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Yeah, but does it automatically adjust for the start of Daylight Savings Time?
That’s just one of many things I’m wondering about today, in the wake of Apple’s (AAPL, Weiss Ratings: A+) big watch reveal in San Francisco!
So what did CEO Tim Cook unveil about the Apple Watch a few hours ago?
Apple will offer watches ranging from $349 to as much as $10,000, depending on what functionality, band style, and appearance you’re going for. Materials will run the gamut from aluminum to stainless steel to 18-karat gold and sapphire glass. Pre-orders will start April 10.
For reference sake, Apple’s most expensive product up until now was a high-end Mac Pro computer selling for around $4,000.
You’ll be able to check texts and emails, answer phone calls (via a built in microphone and speakers), track health and fitness information, map your location and more. You’ll also be able to customize the face of your watch, with a photo or just the time or any combination of apps and features.
Battery life was a key issue heading into the presentation, and Apple said users can expect to have about 18 hours of power. That’s clearly less than you get with other wearable devices or smartwatches already on the market.
In addition to the watch news, Apple also helped unveil “HBO Now,” a service that will give consumers access to that cable network’s programs at a cost of $14.99 amonth through their Apple devices. The move underscores how consumers are increasingly accessing content via a whole host of alternative sources beyond their standard cable TV connection.
Finally, Cook talked about the rapid uptake of Apple Pay, a price cut for its Apple TV product to $69 from $99, and the high level of satisfaction with the company’s iPhone product line.
These new product reveals are legendary in the tech world. They generate huge amounts of press, and have done so ever since former CEO Steve Jobs unveiled the original iPod and iPhone.
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| The Apple Watch – are you buying? |
But do you really need an Apple Watch on your wrist, especially if you already have an iPhone in your pocket or purse? The demand for other smartwatches from other vendors hasn’t exactly been strong – more on the order of several hundred thousand units sold, rather than several million.
Forbes.com basically called the Apple Watch a “Me Too” product, rather than something revolutionary. One analyst from Pacific Crest, Andy Hargreaves, also wrote: “We cannot think of what Apple Watch does better than iPhone other than collect health/fitness data, which can be achieved with smaller, cheaper and more appropriate purpose-built devices.”
My wife uses a Fitbit band to track distance when she runs or walks, for instance. I use my iPhone and the free “MapMyRide” app when I bike – securely attached to my upper arm via a comfortable sports case. I certainly don’t anticipate adding an Apple Watch to the mix. If the broader consumer audience takes the same view, that could make it hard for the company to hit the 14 million in sales mark this year. That seems to be the general consensus among analysts of what would be deemed a success.
| “Bottom line: Apple has been an absolute juggernaut the last several years.” |
Bottom line: Apple has been an absolute juggernaut the last several years. It is being added to the Dow Industrials. It dominates the consumer tech market now much as its former arch-competitor Microsoft (MSFT, Weiss Ratings: B) dominated the PC market in the 1990s.
But if the Apple Watch flops, it could put a real dent in the company’s momentum. So as sales begin next month, Apple investors would do well to pay close attention to see if momentum is strong out of the gate – and if it can continue to build as the year rolls on!
So what do you think? Is the Apple Watch a “must have” tech accessory? Do you think the features, apps, and other details make it a worthwhile purchase for the relatively hefty price? Or is this a rare miss for the tech giant? What do you expect will happen to Apple shares in the wake of this significant product launch? Let me know at the Money and Markets website when you have a chance!
| Our Readers Speak |
Is the job market really improving? Will that lead to higher interest rates? And what about health care – are we ever going to get the system right? Those were some of the questions you tried to answer on the website over the weekend.
Reader The Skeptic lived up to his name, questioning the jobs data by saying: “The unemployment rate fell yet again, but so did the labor participation rate. Theoretically, the unemployment rate could fall to zero if everyone who is unemployed quits looking for work.”
