Analysis of Apple Watch: Invention, Innovation, Demand & Technology

This report provides a comprehensive analysis of the Apple Watch, exploring the concepts of invention and innovation within the wearable industry. It examines the evolution of the Apple Watch, highlighting key milestones and comparing breakthrough inventions with incremental innovations. The report delves into the functional sources of innovation, focusing on manufacturers, users, and suppliers, and analyzes the impact of demand pull and technology push on the development of the Apple Watch Series 1 and Series 2. Furthermore, it investigates Apple's vision, leadership, culture, and teamwork, and discusses the forms of resistance faced by Apple. The report uses the Apple Watch as a case study to illustrate how these factors contribute to the success of a product and the importance of understanding market needs and technological advancements.

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MAJOR FINDINGS
I. Task 1
1. Definition of inventions and innovations
According to Peter Drucker (1985), Innovation is the specific instrument of entrepreneurs, the process
by which they take advantage of change as an opportunity for another company or service. It may be
presented as a discipline, capable of learning, capable of training. Whereas, based on the statement of
Varadarajan, R.(2018), Innovation is the production of value by the use of appropriate information and
tools to turn a concept into a new product , process or procedure or to develop a current product ,
process or practice. Specifically, innovations can be interpreted as initially commercialized
technologies by establishing and selling new goods or by introducing new manufacturing techniques
(Grant, 2002). Furthermore, according to Chris Freeman (1982), Industrial invention encompasses the
technological, construction, production, management and business practices involved in the promotion
of a new (or improved) product or the first commercial application of a new (or improved) process or
machinery.
In term of invention, according to Mihaela Diaconu (2011), Invention applies solely to the field of
technology. It denotes the phase in which a new technical artifact is constructed, typically with some
understanding of its utility in the economy or society. Invention consists of simple understanding and
still untapped study in a particular sector (Shaista E. Khilji, 2006).
The main difference between 2 concepts is invention is a brand-new understanding, while innovation
offers economic gains to the business. Therefore, we can easily understand that if the business plan is
not effective, there will only be invention without any innovation.
1. Emphasis of invention and innovation within the wearable industry
Time Name of products Name of invention/
innovator
Description
1972 Pulsar. Hamilton Watch
Company and
Electro/Data Inc.
Innovations breakthough: While
users had to click a button to see
the time, the Pulsar essentially
revolutionized the watch industry
and paved the way for its
intellectual descendants.
1983 RC-1000 Seiko Incremental innovations: the ability
to connect to most computers of
the time,
2012 Pebble Eric Migicovsky Incremental innovations: First
commercial smart watch, could
display messages from a
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smartphone and select Android
devices.
2013 TrueSmart Omate Incremental innovations: This
watch will make calls, use maps
and make full use of Android
applications separately.
2014 Android Wear Google Incremental innovations: Through
combination with a 4.3 + version of
Android smartphone, Android Wear
will combine the features of Google
Now and smart mobile alerts.
2015 Apple Watch Apple Incremental innovations: The first
smart watch operate in the
WatchOS platform
2016 Apple Watch series 2 Apple Incremental innovations: Using
WatchOS 3 operating system
together with GPS, Chip S2.
2. The difference between breakthrough inventions and major, minor innovations
Inventions of
technological
breakthroughs
Radical innovations Incremental innovations
Establishing a foundation
to foster possibilities for
innovation. They produce
changes in order-of-
magnitude rather than
incremental
improvements over
current technologies
(Tushman and Anderson,
1986).
Represents the most
important developments
which are continually
leading to new business
markets (Richard Leifer,
2000).
Depicts negligible
improvements to already
existing products and is also
known as the enhancement
of products. (Dewar, R. D.,
& Dutton, J. E. ,1986)
The existence of technological inventions resulted in a mixture of existing knowledge and technological
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influences. In order to assess the increase in the potential of different forms of innovation while the
economic values added to the company do not result from these breakthroughs. The concepts referred
to above ensure that radical innovations are highly demanding in terms of skills and abilities that vary
from the original knowledge, while incremental innovations rely more on existing goods. According to
Wilemon and Barczak (1991), it is critical that people who manage major innovations are encouraged
to produce more creative ideas by being in a self-contained workplace. In the other hand, minor
products tend to be produced in order to meet the real requirements of customers for the products.
