Local brands pose challenge to Apple Watch in S. Korea

(MENAFN- Arab News) SEOUL: Apple's first smartwatch landed in South Korea one of the world's most competitive markets Friday drawing a good response from fans but analysts cast doubt on its long-term success there citing a tough challenge from local brands.

Eager South Korean consumers braved the onset of monsoon rains and concerns over a MERS outbreak which has killed 31 people to form long queues outside stores selling the Apple Watch wearable device.
"I'm very happy" said Lee Woo-Min a 40-year-old man who camped overnight to be the first in line outside a downtown store after buying an Apple smartwatch for 1239000 won ($1117).
Apple released three models in South Korea: Apple Watch priced between 679000 and 1359000 won Apple Watch Sport between 439000 won and 499000 won and the luxurious Apple Watch Edition between 13000000 and 22000000 won.
The watch arrived in six other countries Friday including Taiwan and Singapore two months after its initial launch in nine countries including the United States China and Japan.
The device has proved popular in those markets reportedly selling some 2.8 million units through June.
But analysts said Apple's expensive smartwatch would be a temporary hit in South Korea probably among hardcore Apple fans while other consumers may favor cheaper brands produced by Samsung and LG. "Because of strong brand loyalty among iPhone users Apple Watch will sell here to some degree" Mirae Asset Securities analyst Doh Hyun-Woo told AFP. But he said that the smartwatch market was still in its infancy adding that Apple's high-end products are "too luxurious to make any dent on the local market".
Samsung sells its new Gear S smartwatch at 327000 won while LG's costs 379000 won.
In Taiwan Apple Watch went on sale in 10 stores with 50 early buyers lining up outside the brand's flagship shop at the capital's famous Taipei 101 tower.
The price tag for Apple Watches in Taiwan ranged from TWD$11500 ($370) to TWD$400000.
But while it has been held up as a game-changer for smart wearables some Taiwanese brands are pitting themselves against Apple Watch with a minimalist "back-to-basics" approach.
Last month in Taipei home-grown brand Noodoe showed off its simple customizable smartwatch billed as "the opposite of the Apple Watch" which would reach consumers later this year for less than $100. Meanwhile Apple began selling its smartwatch in Switzerland Friday luring young consumers to ditch four centuries of Swiss heritage in favor of Silicon Valley gadgets.
Shaun Mettler was one of a crowd of about 40 people who lined up outside Apple's Zurich boutique to be the first in the nation to snatch up the new device which went on sale here Friday. The 23-year-old student said he hasn't owned a watch since his Flik Flak a Swiss-made children's watch that Swatch Group introduced in the 1980s. Now he's buying an Apple Watch because he says most timepieces aren't useful enough.
"A normal watch just tells the time and is about prestige" Mettler said. "The Apple Watch has a whole range of functions and the design is great. It will force Swiss mechanical watchmakers to come up with something new."
The Apple Watch may aggravate the Swiss watch industry's difficulties by attracting millennials who often don't wear watches. Swiss watchmakers already have to deal with a surge in the franc against the euro that's eroding profits plus a slump in demand from China the biggest market for their products. The industry's exports in May declined the most since 2009.
More than half of the crowd of about 40 waiting at Apple's store on Zurich's Bahnhofstrasse on Friday appeared to be under 30 years old. Many said it will be their first timepiece. "Young people are definitely the target audience of the Apple Watch" said Rene Weber an analyst at Bank Vontobel in Zurich who was part of the throng. "Swatch is now challenged to bring something to the market that will excite young people."
The Biel-based watchmaker which also makes high-end Omega and Breguet timepieces is responding to Apple with a Swatch model that will be able to make mobile payments. Other Swiss brands have also said they're introducing electronic devices including TAG Heuer Montblanc and Frederique Constant.