Apple Watch - Product Line Extensions or New Product Development - Case Study Example

The paper “Apple Watch - Product Line Extensions or New Product Development" is a dramatic example of a case study on marketing. Apple Watch is a type of smartwatch designed and manufactured by Apple Inc.  It is available in three models: Apple Watch Sport, Apple Watch, and Apple Watch Edition. All three models are either 38 millimeters or 42 millimeters thick. The 38-millimeter Watch Sport retails for $349 while the 42-millimeter version retails for $399 (Mayword, 2015). The 38-millimeter Watch retails for between $549 and $1,049 while the 42-millimeter version goes for between $599 and $1,099. Finally, the luxury Watch Edition retails at between $10,000 and $17,000 for both 38-millimeter and 42-millimeter versions. Apple Watch has built-in fitness monitoring and health-oriented applications that help consumers to track their health and fitness as regularly as possible. Through Bluetooth and Wi-Fi, the watch is virtually connected to Apple’s operating system, iOS, as well as other products and services offered by the company.

Customers can access, remotely, services and applications that are available in the iPhone 5 and use the watch to perform actions that were previously limited to the iPhone, such as calling and texting. The three models all have different case combinations as well as first or third party shareable bands. Apple Watch is compatible with Apple Pay, Apple’s mobile payment service that was launched alongside the watch (Mayword, 2015). The watch can be used to control Apple TV, functions as a viewfinder for all iPhone cameras, provides users directions using Apple’s maps application, can be used to store loyalty tickets and cards in Apple’s mobile wallet and, using an innovation called the Force Touch, can detect the amount of pressure applied to its display. More importantly, the watch comes with Siri, Apple’s personal assistant and alerts users when its battery charge drops below 1 percent.

Type of Consumer Offering
The Apple Watch is a specialty offering. This is because, as its manufacturer, it is highly differentiated. Its design and features are tailored to complement Apple’s highly differentiated marketing approach, which contrasts it with other offerings by Samsung or HTC Corporation. Another reason the watch is a specialty offering is that it is bought less frequently compared to the iPhone, specifically the iPhone 5 with which it is compatible (Mayword, 2015). A majority of consumers see it as a luxury item that they need to plan for in terms of finding affordable and genuine retailers. Finally, the profit margins on the watch, as is common with Apple’s products and services, are greater than its competitors’. This is common in specialty offerings.

Product Line Extensions or New Product Development
The Apple Watch and the Apple Watch Edition are actually product line extensions of the Apple Watch Sport. Although they were launched at the same time, they are designed for different markets and marketed differently (Mayword, 2015). However, a look at the hardware and software design (e.g., size and display) shows that the Watch and the Watch Edition are based on the same fundamental structure and operational framework as the Watch Sport. The only difference is that they are marketed as more high-end and “app-heavy,” but the primary structure is the same.

Product Lifecycle
The Apple Watch is in the growth stage of the product lifecycle. This is because it became available for retail in April 2015, meaning it has been in the market for only around two months (Mayword, 2015). Due to Apple’s marketing ability and strong brand name, the watch has already evolved past the introduction stage and started capturing the market; this puts it in the growth phase. To extend the watch’s lifecycle, Apple should exploit its brand name, especially with respect to the iPhone, and use it to market the watch.