The secret weapon of the Apple Watch is its new price

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The most convincing update of its smartwatch range is not a feature, but its price: you can now buy a $ 199 Apple Watch. This represents a significant savings over the cost of previous models, as well as the new Series 5 smartwatch that starts at $ 399, or $ 499 with cellular connectivity.
Apple (AAPL) has reduced the price of its Apple Series 3 watch, a 2-year old device, with the goal of attracting new users – a tactic that the company has long deployed with its iPhones. Last year, the Series 3 watch cost $ 279.

Smart watches usually start at $ 300 or more, with the exception of Fitbit ($ 169), the second most popular portable clothing brand behind Apple.

"Apple vaguely bases its prices on the cost of producing a device, but it's more about the price that a consumer is willing to pay," analyst Ben Stanton told CNN Business. at Canalys. "A cheap price point for Apple Watch is important because much of the device's growth is currently coming from consumers who have never owned it before." He tries, and this seems to succeed, to use different demographics with different devices and prices. "

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Although not new, the Series 3 watch offers a handful of attractive features such as health and fitness capabilities, notifications and, as well, time verification. The company quietly killed its Series 4 model on Tuesday to further differentiate the low-end model of the 5-series, which boasts a faster processor and a display always on which still offers an autonomy of 18 hours.

"The lowest price Apple Watch 3 is a gateway to entice people to engage," said Ramon Llamas, research director at the IDC Market Data Company. "Comparatively, you pay 50% less than a new model – a much easier cost to swallow."

The Apple Watch has initially appealed to luxury consumers, but the $ 200 price makes it more accessible to a wider audience. Now, about the same price as a pair of AirPods, it's about the same price as Apple.

The Apple Watch was born from its humble beginnings, but it has made great strides since its launch in 2015. It now offers cellular connectivity, which means it's no longer needed from the connect to an iPhone to be fully functional and that it has a strong presence in the clothing equipment market.
The category is still behind the iPhone in terms of sales, but ahead of the iPad. According to IDC data, Apple sold a total of 23.3 million units last year, a number that is expected to reach 25.9 million this year.
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"It is strange to think that new users are waiting, knowing that the first one was launched more than four years ago," said Stanton. "Apple Watch has started very slowly, compared to its recent sales, but it could be a unique feature of wearable technology.The more people who wear it will be bigger, the more potential customers." will see it. "

For years, Apple has been relying on partners in the fields of research and medicine, from the University of Michigan at the World Health Organization, to strengthen its presence in the sector of health. During the event on the iPhone earlier this week, the company aired a video of customer testimonials about the impact of the port of the device on health, early signs of Heart attack to help a pregnant woman to know that she needed an emergency cesarean section. "Hearing these stories makes me sing my heart," said Tim Cook at the time.

The company recently announced a new application called "Studies", which will be launched later this year and will allow more Apple Watch users to participate in health research.

"Apple's watch strategy is evolving in interesting ways," said Stanton. "Previously, it was fitness with running, cycling or swimming, but now it extends to well-being." He began this effort with features such as guided breathing but now its newest tools, such as monitoring the noise level and menstrual cycle, really bring that focus on wellness to a new level. "

The latest Apple Watch, however, is still missing: an integrated sleep tracking feature – one of the most sought after tools by users.

"They prioritized diurnal features that needed enough power [to get you through the day], "said Frank Gillett, vice president of the Forrester research firm. You can get third-party apps to monitor sleep, but when will you charge [the device]? "

Those who switch to the 5 Series may be using their old Apple Watch and a third-party application to monitor the sleep timer while the news is being loaded.

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