Apple Watch May Not Wind Up Growth

Apple Watch May Not Wind Up Growth 

Apple proved Tuesday that it hasn't lost its swagger. Delivering on new-product hype is the next task—and not an easy one.

The company finally lifted wraps on its new Apple Watch, along with a mobile-payments system and two new versions of a larger-screen iPhone. The latter should make the company more competitive against oversize Android-based phones. The new iPhones go on sale later this month.

While the iPhone will remain the most important driver of Apple's revenue, it is tough to say if any of the new initiatives are enough to propel results far higher, or will mark yet another evolutionary step. That is important for the stock: investors have banked this year on Apple coming up with the next big thing.

The potential of the Apple Watch in this regard is tough to gauge. The device won't hit the market until early next year, and a $349 starting price is at a bit of a premium to rival offerings.

Apple made an effective pitch for the product, but the market for smartwatches is nascent. None of Apple's rivals has yet cracked the code for delivering a product with the right mix of style and functionality.

The Apple Watch could change that. Apple is launching three different versions in two different sizes. But, unlike previous Apple products that forged new product categories, the watch is essentially an upsell of the company's existing customer base.

Only customers with an iPhone 5 or newer will be able to use it. That may limit its ability to attract new customers to Apple's platform. continue 

Apple Watch May Not Wind Up Growth