Apple Watch: Your personal health buddy
Introduction
Hello listeners. Welcome to a new episode of the A-Positive Podcast. I’ve mentioned before that I had a podcast years ago, back in 2007 but that was more music than talking. This podcast is also a bit different where I am presenting Apple facts from an Apple user perspective instead of talking about a subject with someone else.
I noticed that the first few episodes may sound like I am reading an article because in a way I am reading from my own preparations for these episodes. I’m going to improve how every episode is prepared, shaped and presented. If you have any feedback let me know by providing a review.
This week is the Apple Watch 10 year anniversary. I am going to talk about how the Apple Watch has shaped Apple’s business over the last decade. I will explore the financial impact, the influence on customer loyalty, Apple’s health initiatives, the hardware evolution, the ecosystem integration and the future outlook. I will include relevant global trends, insights from others in the space, and any compelling metrics to support the story.
So let’s dive in.
Financial impact of Apple Watch
Apple launched the Apple Watch in April 2015, entering a nascent smartwatch market while at the same time there was skepticism about its purpose.
Apple introduced it a bit earlier in September 2014 and this is what Tim Cook had to say:
So deliberate. This was when Tim Cook still did large parts of the keynote himself, as was tradition for the Apple CEO to do.
Ten years later, the Apple Watch has evolved into a cornerstone of Apple’s product lineup and a leader in the global wearables industry.
The Apple Watch created an entirely new revenue stream for Apple and since its debut Apple has reportedly shipped well over a quarter of a billion watches. In Apple’s financial reports, the Watch is grouped into the “Wearables, Home & Accessories” segment, which grew dramatically alongside the success of Apple Watch as it surged from about 13 billion dollars in 2017 to close to 40 billion just last year. Which is roughly 10 percent of Apple’s total sales. It’s hard to comprehend but that’s a big number for just one product category. Apple’s wearables industry alone would rank among a Fortune 100 company in size.
We don’t know the specific numbers for Apple Watch alone, but it’s making a significant driver of Apple’s growth in the late 2010s. And you don’t need the numbers to prove it. Just look around you and you will see Apple Watch being worn everywhere. It’s the only watch that ever outsold the Swiss watch industry in unit sales.
The Apple Watch helped diversify Apple’s product mix beyond the iPhone, reducing reliance on smartphone sales. And this is while the Apple Watch requires an iPhone!
While iPhone revenue plateaued, the Apple Watch provided a new growth engine. And by creating an attractive smartwatch category, Apple also secured the majority of profit in the global wearables market. In recent years Apple consistently held a leading share of the worldwide smartwatch market. Often around one-third of unit shipments globally and even higher by revenue.
Just a couple of years ago the Apple Watch accounted for more than half of North America’s smartwatch sales. Overall, the past decade has proven the Apple Watch to be a over a 100 billion dollar success that strengthened Apple’s financial health and a new product category for sustained revenue.
Customer usage and loyalty
The Apple Watch has not only generated revenue but also expanded Apple’s user base and deepened the customers loyalty. After 10 years, the device has over 100 million active users globally, making it one of the most popular wearables in the world.
And reportedly in some regions nearly 80% of iPhone users also owned an Apple Watch. And what’s most impressive is that each year, a large part of buyers are first time Apple Watch buyers. In fact, Apple reached an all-time high Apple Watch install base last year, with over half of purchasers being first-time Apple Watch owners rather than repeat upgraders. Introducing the Apple ecosystem to fresh customers attracted by Apple Watch.
Reasons for customers can be for the wellness features, but also some Android switchers cite the Apple Watch as a reason for moving into Apple’s ecosystem.
And there’s something to say for the ecosystem integration as well. Both watchOS and iOS work seamlessly together, making it a useful extension of an iPhone. I don’t like wearing things on my wrist, but the moments I had an Apple Watch it was very useful. From checking notifications, to navigating but also paying for stuff with Apple Pay. All from the wrist. And while it remains tethered to the iPhone, strange enough it frees you from it at the same time.
Apple calls the Apple Watch “the most personal device” and this high daily usage makes it part of a personal routine and identity. A tap on your wrist instead of pulling out a phone creates a stickiness that keeps users engages without getting sucked into the less optimal things your phone can do for you. And if it’s time to use the phone you can find it if it’s misplaced right from your wrist.
And just like the Siri episode where I explained that if there are one of two things it can do for you well throughout your daily life, the Apple Watch as well can be convenient enough for you to give up once experienced. It can be tracking important health metrics to unlocking your Mac. It’s personal. The most personal, right?
