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Stunning as the iPod/iTunes success proved to be, there is almost no connection to be made with this watch, except that it's a product Apple sells. I've tried to find any convincing explanation why this is the next iPod/iPhone/iPad, and the only case that makes any sense is a health and fitness monitoring. I'll admit that eventually many of us will wear devices that measure our vital stats 24/7, but let's remember that this watch doesn't do any of that whereas the first iPod most definitely held and played your MP3's. If the eventually does this monitoring in a revolutionary way, then I may be convinced, but right now it's less useful than a fitbit from two year ago. Additionally, wristwatches, seem retrograde for a company that did more to wipe out the need for wristwatches than anyone else. Smartphones are what people check the time with.
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Apple's Watch is not revolutionary, it's just a very good product ( as in : the best smartwatch out there ) and that's perfectly OK. The problem is that with Apple, there seem to be only binary positions in arguments : either it's a revolution, or it's a total fail. I don't know any other company in the world where this absurdity applies. There is a whole range of degrees between "Revolution" and "Fail" ( I know that is not your position, but there are a majority of arguments here that are like that )
One day, the technology in batteries and sensors and cpus will be advanced enough that smartwaches will become an essential personal tool. But one would be crazy if he thought that Apple will just wait until technology reaches that point, there is pressure on them to start occupying the terrain as soon as possible, even if that means that the Watch will be another "hobby" like the Apple TV.
Also don't forget that it's the upcoming apps that are really going to give the aWatch it's usefulness. You can't expect Apple to provide everything themselves. Personaly, I only switched from "Cool smartwatch, but I don't need this" to "OOh, I think I want one now" after seeing previews of Citymapper's app for the Watch . Their iPhone version has become essential to me, and it's utility is even more justified on a watch. And there are other apps that made me reconsider once they announced availability for the aWatch , like 2DO, etc..
And lastly, I totally disagree with your assertion : " Additionally, wristwatches, seem retrograde for a company that did more to wipe out the need for wristwatches than anyone else. Smartphones are what people check the time with." 90% of people I know have a watch on their wrist. Maybe it's an age or a cultural thing, but I see far more people on the street wearing a watch than not.
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