II. Task 2
According to Von Hippel (1988), the word 'functional innovation sources' refers to the manufacturers,
consumers and suppliers of innovation. The functional source of innovation includes classification of
companies and people as regards the functional relationship from which they benefit from a certain
innovation in products, processes or services. The manufacturer of innovation will expect this
innovation to benefit from the production process. In the meantime, the stakeholders that want to
benefit from the use of innovation may be called users of that innovation and who hope to benefit from
the supply of that innovation are the suppliers of that innovation. Turning to scenario, Apple Watch
Series 2 has a dual-core Apple S2 processor, waterproof up to 50 meters, a double-bright camera, and
a GPS receiver. In addition, with outstanding features from new products such as water resistance,
entertainment, setting up a separate training interface or health care, users have benefited from the
use of utilities. innovation. Specifically, with the focus on training issues and care and health monitoring
for users, Series 2 has used a fitness application for users' health, checking the fitness level and
activity of they through 2 main applications are Activity and Workout. As a result, Series 2 products
have received positive feedback and are widely used. Therefore, suppliers are the ones who directly
benefit from the welcome quantity of users. For manufacturers, they are also gaining benefits from the
process of manufacturing that innovation.
III. Task 3
1. Definition of demand pull and technology push
According to Di Stefano, G., Gambardella, A., & Verona, G. (2012), Technology push can be defined
as the driving force behind the production of innovative products in research and development of new
technology. Thus, the key point of Technology push is that the technological knowledge of the R&D
department can help create products to market. Thus, the direction of innovation will often come from
the technology knowledge of companies developing an innovative technology that will apply those
products in the marketplace, creating new demand for people. Meanwhile, according to Taylor, M.
(2008), The term Demand Pull often derives from the needs of the customer and the market.
Therefore, those needs of the customer will cause a wide range of products to flourish to help the
customer meet and address a wide range of needs. In addition, potential customers play an important
role in Demand Pull when they make requests for improvements to existing products. In order to
improve the production of successful innovations, technological push and demand pull have a stronger
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relationship by encouraging each other.
2. Apple Watch Series 1
To cater to the growing needs of today's growing majority of customers to make the use of electronic
devices easier and more convenient, the first apple watch was launched in 2015. Apple Watch was
born with the historic mission of protecting human health. Therfore, in the first generation of Apple
watch, they apply Technology-push. Since then, customers have applied the technology gadgets that
Apple watch brings in everyday life. In order to go beyond traditional timekeeping, high-tech,
computerized watches offer advanced services such as calling, texting and Internet browsing by
including operational systems which could include various functions in small devices. Therefore, in
2016, Apple released the Apple Watch Series 1, impressing with the new generation S1 processor
chip, offering more powerful performance and many different features compared to the previous
generation. It can be said that demand pull was applied when Apple created this product due to taking
creative ideas from the needs of the market. One watch can perform thousands of different operations.
A lot of people have changed their habits after using smart watches like these. They not only use them
to check the time, but also get more done even without a phone in hand. From listening to calls,
texting, listening to music to checking text messages, emails, ...
3. Apple Watch Series 2
The machine is designed more beautiful, more refined, with stainless steel frame, tempered glass front.
From these improvements, Series 2 has been widely received from customers. In addition, realizing
that customers have increasing demand for using watches when playing outdoor or water sports, the
2nd generation Apple Watch has water resistance up to 50m, can swim freely. roof. Because of better
water resistance, Apple also redesigned the watch's speakerphone to be able to emit the best sound
when immersed in water. "We are delighted by Apple Watch 's response and how people's lives have
changed." We are committed to wellness and wellbeing and think that our consumers will enjoy the
latest features of Apple Watch Series 2. "Apple Watch 2 Series is filled with features that allow our
customers to have a healthier life with a strong new double-core processor, water resistance 50 meters
and integrated GPS." Therefore, it can be said that technology push was applied when Apple
created this product.
IV. Task 4
1. Apple’s Vision, Leadership, Culture and Teamwork
 Vision and Mission
With its innovative hardware , software and internet services, Apple is committed to providing the best
personal computer experience to students, educators, developers and consumers worldwide. (Apple,
Inc., 2012). Therefore, Apple is constantly improving their products as well as expanding the market to
meet the needs of customers. This mission statement takes note of the changing market world that
affects Apple Inc. 's opportunities. Therefore, Apple always aims to provide the best experience for all
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customer segments, to meet the needs and preferences in different market segments, or here is the
wearable industry. With this vision, Apple has developed the Apple Watch line because their vision is
to create the best product available on Earth (Apple, Inc., 2012). Apple Watch was born to help users
keep track of information related to health. Tim Cook, the CEO of Apple, also often emphasizes the
role of smartwatch in encouraging users to be active. From the convenience of Apple Watch such as
health monitoring, more convenient to use. From there, Apple responds properly to their Vision of
bringing the best experiences to all customer segments.