Reader Bill T. raised another key issue – the quality of jobs, versus the quantity. He said: “I am retired, and so I don’t know much for sure about the employment market. But I have to wonder about the numbers. Are these ‘jobs-created’ numbers full-time jobs, or full-time equivalent jobs?
“My brother works for a big box sporting goods retailer in a growing Montana town. He sees jobs being created in his area, but they are all part-time positions. Full-time positions at his store have been eliminated, due to the Obamacare insurance constraints. Most full-time employees have been converted to part-time, and part-timers have seen their hours cut back drastically. There are now many more people working at his store, but almost all are part-time employees. Could the numbers be misleading us?”
Meanwhile, on the interest rate front, Reader Tommr said we should expect financing costs to continue rising. His take: “Between the stronger-than-expected economic news and the Fed’s increasingly hawkish tone, interest rates are naturally beginning to rise on their own. This is the way it usually happens and the Fed will adjust to the markets, eventually.”
But Reader Troy thinks recent currency market moves will cause the Fed to hold off. His view: “The Fed will find reasons not to raise rates until we see a clear sign that inflation is headed above their 2% target. In a world where many nations are lowering rates or doing their own versions of QE, holding still near zero is enough to send the dollar soaring, which is already hurting imports. Any rate increase would only make the matter worse.
“Since the Fed has two major objectives — to control inflation and stimulate the economy — the Fed will try to counter the dollar’s recent rise. This means they will soon state there will be no rate increase.”
I appreciate the feedback, guys. I believe the Fed will in fact need to start raising rates soon, but will try to counter the impact on the dollar via more verbal intervention. If that doesn’t work, we might end up seeing actual central bank intervention because I don’t believe the Fed wants to see the dollar continue to surge.
Lastly, Reader Sharky91 weighed in on health care by saying we could learn a thing or two from our foreign counterparts. The comments: “I have two Brit friends who work here in the U.S. They don’t understand why we can’t figure out the healthcare issue.
“They like their system in the U.K. (despite what you hear on Fox News). They have a good working model that keeps prices down and satisfaction up and all we have to do is copy it. They’ve even offered to help us fix our system, but we refuse to accept their help. It’s kind of sad, really.”
So what do you think? Is a U.K.-style or Canadian-style health-care system a better option for us? Is the Fed shackled by the dollar, or is it going to raise rates regardless of the greenback’s rise? Any other issues you want to raise? Then head on over to the website and share them with your fellow investors!
| Other Developments of the Day |
What do you think about the increase in M&A? Is it another sign of a bottom in markets like energy and metals? And how about ISIS? Is the group getting stronger or weaker? Let me know your thoughts on those issues and any others in the press at the website.
Until next time,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
{ 43 comments }
I think that for the time of day, I’ll just look at other people’s watches and save the (How much?!) $350 or more.
Of course, I could get a wearable sundial.
What idiot pays $15 a month to watch HBO programs on a 2 inch screen? Or even a 5 inch smartphone. That’s ridiculous. I wouldn’t watch anything except on my 82-inch Mitsubishi – the other smaller TVs in the house don’t even get used anymore, let alone watching on a hand-held or wrist device.
Apple TV is a device, like a Roku, that you use to access programs for your 82″ TV. Nobody watches TV on a 2″ screen.
HBO programs are not just for the watch,can be 30″ screen,if you don’t like it leave it out like your smaller TV in a house………
Why idiots are not reading news with more logic,before making a comment………….
My friends in Denmark are very pleased with their health care. We COULD take the best parts of several healthcare systems and come up with a really good one. But just as we don’t copy the best parts of other education systems, we won’t. Why? Republicans believe that good only occurs when someone is profiting from it. How could anything be good if a CEO isn’t raking in millions of dollars. This is what they are trying to do with our education system. We could just take the best parts of Finland’s system. They keep waving it our face, but don’t want to do what it takes.
The reasons Republicans say that is because it’s generally true. If no one is profiting, nothing gets refined and adjusted to be efficient, so yes, that’s when good does occur.
Name one thing, anywhere, that’s run better by government, or even cheaper, unless “someone is profiting from it.” Well, maybe graft, yes….