And by delivering consistent quality and useful features, Watch users are more committed to the ecosystem. It has essentially raised the switching cost for Apple customers: an iPhone user with an Apple Watch (and maybe AirPods) is far less likely to leave Apple, because doing so means switching a whole suite of interconnected devices and data. In this way, the Apple Watch has been a strategic tool for boosting customer retention and lifetime value, on top of expanding Apple’s customer base.
Let’s dive deeper into the Watch’s niche. Health.
Health as a core value
From early on, Apple positioned the Watch as a health and fitness companion, and for over 10 years that focus has only deepened. It actually became one of the key features for considering an Apple Watch to the point that Apple CEO Tim Cook views health as the company’s greatest legacy.
Up until now the Apple Watch has been the centerpiece of this vision, advancing Apple’s commitment to personal health and wellness through technology. And it started already with the first Apple Watch using a heart-rate sensor and Apple’s simple Activity Rings for daily fitness, but Apple quickly expanded the Watch’s health capabilities with each generation.
In 2018, the Watch Series 4 introduced an electrocardiogram or ECG and the ability to detect atrial fibrillation, as well as a Fall Detection feature that could automatically call emergency services if the user took a hard fall.
These were not just gadget features but life-saving changes for users with heart conditions or at risk of falls. And Apple kept putting in more health features into new generations of the Apple Watch with a blood oxygen saturation sensor, a body temperature sensor for cycle and sleep tracking, and even crash detection using the accelerometers.
And putting these essential features not just in the most expensive version but also in the budget friendly Apple Watch SE, as these features are truly the core value and not just a way to profit on.
Apple steadily turned the Watch into a “dedicated health and fitness” device, redefining what a smartwatch is used for and today’s Apple Watch can alert users to irregular heart rhythms, it can track cardio fitness, it can monitor your blood oxygen and track your sleep quality. It can even help detect conditions like sleep apnea in the latest model.
Each new health feature is backed by significant R&D and often regulatory approval, reflecting the serious approach to medical-grade functionality.
Credibility in this space is very important and so required collaboration with the medical community. Back in 2017, Apple launched the Apple Heart Study with Stanford Medicine, enrolling close the half a million** participants**. Which was one of the largest digital health studies ever to validate the Watch’s ability to detect atrial fibrillation and resulted in FDA clearance for notifying users for this particular health feature.
Other partnered research are on hearing health with the University of Michigan and Women’s health with Harvard.
On the consumer side, the Apple Watch has a growing list of life-saving anecdotes from around the world. Plenty of users credit the Apple Watch for when they got alerted to serious issues. Apple also often highlights these stories in larger events to show the real-world impact of its health features.
Apple even has partnerships with healthcare providers to integrate the Watch into wellness programs like health insurer Aetna, earning a free Apple Watch when meeting fitness goals and even the government of Singapore launching a health initiative using Apple Watch to reward citizens for healthy behaviors. Leveraging the Apple Watch to drive public health outcomes, which in turn boosts the device’s credibility and adoption.
I think it’s safe to say that embracing health has clearly been a win-win for Apple, and especially us customers. Positioning health truly differentiated the Apple Watch from the early gadget reputation and tapped into a universal customer need. It probably also transformed the Apple brand from simply tech-focused to wellness-oriented. Features like closing the Activity Rings is now a cultural meme in fitness — which this 10 year anniversary gets you a special badge in the Fitness app complemented with an actual pin handed out in the Apple Store if you are able to get your hands on one of course. It’s a simple thing like this that encourages daily engagement and positive behavior change.
By making health a core value proposition, Apple has increased the Watch’s importance to users and positioned itself at the forefront of consumer health tech. Going forward, Apple’s greatest contributions in health – as Tim Cook predicted – may indeed come via the Apple Watch, as it continues to blend sensors with clinical integration to improve lives.
Key Apple Watch hardware milestones
Talking about the tech inside an Apple Watch, each generation brought significant hardware and software improvements, steadily expanding its capabilities from a simple companion device to a powerful health and productivity tool.
Let’s take on overview of the hardware evolution over the past decade:
- 2015 – Original Apple Watch (1st Generation) or “Series 0” debuted with a square Retina display, but also the innovative Digital Crown for navigation. It had an optical heart-rate sensor. It ran watchOS 1 which wanted to do way to many things. This was back when Apple was also figuring out what it was best at. It had basic apps and message notifications and of course the Activity Rings for fitness tracking. There were three versions offered. There was the Apple Watch made from stainless steel, there was Apple Watch Sport from aluminum and there was a prestigious 18K gold Apple Watch Edition, this was probably to get the attention of the traditional watch makers and the fashion world with luxury ambitions. However, the first model was criticized for slow performance and a short battery life and Apple soon pivoted its focus to core functionality over luxury. But, it had the attention from old school watch wearers, seeking out digital convenience without sacrificing luxury or looks.
