Apple has been on a seemingly endless innovative path since its inception decades ago. Going from humble beginnings to the mega scale that it operates on now was not achieved solely through taking risks and being forward-thinking though. Apple's astute business management was another key component of making the company into what it is today. The management of the company's future is especially interesting for customers, investors and competitors alike. How long can a company with such unprecedented success dominate the technologies market? How much higher can revenue realistically rise? These questions make upcoming announcements from Apple a joy for industry insiders and fans of the brand to speculate about.
Landmarks of that innovative history are iconic. Apple's cult classic commercial is representative of its ability to effectively market its cutting edge products. In doing so, it has grown a customer base that includes millions of people throughout the world. Those millions use Apple phones, tablets, computers and iPods to enjoy multimedia, execute business transactions and effectively run their lives. The importance of those devices on everyday tasks makes optimizing its user experience a key part of keeping customers satisfied and retaining its business upon the release of new technologies.
So when Apple announced that it would be developing a smart watch in September of 2014, it came as no surprise. Apple finds itself in an unfamiliar situation with its upcoming wearable technology. It for once follows in the footsteps of other technology firms like Motorola and Samsung, who have already launched similar devices. Apple looks to break the mold from what consumer analysts haven't really labeled a success. To defy that lack of critical acclaim, it stands to reason that Apple will be taking a different approach than its competitors.
Taking a different approach has allowed the company to amass an unbelievable 89 percent share of all smartphone systems worldwide. The ubiquitous presence of these phones makes the possibility of syncing them to watches seem like a feature that could push the sales of the newer component of that dynamic.
Emphasizing the fashion statement that these watches will make should allow Apple Watches to set themselves apart from others offered by competitors. To do that, Apple will be releasing a special edition of the watch that will be made of 18-karat gold. Production of this edition of the watch is set to be nearly 4 million, 1 million watches for each month within the company's second fiscal quarter. If those production quotas are met, that would mean that the company would have to use nearly 746 metric tons of gold on these commemorative smart watches. That would equal about 30 percent of the world's annual gold production.
Vertical investments on behalf of the tech giant into gold refining technologies would assuredly accompany any production designed to make watches that can appeal to the fashion savvy. Ralph Aldis is a financial consultant who manages gold and precious metals funds. He spoke to the effects of Apple's possible increased consumption of gold.
"If the estimates of how much gold each watch contains are close to reality, and if Apple's able to sell as many units as it claims, it really ought to help gold prices move higher," he said.
What will that increased gold price mean to the price of these lavish wearables? With prices already projected over $5,000 for these special edition watches, it appears that speculation should lean toward the higher end of that scale. While this seems impractical and possibly a doomed effort, the attitude of Apple CEO Tim Cook defies those pessimistic assumptions.
"Our whole role in life is to give you something you didn't know you wanted, and then once you get it, you can't imagine your life without it." he said.
Shockingly, recounting the history of the iPhone would give credence to Cook's proclamation. When the company's flagship smartphone was launched in the third fiscal quarter of 2007, its sales didn't achieve 10 percent Apple's sales record set in the first quart of fiscal 2015. This makes the idea that Apple could have the same eventual success in the smart watch market a viable possibility.
The future of Apple's new products offers exciting possibilities for users and investors alike. For those trading in the precious metals market, the synthesis of gold and technology may boost their portfolios. Financial analysts are forecasting a strong market for gold even as the Chinese government continues to buy more than the rest of the world presently consumes. That economic climate may make the move for Apple to design lavish wearable technologies the right decision for its business.
As Apple continues to innovate the technology market, it is essential to understand how to utilize the abundance of hardware and software products offered by the technology giant. Apple's subsidiary FileMaker is a powerful tool for business professionals that seek to utilize data analysis to improve their operations.
At MC Services, we offer a wide range of support services to keep Apple customers satisfied. Mac repair services offered by our company allow users of Mac desktops and MacBooks to resolve any technical issues they may be having. Utilizing our services is a welcome alternative to scheduling an appointment at the Genius bar at an Apple store and waiting in a seemingly endless line. Our ability to attentively address any and all issues that you may be having with your Apple products makes us the ideal resource for your Apple Support needs.