Most of the health care payment systems in other developed countries work better than ours, because they are run by the governments. They certainly cost less per patient! Obamacare is not the answer for the U.S. because it keeps private insurance companies in the driver’s seat. Universal payer would change that. It would lower our health care costs, but leave the providing of care to private caregivers and health organizations. In other words, keep your doctor and stop paying insurance companies for his/her work! Check out Physicians for a National Health Plan for a simple and complete explanation.
Today’s technology should enable the medical industry to treat patients at home. Many of today’s jobs have gone back to small production producers with online customers. This is similar to industries like farming and blacksmithing of 100 yrs ago. Perhaps doctors need to adjust to making visits – and today’s technology can really help. Unfortunately the tech titans are trying to one-up each other with glamour gadgets instead of making meaningful progress with medicine and tech. Doctors have expressed interest in Google Glass, but Google practically ignores that by spending and focusing on consumers. Tech companies are mainly trying to make a product for which there is currently no market hoping to out-innovate one another. I can’t help but think that our legal system has destroyed this type of innovation in healthcare which could leverage technology to enable better treatment at a lower cost for all people.
If the trial lawyers would back off, it would probably happen. Now, no, because no one is going to let go of control of the situation when they’ll be held accountable for any problem, whether their fault or not.
And now that the government is going to pay for it, who cares if it’s efficient, right?
We are a Canadian family with three sons and a daughter living in the USA; all dual USA/Canadians. The USA Health Care system is so much more costly in every way than our Canadian. Typically, my second son, his wife and two little kids have elected for a $12,000 deductible medical insurance policy, even though they are middle class people, young professionals. From drugs to medical diagnostic tests, doctors visits and specialists, everything in the USA is many times more expensive than what we pay here in Canada. Our Canadian care is excellent, we don’t tort-sue our physicians, either. All the FOX News and Libertarian hysteria about our system is a grotesque caricature.
It’s not all about the cost. It’s about access to quality care, and almost without exception, the Canadians I know who talk about it say they wait forever for inferior care, unless they’re having a heart attack.
In the US, until now, at least you could GET care, and it was worth getting when you did.
We might as well race to the bottom of the heap. We’re getting there fast!
We have had so much government intrusion and regulation of our healthcare system over the past 50 years that it hasn’t been free market for a LONG time. If our gubmint would GET OUT of the way, open the markets wide and free, we could get our system back on the road. And yes, you are right about torts……Democrats have fought tort controls for 100 years. And THAT is a big part of the problem too. But regarding Canada, we still have Canadians coming down here for heart surgery because they cannot wait months. Your provincial governor flew to Miami a few years ago because he needed heart surgery and could not wait on the socialist system. Even with all of the gubmint interference, we still have better care. But that will not last for long with the Obama-Democratic Socialist Party.
U.S. healthcare outcomes/performance have been poor for quite a while. Here is a Forbes article: U.S. health outcomes rank last of ten countries, including Canada!
http://goo.gl/2dZ8Hp
Re: UK and Canadian Healthcare systems. Having traveled in both countries I found the only people who liked those systems were the ones who didn’t need treatments. The others complained of long waits and treatment restrictions.
I will purchase an Apple Watch, as I wear a watch anyway, and want to use Apple Pay, as well as other available apps, including the health monitoring. When more apps become available via the App Store, I will use them, including actual health care apps (when they are approved). Yes there may be some other wearables, but none of them look as good as the Apple Watch, or have the Apple ecosystem. These watches will sell, even as the iPhone sold despite the availability of alternatives (think Motorola, Blackberry, Palm Pilot, etc.).
When it comes to healthcare, the U.S. consumer is the biggest sucker in this universe. The have swallowed hook, line, and sinker that it is only when the “sharks” (private, for profit insurance companies) are involved that any insurance plan can even be considered. Just look at how Obamacare had to be twisted beyond anything sane to get it passed into law. I am U.S. born and have lived in Canada since 1963. I still have the same health card in my wallet given to me when I crossed the border. Works like a charm. My wife and I paid a total last year of less than $250 (total) for our healthcare contribution on our tax returns, and we get great care to say the least. In contrast, my wealthy brother in the U.S. caught cancer and died within sick months broke…..they let his widow keep the house only…out of compassion supposedly!