- **Then in 2016 – Series 1 & Series 2 where **Apple quickly refreshed the hardware. Series 1 upgraded the processor for better speed. Series 2 added built-in GPS for phone-free fitness tracking and 50 meter water resistance, making the Watch suitable for swimming. The display became twice as bright for outdoor visibility and these improvements established the Watch as a capable fitness tracker on its own.
- A year later in 2017 came Series 3 which introduced a major step with optional cellular connectivity built into the Watch with eSIM. Now you were able to make calls, send texts, and stream music without an iPhone nearby — which makes it the first hint of the Watch as a standalone device. It also got a faster S3 chip and a barometric altimeter, which was useful for tracking elevation gain during workouts. The blend of fitness and untethered communication on Series 3 actually proved to be a big success, and Apple kept this model in the lineup for years as an entry-level option.
- **Then in 2018 with Series 4 came the **first major redesign. It featured a larger display and it introduced the **ECG **sensor I just talked about — which was a first in smartwatches. Alongside ECG, Series 4 also added Fall Detection with a new accelerometer and gyroscope. And this model proved the Apple Watch’s identity as a serious health device, not just a gadget. There was also a faster S4 chip and a refined design which improved the user experience. This watch really created a turning point in reviews and consumer adoption.
- From there in 2019 we had Series 5 which addressed a common user request with the Always-On Display, which allowed the watch face to dim but remain visible at all times, just like a classic watch. And despite the always-on display, Apple maintained 18-hour battery life. The series 5 also added a built-in compass sensor for better direction finding. So while making it more like a traditional watch it also got useful hardware added.
- **With Series 6 in 2020 **the Watch got a blood oxygen sensor, reflecting a focus on wellness monitoring. It also got a new S6 chip, based on the A13 Bionic for snappier performance. That year Apple also launched the Apple Watch SE, a more affordable model probably aiming to expand the user base.
- **With Series 7 in 2021, Apple Watch got **a larger display by further reduced bezels and a more durable design. The screen area grew about 20%, enabling a full keyboard on the Watch. Series 7 also introduced 50% faster charging, which was important for those who wear it for sleep tracking. These refinements improved usability with bigger buttons and text but the core sensors and processor were similar to Series 6.
- Then in 2022 we got Series 8 but also Apple Watch Ultra. Series 8 added a new temperature sensor focused on women’s health for retrospective ovulation estimates and Crash Detection. However, the headline of 2022 was the introduction of the Apple Watch Ultra, which is a high-end titanium model aimed at outdoor adventurers and athletes. The Ultra featured a rugged design, a larger battery, doubling battery life of the regular Apple Watch, but dual-frequency GPS, the Action button, and higher water resistance with a depth meter. This was Apple’s attempt to expand into the premium sports watch segment challenging Garmin and the likes. It demonstrated how far the Apple Watch hardware family had come diversifying the line up.
- In 2023 with Series 9 the Watch got a new S9 chip, Apple’s first major chip upgrade for the Watch in several years, bringing performance and efficiency gains. This enabled on-device Siri processing and a new “Double Tap” gesture, which unexpectedly enough I find very very useful. Series 9 also included Ultra Wideband technology for more precise locating of your iPhone or AirTag. While this was a more iterative update, it continued Apple’s pattern of annual improvement. Apple also released an Apple Watch Ultra 2, but that was just a spec bump with the S9 chip and a brighter display.
- **And now the latest and current Apple Watch is Series 10 **with a slimmer design, bigger and brighter display and once again a new health feature with sleep apnea detection. Although this was a software upgrade and also works on Series 9. It also unified health metrics into a new Vitals app for monitoring key categories.
Throughout this evolution, Apple iteratively improved the Watch’s core components – from display and durability to processor and sensors – while maintaining compatibility with existing watch bands and the signature look. The sleek rectangle, customizable bands and digital crown design language proved enduring and has been widely imitated in the industry.
The customizable bands also cultivated huge 3rd party accessory market and even Apple had collaborations with big brands like Nike and Hermès to appeal to personal style.
In summary, each hardware generation of Apple Watch advanced its capabilities significantly across fitness, health, and convenience, turning initial skepticism into widespread adoption.
Strengthening the Apple Ecosystem
Before we continue, let’s take a quick break for our sponsor, no-one, because ads suck, remember? So let’s move on. I’ve talked about the Apple Watch contributing the the Apple ecosystem already but I want to dive a bit more in to this.
