a16z Podcast | What the Apple Watch Is -- and Isn't

TL;DR

Apple introduces a luxury gold version of the Apple Watch, challenging the luxury goods market. The watch focuses on delight and pleasure rather than just utility.

Transcript

welcome to the a 16z podcast I'm Michael Copeland and we are here with Benedict Evans back from London and you were well outside of the Apple reality distortion field for the watch event yesterday so we want to talk about that and get your impression so benedict welcome thank you so it's interesting everything Apple does is interesting in a sense a... Read More

Key Insights

• 👋 Apple is targeting the luxury goods market with the gold version of the Apple Watch.
• 👀 The impact of the gold watch on the overall market is more significant than the number of units sold.
• 👤 The Apple Watch offers a different user experience, focusing on delight and pleasure rather than just utility.
• ❓ Apple is shifting from selling technology products to selling objects of desire and experiences.
• 👀 The watch would preserve users from information overload by acting as a filter for important notifications.
• 🤱 Apple's emphasis on delight and pleasure over feeds and speeds is a notable trend in their product strategy.
• 👀 The watch is seen as a step change in usability and the importance of delight in user experiences.

Questions & Answers

Q: Will people who buy expensive mechanical watches also buy a $10,000 electronic watch?

The luxury goods market is used to extravagant purchases, like $10,000 dresses. While it may be a niche market, there is potential for sales in the luxury watch category.

Q: Why did Apple decide to create a gold version of the Apple Watch?

Apple is known for breaking rules and creating unique products. Gold watches are already prevalent in the luxury goods market, and Apple wants to tap into that market for its own brand.

Q: How does the Apple Watch compare to other luxury watches?

Apple's retail business has created a unique perception and marketing strategy, making its product placement prestigious. The gold watch adds to Apple's brand power and prestige.

Q: What are the potential use cases for the Apple Watch?

The watch offers a different user experience, focusing on delight and pleasure rather than just utility. It could act as a filter for information overload and simplify smartphone usage.

Summary & Key Takeaways

• Apple introduces a gold version of the Apple Watch, priced at $10,000 and up, targeting the luxury goods market.

• The impact of the gold watch on the overall watch market is more significant than the number of units sold.

• The Apple Watch offers a different user experience compared to smartphones and tablets, focusing on delight and pleasure.