 Culture
Apple has an organizational culture for continuous innovation (PAULINE MEYER, 2019). Therefore,
the most prominent features of Apple are always maintaining a level of innovation and innovation with
the common conventions of the company. Therefore, the introduction of Apple Watch is a breakthrough
when Apple is always innovating, upgrading their products and entering a different field. Apple
understands that organizational culture plays an important role in their development because it will help
all members unanimously engage, the decisive factors for their competitiveness. According to
PAULINE MEYER (2019), Apple's organizational culture often has 5 main characteristics: Top-notch
excellence, Creativity, Innovation, Secrecy and Moderate combativeness. Through each characteristic,
Apple's culture always emphasizes innovation and creativity through each product. The business trains
and encourages its workers to innovate in their personal work and contribute to the growth of the
product. In this way, Apple ensures that its target consumers continue to launch profitable and enticing
new products.For Smart Watch, corporate culture has a strong impact on the fact that they always
improve and upgrade smart watch products to serve the needs of customers.
 Leadership and teamwork
The organization continues to develop its cultural qualities to optimize human resource support to the
importance of companies in different markets around the world through Steve Jobs' leadership and Tim
Cook 's leadership. Apple shapes the organizational culture and uses it as a mechanism for strategic
governance and success. Since then, thanks to the seamless connection between the employees in
the company, it has helped the company to achieve the overall goals and orientation of the
organization, which is Innovation, creating the best products. around the world (Apple, Inc., 2012).
Therefore, Apple Watch was born with the mission of helping users better monitor and protect health
issues.
2. The reason for the objection
Three forms of resistance are faced by Apple: rejection, postponement and opposition. This objection
arrives in two forms, the stage of pre-conviction and the stage of post-persuasion. The objection
emerged during the pre-persuasion process for two reasons: the prospective buyer thought that due to
the shortcomings in terms of quality and utility, the product was not of high value relative to the price,
which is because many consumers placed their expectations on conventional watches. They are
powerless to adjust their minds on conventional watches and smartwatches, so they do not embrace
them. Consumers may already have a negative bias against the commodity, which is called passive
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novelty aversion, in the post-persuasion process. This is attributed to 2 psychological variables: a
desire to embrace the present and adjust fear because it will have threats and cause disappointment.
V. Task 5
1. S-Curve for the wearable industry
 Apple:
 Samsung
 LG
 Garmin
 Lenovo
2. Performance of Apple Watch over the time
The first Apple Watch to be released in September 2014 was after the iPhone 6 was launched by
Apple and sold in April 2015. The Apple Watch has since been a key gadget in every iPhone user's
wrist.. The price of the Apple watches at that time was quite high, making the product unprofitable and
because some groups of people did not understand the features of the product, so they did not want to
use the smart watch at that time. However, in 2016, Apple Watch launched a new product line with
outstanding features such as heart rate monitoring, stress level (stress level), step count, notification,
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weather, navigation. , .. Thanks to the integrated electronic heart rate sensor, the watch has brought
more accurate results, supports early detection of abnormalities as well as cardiovascular diseases,
protects a heart. healthier. With its affordable price tag, Apple watches have become popular in the
market and become a strong competitor in the wearable industry. However, despite many
shortcomings, Apple is constantly making great improvements to this product line and beat competitors
in the same industry. The Apple Watch has a traditional square face design with a screen that's about
30% larger due to the miniature bezels around. From the original product to the 5th generation product,
the Apple Watch has a distinctive design style and makes it easy to see at a glance. Meanwhile, the
Galaxy Watch follows the original design with a round watch face. Thanks to that design of Apple
watch that has helped users to perform operations on the watch more convenient and easier instead of
round faces like Samsung, LG or Lenovo. In addition, moving to the next highlight, the Apple watch has
in it a variety of applications that are extremely useful to its competitors, such as a training program
setup app, a ride-hailing app. Uber often books hotels as well as integrates with other Bluetooth remote
control software such as garage closures, Alexa virtual assistant, or home power management ...
Those are extremely impressive points that Apple has. Improving its products in later versions and
helping Apple's revenue skyrocket, outpacing other smartwatch's apps on the operating system.
According to the Apple homepage, Apple Pay is the notable point that the rest of the smart watches.
Apple pay is a wireless payment form (through NFC) allowing for cardless purchases. Your cards and
ATMs are stored on your iPhone. That is the great utility that Apple can bring to users.