Hi!, Hugh:
My mom also died of cancer (bone marrow cancer that would pop her bones apart at any time without prior notice that such was about to take place) but thank GOD she didn’t die broke. Circumstances vary don’t they? So many of my friends and co-workers over the years have also died of cancer which causes one very unique question to bug my psyche every day and it comes out of reading OUR Lord’s prayer for OUR Father’s Kingdom to come upon Mother Earth exactly as it is in Heaven. Do they either study the cause or the cure for cancer etc. in heaven? In my opinion, if GOD could truly have His intentional will for every one of His children fulfilled, we would not have cancer nor many other Mother Earth born diseases but everyone disagrees with me within my family. We have seen so much cancer etc. that we are essentially programmed (desensitized) today to just accept it and hand it over to the Medical Profession where it primarily arouses the drives for profits and payments for expenses. In all my bible readings learning how Jesus focused on OUR overall health, there is no scriptures anywhere to be found regarding Him receiving anything but gratitude (if even that) but never any formal payment like we practice today but why not? One of my friends lost his wife, dad and brother each to cancer over the past 5 years. One of my co-workers lost his brother to cancer plus three of OUR co-workers have sense died from cancer also. My Southern neighbor died from prostrate cancer. My former accountants’ wife died from cancer. OUR head electricians’ wife died from cancer. Her grandson worked at a welding shop where his boss died of cancer and the wife closed the shop causing him to have to find alternative employment. All I can offer as consolation is two books by Pastor Leslie D. Weatherhead, THE WILL OF GOD (he divides gods’ will into gods’ intentional, circumstances will and ultimate wills) & LIFE BEGINS AT DEATH plus another book, I WILL LIFT UP MINE EYES, by Glenn Clark @ Macalister Park Publishing; (800) 407-9078, operated by Dan and his wife Sue. Please, Mr. Betts, if you can afford to and would be interested, purchase these 3 helpful publications and you might find yourself wanting to hand out copes to your family, co-workers and friends? GOD the gospel proclaims is LOVE that NEVER fails and it’s my prayer and hope by faith that mankind will head in that direction creating His disciples of all Nations. CHEERS:
RUSS SMITH, CA. (One Of Our Broke, Fiat Money Corrupt States)
resmith1942@gmail.com
We lived in Europe as a family for over 30 years before returning to North America. Our adult children and families moved to the USA, we retired in Canada, our homeland. As far as education goes, in the USA our grand children all attend private schools, except one set are home schooled by their( PhD and MA-Teaching degrees) mother. They are getting excellent educations. An adult son now is responsible for Computer Science services at a Catholic (Private) H.S. which is excellent. He formerly worked in the Baltimore Public Schools in a similar function. That was scandal wracked, the youth had poor quality computers and software, while high paid “Administrators” wasted funds and had to be fired. In Europe we found the Danish, Finnish and Dutch education to be excellent. Our children all attended Dutch primary & secondary schools; two also went to Universities in Holland. Standards were high, including foreign languages, math, music and sciences. Very different than in USA. American needs to apply best practices in education from other nations. Look at the Finns; they turn out excellent, educated, multi-lingual people. I taught them at a Belgian International business school and found them really superb from Finland, also from Denmark, Sweden and Holland.
When you grow up in a country where you are surrounded by other languages, you naturally become multi-lingual. It’s just as much the society and it’s environment as it is the education system. People in the U.S. are lucky, most of us don’t NEED to speak multiple languages, so therefore we don’t.
Pretty soon all of Europe will be speaking one language, but at the rate it’s going, it’ll be Arabic.
“…its environment…” Darned autocorrect….
