In what he considers an ‘almost treasonous’ idea, Apple co-founder Steve Wozniak suggested that Apple could consider collaborating with its Chinese partners and manufacture a smartphone more suited for the local market. He added that the product shouldn’t be marketed under the iPhone range, but as a distinct Apple branded product. Further, Woz stated that Apple had not achieved the desired penetration into the local Chinese market because the local manufacturers understood the market better than them. He said that a smartphone developed specifically for the local market will most likely have very different features and functions than the iPhone.
He added that there were only very limited trade-offs that they could make on the iPhone ecosystem in order to reduce cost. Any further measures could compromise the overall performance and perception of the iPhone ecosystem. Instead, if Apple takes up a joint venture with a local manufacturer to produce an Apple branded device, which would only be inspected for quality standards by Apple, it may be able produce a low cost device and achieve better penetration in emerging markets.
In other news, reports suggest that two Taiwanese companies – Quanta and Inventec – might have received build orders for Apple’s iWatch, which is slated for a 2014 launch. Analysts suggest that around 40 to 60 million units could be manufactured in the first year itself. Even though Apple has not confirmed rumours regarding the iWatch, it did register the trademark for iWatch in Japan earlier this year. Apple could face stiff competition even in the smartwatch market, with Samsung expected to unveil the Galaxy Gear smartwatch in a few days. Depending on its functionality, it could also face competition from Google’s Glass project – an augmented reality head-worn display – which is now in its trial phase.
Rumors suggest that the iWatch could be priced between $150 and $200. Apart from the price, the success of the smartwatch would also depend on the range of functions available. Samsung’s Galaxy Gear smartwatch is expected to be a Bluetooth accessory for its smartphones. Being a wearable product, a smartwatch could also double as a fashion accessory if well designed. If Apple comes up with a solid, good looking standalone wearable device, it could turn out to be a bigger success than the iPod.