3. WatchOS performance compared to others
 WatchOS
WatchOS first appeared with the first-generation Apple Watch in April 2015. This is a similar iOS
platform developed by Apple and only applied on its smart watches made (Apple , 2012). From the
date of launch up to now, WatchOS has grown to the 5th version and is evaluated by experts to be
very stable when connecting to iOS devices. Currently, WatchOS 5 provides users with many useful
features such as exercise, automatic workout detection, web surfing right on the watch, turning Apple
Watch into a radio, .
 Android
According to James Chen (2020), Android is a Linux-based open-source operating system published
by Google itself, built for computer makers, operators, and programmers to easily access and freely
change the open source. The Android operating system is actually installed into the smartphone ,
tablet, smart TV, and many other clever home devices, Currently,
 Real Time OS (RTOS)
The Real Time Operating System, widely known as RTOS, is a software component that easily
transitions between tasks, giving the appearance that several programs are running concurrently on a
single computing core. In reality, the computing core can only run one program at any time, and what
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RTOS is really doing is easily flipping between individual programming threads (or tasks) to create the
appearance that several programs are running concurrently (WITTENSTEIN, 2020).
 Tizen
Tizen is an open Linux-based Android operating system that is an operating system for handheld
computers , tablets, smart TVs and smart cameras. Tizen is a Linux affiliate project developed by a
variety of major tech companies, including Intel and Samsung. In 2014, Samsung launched Tizen's first
smartphone operating system (Tizen, n.d).
 Wear OS
Officially known as 'Wear OS by Google' and formerly known as Android Wear, Wear OS is Google's
version of the Android open operating system for smartwatches and other wearables. Android Wear
can combine Google Now features and mobile alerts in the form of smart watches by attaching to
smartphones running Android version 4.3 +. On March 18, 2014, with the announcement of a
development release, the foundation was announced.
 Linux
According to Margaret Rouse(2020), Linux is the name of a computer operating system and also the
kernel name of the operating system. It is perhaps the best known example of free software and of
open source development. Up to now, the Linux operating system is widely used, especially in server
arrays as well as Internet of Things devices. The sign at the airport or the money changer at the ATM
or the server of this website ... are most likely running on the Linux operating system. Even the world's
most used mobile operating system, Android, is built on Linux
 PebbleOS
Pebble OS is a closed-source operating system which was first introduced on the market in 2013 and
used on the Pebble smartwatch. Pebble OS is a closed-source operating system that was first
launched to the market in 2013 and used on the Pebble smartwatch. The custom RTOS kernel used
for Pebble OS, which connects via Bluetooth to apps from two other regular operating systems,
Android and iOS.
 WatchOS performance over its rivals
According to exhibit 2, Apple watch always maintains its market share thanks to the capabilities of the
product.WatchOS has some outstanding strengths that outperform Android in many ways. In particular,
WatchOS and other Apple operating systems are appreciated for the ability that smartwatches are
compatible quickly with products in the same ecosystem with them but extremely safe and convenient
by Apple. focus on security. Security is the highlight that makes it more popular for users than Android.
4. . The 4Ps of innovation of Apple / Innovation Funnel
 Paradigm
Apple was initially a computer sales company. They gradually spread to other areas, such as the
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development of electronics items such as music players or notebooks. In 2001, after having gained
significant success with the iPod music player, Apple focused entirely on digital audio equipment. After
that, several models of the iPod were released. Since then, Apple has moved to different innovations,
starting with the breakthrough of the first iPhone mobile in 2007, followed by the introduction of the
Macbook laptop in the following year. Two years back, with the first iPad version, it was a smart phone,
and most recently, with the Apple Watch product launched for the first time in 2015, Apple expanded to
the smartwatch market.
 Position
In terms of brand, Apple is the company with the largest number of customers in the world thanks to its
great influence. Apple has been a leader in technology and creativity every day from becoming a
computing company. New products from Apple reflect beauty and sophistication as their Apple
products focus not only on product characteristics but also on aesthetics. Apple 's products are almost
exclusively priced, all from the all-in-one iMac computer to smaller machines like the iPod, which are all
technologically superior yet highly costly. Cash was always aimed at the user market of Apple. But
Apple has made some changes and not only can Apple commodities be provided by capital buyers, but
also by people from the lower classes. But, instead of changing it, Apple's position and market
segment has increased (cafef.vn)
 Product
They still have new designs for Apple and use creative approaches in the area of product creation. The
best example of this is the Apple Watch Series. In Series 1, as they have a range of features in the
wellness category and act like a mini smartphone, their watches have outperformed their peers, only a
couple of companies can do so. Health and wellness features have been significantly updated through
series 2, widening the customer base for both gyms and swimmers, along with many interface choices.