Re Sharky91’s comment on the British health care system. I have no direct info on their system but I lived in Canada and I can tell you this…… There are shortages of doctors and hospitals. It works great if you’re well. If you get a chronic condition (bad hip or knee, bad heart, cancer, etc.) then it is terrible. You basically get to the back of the line and wait. Many Canadians come to the US to get heart and cancer treatment. The previous US system had major problems, but having government take it over is the wrong solution.
I worked for a Canadian company….and what you say is what all the Canadians told me too. Just do NOT get a serious illness!!!
Up hear in the great white north Canada. Every province has a Med Care Plan. Your Boss pays part and you pay a few bucks a month. But even if your underemployed your still coverd. It’s about $40.00 a month with no children and a bit more with a large family. But this covers everything. Hospital care Meds. Dr. appointments operations the hole 9 yards. But no dental plan is included. But we do have under 12 dental collage coverages. This is just as good as going to a dentist’s office for a young one. England has even a better coverage plan. But pays a lot more taxes then we do. By the way we pay a lot more then you do in the States. But in the long run. We get so much more coverage in more then one way. God Bless Obama Care
Appears to me that the Fed has two problems: Strong dollar and lack of inflation. What will they do?
APPLE AND THE QUARTERLY PATTERN
Money and Markets columnist and pundit Mark Markham wrote an article last year about the upcoming I-Watch and predicted it will not do much for Apple’s revenue. In fact, he predicts it will be a flop. He maintains there are plenty of watches out there. If you want a high-end watch, who is going to pick Apple over Rolex? Good points..
Apple stock is usually at its strongest seasonally after the Christmas season and into the New Year. Institutional investors often bid the price up before the next earnings season and especially before a new product launch. Then the quarterly numbers come in, often lower than the initial exuberance and the stock corrects. It could correct (down) to near $100.00 share for these reasons later on in the year, or for numerous other reasons.
Right now, the entire stock market ( S&P 500 ) is caught in a trading range or zig-zag pattern. It will be hard for Apple to go over $130/share just on the I-Watch success unless the broader market cooperates at the same time. Whether this happens in the short term is questionable. I expect Apple stock to go down before it resumes its climb to any new highs. There will have to be strong catalysts for either Apple and/or the broader market first. I will wait and see.
As Greg Gutfeld on Fox’s “The Five” said, “It could be a dead cat, and if they put the Apple Logo on it, Apple fans would buy it.”
Couldn’t have said it better myself.
Me, no. I have a watch, which tells time.
I have a phone (not an iPhone), which makes calls and does everything an iPhone will do, and then some.
And I have a computer, which does everything else I need. Why do I need this?
It’ll get snapped up by the trendies and fanboys/girls, and in 6 months, they’ll leave it in a drawer because they can’t figure out why they need it either.
But in the meantime, Apple will make another billion dollars. What a racket! They’re geniuses alright!
Personally, I am waiting for an easily portable device that combines phone, email, internet, adjustable Fitband for wrist or arm, medical apps and everything else available today. Lovely and fun for those who can afford many devices but even teenagers and rich young professionals may eventually get tired of plugging in and managing so many devices. Just a thought –
Since I am a Dick Tracy I think it is long overdue that the world catches up and I sure intend to obtain one!
Have you checked out STM a product that can revolutionize Health problems before they happen, can detect weakness spots in bridges and can aid the military among many other things.
The product that mounts under the ski on your shoulder will cost under $50.00.
Please check this STM out and let me know your thoughts.
Zacks has it rated a strong buy.
I have bought about 700 shares and will buy more if you recommend it.
Best Regards,
Warren
Looks like the machine translation didn’t work very well for you.
About employment, I understand that since 2008, the working age population has increased 16 million, while the number of employed has only increased 3 million. Also, wages have increased an average of .6 % per year, which would be less than the official rate of inflation. Thirteen million more people not working and those who are get paid less when corrected for inflation. Not quite 1929, but not too far from it.
