapphire Crystal display?
What about the new Samsung Galaxy Note 4, to be announced at Unpacked on September 3? And will the new Nokia Lumia 730 (a.k.a Superman), to be announced on September 4, have a 5-Megapixel rear-facing camera?
As my colleague Frank Gillett puts it, “Samsung's challenge is to establish an enduring relationship with customers, rather than being an interchangeable Android device maker – and it will take more than a new Galaxy Note to do that.”
"When will Google launch a bank and what will it look like?" is a question I frequently hear from our banking clients. Google’s activities in digital wallets and payments, as well as its reputation as one of the most disruptive firms in the market, have obviously left many banking executives worried. Unfortunately, they’re asking the wrong question.
I’ll leave aside the issue of whether Google or perhaps Apple or Amazon should be the focus of this increased attention. Each of these players has its unique strengths and growth plans, and some of these correlate more or less closely with financial services. That’s not what makes the question so wrong. As I write in my new report, it’s the assumptions that are faulty here; assumptions that reveal precisely the type of legacy mindset that makes many retail banks so vulnerable to disruption.
Many retail financial firms still haven’t grasped the full potential of digital disruption. They think that new competitors will use their digital might to beat them at their own game, be that through more efficient processes, brilliant algorithms or better user experience. While these three things do matter, what matters most is the purpose which they serve. As I have written elsewhere, digital disruptors like Google are disruptive because they don’t play by the rules. Instead, they use digital technologies to deliver better or entirely new ways of meeting customer needs, often bypassing regulation and re-defining a given industry in the process.
You’ve probably already seen the announcement of the partnership between IBM and Apple; Forrester clients can read more about it here, along with our deeper analysis.
While I can’t comment on the trends in North America and Europe, I know that there are some interesting dynamics in the enterprise mobility space in Asia Pacific at the moment. The penetration of technologies like BYOD, customer mobility, and employee-facing mobile apps has been relatively low in many Asian countries, putting the region’s companies behind their North American peers for the most part. I still speak with CIOs and marketing leaders about why they should have a mobility strategy or how they can help their employees stay productive regardless of location.
Don’t get me wrong: There are a lot of smartphones and tablets — particularly iPads — in businesses across the region. But many of these devices, especially the tablets, were personally acquired by employees — so they’re an “accessory tool,” not a core productivity tool; often, corporate tech management doesn’t support them and app-dev teams don’t develop for them.
Apple’s new "Extensibility" feature took somewhat of a backseat to a host of exciting new developer tools announced at Apple’s developer conference a week ago. I’d like to briefly highlight its importance to the enterprise.
In short, Extensibility makes it easy for apps to talk to each other, facilitating more complex mobile workflows and easy access to data stored in personal cloud services. It will spur app developers work together to speed the advancement of what employees will be able to accomplish on mobile.
To elaborate, Extensibility will enable:
Complex inter-app workflows for mobile employees. More advanced content creation apps have been slow to develop on mobile platforms, in part due to lack of app interoperability. Think of the multiple software tools we use to pull a contract from email, sign it, and send it back on a PC. Data must similarly flow across a variety of apps to accomplish this on mobile. Apple has done little to address this, until now.
Access to the personal cloud in enterprise apps. Employees rely on personal cloud services like Dropbox and Evernote to manage an expanding array of digital content online. But these repositories don’t integrate with the enterprise off the bat. Extensibility can act as a router to connect personal data with the apps your employees use every day on the job.
My colleague Ted Schadler explained here how Apple's iOS 8 focuses on developers building new mobile moments.
Once again, Apple increases the value of its ecosystem and will create more stickiness and loyalty by enabling developers and marketers to build new app experiences. The first building block to tap into the new opportunities that wearables and connected objects are opening up is to create a service ecosystem. That’s the reason we haven't heard any product announcements yesterday.
From a marketing standpoint, Apple introduced some new App Store features for developers, like app previews and app bundles. Marketers will be able to let users buy multiple games or apps at once and for a discounted price. App listings can now include feature video demonstrations to showcase the value of your app. The new “Explore” tab - including the trending topics and the vertical scrolling - will also facilitate app discovery.
However, in comparison with the great iOS differentiated innovations announced to create new app experiences (e.g., HealthKit, HomeKit, Swift, TouchID, and open APIs), Apple mostly implemented incremental changes to its App Store marketing. Most marketers sill complain about Apple’s black box and the lack of transparency about Apple App Store’s ranking algorithm and ratings and review systems.