 Process
As its products are too expensive compared to the per capita income in developed countries, Apple
plans to extend to developing countries in response to slow growth in developing countries. The most
noticeable example is that when Apple offers customers options over the quality of their watches when
they buy, Apple has extended its product division into low-end and mid-range divisions.
b) Innovation Funnel
There are two consecutive models reflecting development in a company's funnel, showing which one
should be selected by the company. The concept below will also be adapted by major technology
corporations. In this wide company, the role of R&D in the production of product ideas is critical
(Wheelwright and Clark ,1992).
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Model 1
The model 2 is used for small, start-ups company:
Model 2
The two versions represent three levels of circles, indicating circles are new items, the coloring
represents the production level and the circle size is the symbol of the project scale. Open innovation
may be recognized as the use of internal and external information channels to facilitate internal
developments and to increase the scale of the market for external uses, as set out in Chesbrough
(2003). In summary, open innovation can be interpreted as a collabo method in innovation procedures
with external sources (Veer et al . , 2013, as stated in Ullrich and Vladova, 2016). Open innovation
funnel is used to understand the start of Canon's creative ideas
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Open innovation funnel
In the conceptualization, design and development of Apple watch products , Apple implemented an
open innovation funnel model. As described in Task 2, customers are interested in using more
technologies but want to retain high human contact. The success of the Pebble project Kickstarter – a
smartwatch project in 2012 has not been long since. Apple had previously given an idea of such a
need and case. Tim Cook, CEO of Apple, believes smartwatches to be a bright concept and to be a
market for talent in the future. Steve Work, former CEO of Apple, was also invented in order for
consumers to conveniently verify the condition by incorporating fitness and sport relats services into
technology. Tech legend Steve Jobs greatly influenced Apple's decision to develop smartwatches,
Apple Watch was on the market more than a year ago, but the company has yet to disclose how many
products are sold. Analysts estimate that 13-15 million watches have been sold by Apple, with sales of
around USD 2-3 billion. The treatment of pancreatic cancer by Steve Jobs has a huge effect on the
board of Apple. The organization has many inventions and ventures related to health, most of which
concentrate on helping individuals store and interpret data and making the relationship between
doctors and patients more effective. It's less upsetting. Journalist Tim Bajarin claims that Apple strives
to boost the wellbeing of clients using its products as well as the whole healthcare system-a mission
that Steve Jobs gave them before his death.
VI. Task 6
1. Success of Apple
According to Apple Inc.(2012), Apple Watch is the most attractive watch in the Apple lineup. Although it
has never made a watch before and leaves customers scared by waiting for it to be launched, the
product has created a massive craze in the smartwatch industry. Since the first version of the Apple
Watch was released. The first "fashion" Apple watch is a luxurious watch, with softer corners on each
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side of the screen in a square watch style. It's a characteristic theme that's hard to mix with Apple's
smartwatch lines. Apple also sells a range of Apple Watch bands that allow users to make changes.
The brace can also be removed very easily. The output of Apple watches is also influenced by
hardware controls. With its full organizing method, smooth processing chip, and numerous smartphone
applications, Apple Watch will easily create customer confidence. After the introduction of the first
smartwatch, they have been very careful to equip their products with user-friendly features. Today , the
brand has become an important part of the smart watch market. Apple products are mostly high-end,
luxury-built platforms that have a fantastic user experience.
2. Managing innovation resistance
Apple had to reinforce its market share in both developed and emerging markets in order to retain a
global leadership role. The ability to navigate various challenges that were sure to cause difficulties
was also required. A big challenge for creative goods has always revolved around resistance
management. The related challenges stretched across several dimensions and included the inclusion
in future generations of the watch of desirable innovation features; the management of customer
characteristics that could influence resistance; the drafting of value ideas and associated marketing
mix configurations to form engagement techniques that demonstrate the superior value generated by
Apple Watch; and
3. Frugal innovation
According to Zeschky, M., Widenmayer, B., and Gassmann, O. (2011) frugal innovation is classified as
goods or services generated from constraint capital. Previously, in 2013, there was a statement that
creative process design was frugal innovation, since customers were the key force in the production of
goods that were inexpensive, available, suitable and adaptable. There are three key conditions for a
commodity to be called frugal innovation: cost reduction, concentration of core functionalities, optimal
level of efficiency (Weyrauch, T., Herstatt, C., 2017). The Apple Watch SE launched in 2020 is known
to be a fugal breakthrough with cheaper costs, key features and better performance from Series 3. In
Apple 's sense, the inclusion of features such as the Series 6 launched at the same time needed to be
reduced in this version, and the use of aluminum, which is the cheapest casing material, was added to
it in order to level up their competitive edge that contributes to the economy.
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