The most brilliant government public relations move of all time was deciding to deliver the soup(food stamps) to the house instead if making people stand in line for it. If we saw pictures of 48,000,000 folks standing in line to be fed we would know it was just like the 1930s. 95,000,000 working age people doing basically nothing is a National Disgrace. That any of our leaders can look us in the face and tell us everything is OK and get away with it is unbelievable.
Build it, and they will come!
I think Apple watch will get customers , enough to make a profit ,for Apple,not like an Iphone or a Mac,but a new product to play with it or to show off to others.
Can you tell me why people pay for a Tesla,Bmw or a Mercedes car 3-5 times or more ?
They can go around to with a car under 10K or cheaper with no options…..
So,don’t tell who wants an expensive Apple watch instead using the Iphone with
longer battery life…..
Tesla car can take you up to 200 miles in 3-4 hrs and need a recharge,18 hrs.watch is not so bad per day……
Similar comments where made with no logic when Iphone or Ipad was initialy released…..
Give some time to see real results and not just guesing……
By the way Do you have any investments on Apple stock ?-Just curious
I think the 18 hour battery life is going to be a huge problem and I am surprised that they didn’t solve that problem before the rollout.I am sure they tried so there is probably no solution.I love Apple and have been riding it all the way up but I think this is a mistake….maybe a huge mistake.They probably need to cool it for a while and enjoy their success.
US people have a strange relationship to order and organisation. They do not like the International System of Measurements, but they insist on everyone having a middle name or at least a middle initial. They make Jr. or Sr. a part of a name but cannot get healthcare organised? Not so fast, they could if companies and politicians let them. They all make money out of this mess, so why would they want to change a thing?
Besides, “American exceptionalism” is above foreign input.
The watch is just another toy for those infatuated with all things Apple. I’ll stay with my Casio watch and PC.
No AAPL watch for me, just stock, though I am prepared to sell if the move to the Dow has the likely effect of drastically slowing its momentum.
Hey Apple, Do you have a light? Sure! The company is buying Solar Power like they have an addiction. :)
Hi!, Patrons Of Money & Markets Et. Al.:
From alternative information earlier in 2015, it was stated that Apple’s intention is to sell its’ gold watches into the Asian markets where people there have a more astute appreciation for gold and furthermore the alternative information was being guided by a wait and see if there would be up to two troy oz. of gold involved in the watches’ overall construction of each of its’ higher end models etc.? It would seem to me that the overall outlook in Asia is for much higher gold prices and so owning such a high end watch may for their purposes be an add on to their overall views of holding gold hedges? Sense Larry Edelson does a lot of worldwide traveling digging up information, perhaps he will become enabled to give us the pertinent data regards Asian attitudes towards the Apple watch issues; so we can better watch/understand this development as outsiders living in a country that has unlike Asia been programmed to be gold adverse?
RUSS SMITH, CA. (One Of Our Broke, Fiat Money Corrupt States)
resmith1942@gmail.com
Re: Apple Watch. For a number of years I had a Suunto. It was difficult to use and finally quit working, straps broke, had to change battery often, etc. I replaced it with a $300 Casio Pathfinder which does everything, easy to use, solar power, atomic time–really great watch. I doubt Apple can beat it!
Apple watch lacks two things to be a hit; necessity and applicability. It can only be viewed as a transitional product until the next blockbuster comes along (which had better be soon).
Look for surplus product and discounting in abouyt 5-6 months. Nothing shameful in this; not every company’s product is a hit every time (Edsel).
I receive all of my business calls to my Samsung smartphone. I bought the gearfit watch for one reason: to screen my calls and emails without taking my phone out . I give it a C+ for that end use, as the vibration is not strong enough to always be noticed, especially when I am in the factory and the noise drowns out the phone in my pocket. In addition, just as you get used to a minor pain after awhile, you will tune out the constant vibration and forget to look at the watch until the message times out.
As for the other functions, e.g., steps, exercise, etc, they were a novelty at first but to me, more trouble than they were worth. One other problem I have had is that I am on my third watch in 6 months due to screen failure. Buy the extra coverage!