Why Does Apple Bother to Advertise Its Watch?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
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At the top of the front page of WSJ.com is an ad, and a large one, for Apple Inc.’s (NASDAQ: AAPL) new watch. Why advertise at all, if Apple Watch sales are wildly successful? Maybe the ads are a sign that they are not.

The Apple Watch ads say “Learn More.” For a product with such a widely scrutinized launch, and with the new product so widely dissected, why bother to “Learn More” at all? Analysis and publicity may not have yielded successful sales. The scrutiny has revealed a many features of the watch that are right, but also some things that are not included and should have been. At least they should have been for people who want them.

Apple Watch does what other watches do. It keeps time, precisely. It tells what time it is within 50 milliseconds of what Apple calls the “definitive global standard of time.” It is a feature that will be lost on most people who want to know if it is early or late within five minutes of most other peoples’ clocks. Beyond that, Apple Watch tracks messages and fitness. Many experts think that these and other features of the watch are not enough to allow it to break through as a mainstream product. A point of proof that Apple Watch is not unique enough to capture the market are the IPO plans of smartwatch company FitBit. This point has been made over and over by the press and Wall Street.

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Another way to look at the watch is that Apple management does not see its success as key to the company’s future. iPhone sales make up more of Apple’s revenue. To hear management talk, the importance will only widen. And the leverage will come from contributions of the iPhone 7 and iPhone 8, the creations of which are inevitable. Apple Watch, then, does not matter in the scheme of things that will make Apple’s future bright.

If Apple Watch is not part of what will make Apple’s future bright, why spend millions, or tens of millions, to advertise it? Apple will not tell, so any opinion is no better than a guess.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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