Tech giant Apple released its Watch overnight, and consumer electronics retailers JB Hi-Fi Limited (ASX: JBH) and Dick Smith Holdings Ltd (ASX: DSH) must be salivating at the thought of getting the product in stores soon.
The Apple Watch will be on sale in Australia from April 24, after being revealed for the first time in September 2014. It's the first new product category since Tim Cook took over as CEO of Apple from the legendary Steve Jobs.
Sales could be huge of the Watch, interestingly just called 'Watch' not iWatch. It seems Apple is after a whole new range of customers – not just those technology obsessed first adopters – who would normally jump on new iPhones or iPads – and also bypasses the protracted legal battles Apple has faced with many of its other 'i' products.
With weak consumer confidence affecting sales, the launch of the Watch, which comes in 2 sizes and 3 styles, around 35 different combinations and a starting price of US$349, could generate much needed traffic to both JB's and Dick Smith's retail and online stores. A host of accessories are likely to follow such as watch bands, chargers, cables and protective cases.
And expect Apple to roll out upgrades over time too. For one, the battery life is stated as 19 hours – which means most people will have to charge it every night. Heavy use could see the battery last only 2.5 hours. Here's an image of the Watch on charge – but there's no plug – charging is done via induction, so the Watch is completely sealed.
If the watch proves popular, it could also spur sales of the latest iPhones, given you need an iPhone to use the Watch – although some people might just like the idea of wearing a watch on their wrist that does little more than tell the time!
Other retailers selling the Watch, including Harvey Norman Holdings Limited (ASX: HVN) and Myer Holdings Ltd (ASX: MYR) may also see an uptick in sales.
