Apple Watch:

Market Research

The purpose of this research is to provide an overview of the Apple Watch and relatedinformation that will help you decide whether it should be part of your 2016 mobile strategy.

The research will cover core watch features andmain users for readers to think about before entering the market.

Apple Watch: Future of Wearable IoT

Stainless steel or space black stainless steel cases. Sapphire

cr ystal. A range of stylish bands.

Sport

Anodized aluminum cases in silver or space gray. Strengthened lon-X

glass. Colorful, durable bands.

Edition

18-karat gold cases in yellow or rose. Sapphire cr ystal. Exquisitely crafted

bands and closures.

There is an apple watch for everyone.Every aspect of Apple Watch is designed for precisely when you use it and where you wear it –on your wrist. Each interaction is quick and light.

It’s forecasted that 90+ millionsmartwatch units will be sold in 2018.

Out of all smartphones, 1 out of 20will be paired with a smartwatch.

Source: Solstice Mobile

Apple Watchis emerging as a player.

Total 21 million Watches are projected to sell during the first two quarters of 2016,

Works out to $8.4 billion revenue in first 12 monthsAt average selling price of $400.

Source: Philip Elmer-DeWitt, Author of Fortune

Source: KGI Securities

Pebble Time and Time Steel pre-orders

95,906

Xiaomi Mi Band sales in 2014

109,000

Total Android Weardevices in 2014

720,000

Smart wearable bandsales in 2014

4.6 million

Apple Watch pre-orders 2.3 million

Comparing Success of Apple Watch

Source: Wristly Insider

Research is conducted on 3/21/2016 and over 1,370 participants.

Main Buyers: Male and Sporty Users –(1)

86%of all users are

MALE

16%of all users are

FEMALE

37.84% 61.78%

APPLE WATCH

APPLEWATCHSPORT

0.08% 0.31%

APPLEWATCHHERMES

APPLEWATCHEDITION

Source: Wristly Insider

Research is conducted on 3/21/2016 and over 1,370 participants.

Main Buyers: US Residents and Teen Users –(2)

North America, 73%

Asia&Ocenia, 20%

Europe,

7%18-24,

9%25-34,

14%

35-44,

23%45-54,

25%

55+,

29%

Residency Age

Source: Wristly Insider

Research is conducted on 3/21/2016 and over 1,370 participants.

Main Buyers: Tech Savvy Users –(3)

27% 3%

A TYPE OF COMPUTER

ON MY WRIST

FROM BUSINESSPOINTS

19% 27%

TO TRACKPHYSICALACTIVITIES

NOTIFICA-TIONS

6%

I GOT IT AS AGIFT

18%

FROMTECHPOINTS

USER PROFILE

About 40% of iPhone ownersare interested in Apple Watch,

including 17% describing themselves as “very interested”.

Apple Watch apps don’t stand alone.

They complement iOS apps.

Apple Watch won’t replace iPhones

Main features of Apple WatchIn the future, Apple won’t accept apps that don’t work without iPhone on Apple Watch. Native apps for the Apple Watch ensure that users are able to access data on these apps.

Apple Watch is the most successful wearable product ever released, with an estimated 12 million units sold since its 2015 launch.

In 12 months it’s become the No.1 smartwatch manufacturer along with Fitbit, taken control of a nascent wearables market.

Inarguably, Apple Watch has raised the public’s smartwatch consciousness.

Conclusions: Huge Success with High Market Expectations

Thanks for your listening.