From the start, the Apple Watch was conceived as an extension of the iPhone – and indeed you must have an iPhone to use the Apple Watch. But over time it has also become a hub connecting to Macs, AirPods, and various Apple services in seamless ways.
Because the Apple Watch makes the experience of owning multiple Apple devices more fluid and interconnected. For example, if I wear an Apple Watch, my iPhone automatically unlocks when I raise it (no need for Face ID in some cases), and conversely, my Watch can unlock my Mac just by me being nearby. The Watch can serve as a remote control for my iPhone camera shutter, for my Apple TV, or for music on my HomePod. With features like Handoff, I can start a phone call on my Watch and transfer it to my iPhone. When my AirPods are connected, my Apple Watch can directly stream music or podcasts to them, meaning I can go on a run with just Apple Watch and AirPods and leave the iPhone at home. These little integrations illustrate Apple’s ecosystem advantage – the devices augment each other’s value. Apple’s tight hardware-software integration is evident in things like my Apple Watch being able to “Ping” my iPhone to locate when it’s misplaced, or I can use the new Ultra Wideband, which make owning both a Watch and an iPhone much more useful than either alone.
But this is also true for Apple services, enhancing their usage and making subscribers more likely to stay with Apple.
Where I live there’s no Fitness+, but if you can use that, which actually requires an Apple Watch to subscribe, Fitness+ uses the Watch’s real-time health metrics like heart rate, calories and your rings, and displays them on-screen during workout videos.
Similarly, Apple Pay saw increased adoption with Apple Watch, since paying with a flick of the wrist is even more convenient than using a phone.
The Watch also feeds data into Apple’s Health app and iCloud, which keeps users tied into Apple’s cloud ecosystem (with years of health data stored, making users less likely to switch platforms. But also features like Family Setup, which allows an iPhone user to set up Watches for family members who don’t have an iPhone, like kids or elderly parents.
**And **for Apple, every Watch sold amplifies the pull of its ecosystem. The Apple Watch effectively locks customers in more tightly. A user who has invested in an Apple Watch (with their fitness history, health records, and app preferences on it) will think twice about switching to an Android phone, because no other wearable offers the same level of integration with Android. In contrast, an Android user might be lured to switch to Apple to access the Apple Watch’s benefits.
Over the past 10 years, as people added Apple Watch and AirPods to their iPhone ownership, the “halo effect” took hold – each device makes the others more useful, creating a virtuous cycle of loyalty. And for many I would argue that either Notifications, Integration with the Apple ecosystem and/or Fitness tracking is why your are wearing an Apple Watch
Future Outlook
So, what does the future of Apple Watch look like? As the Apple Watch enters its second decade, there’s still a lot of potential to contribute in health, especially in preventive care. This could be powered by new health sensors, deeper healthcare integration, machine-learning and of course other software advances. Which in turn will help grow the ecosystem as a whole. Maybe the Apple Watch will become even more independent from the iPhone, or maybe wearables as a categorie spread out beyond the wrist, ears and eyes creating a physical ecosystem, or a Personal Area Network, if you will.
Apple’s work in AI and Siri will likely make the Watch a smarter assistant – imagine Siri on Watch becoming a real-time health advisor or fitness coach. Also, the Apple Watch might integrate with Apple’s other emerging technologies: for instance, it could act as a convenient controller or authentication device for Apple’s AR glasses or Vision Pro headset (bringing things like health data into AR fitness experiences).
In summary, the Apple Watch’s journey from the 2015 debut to a central pillar of Apple’s ecosystem by 2025 has been remarkable.
It not only generated substantial revenue, but also helped transform Apple’s identity (with health and wellness now at the forefront)
It once again proved the power of integrating hardware, software, and services. And as Apple continues to innovate, the next decade of the Apple Watch promises to blur the lines between consumer electronics and personal healthcare even further.
The Apple Watch’s past achievements have set the stage for an even more impactful future, where wearing one might just help keep you healthier, safer, and more connected.
Links
Estimation of shipped Apple Watch:
https://www.wired.com/story/apple-watch-turns-10/#:~:text=When%20it%20debuted%2C%20the%20first,spawned%20a%20flotilla%20of%20imitators
Over 80% of iPhone users own an Apple Watch:
https://www.counterpointresearch.com/insights/apples-device-ecosystem-multiplies-its-brand-strength/
Apple Watch first time buyers:
https://www.apple.com/newsroom/2024/08/apple-reports-third-quarter-results/