​Apple Watch: It's an Internet of things play

Apple Watch appears to be designed to plug Apple's emerging ecosystem of Internet of things services. Sure, it'll sell iPhones too, but the real win may be Apple's various platforms for the car, health and commerce.
Written by Larry Dignan, Contributor

Apple Watch has been billed as a fashion statement, the emergence of the smart watch as a real device and a way to generate iPhone sales. Perhaps it's more about the Internet of things ecosystem.

When Apple Watch was revealed on Monday, a lot of the moving parts were already known. And then Apple CEO Tim Cook dropped a few items that were begging to be connected.

Among them:

  • ResearchKit;
  • HealthKit;
  • HomeKit;
  • 700 million iPhones sold;
  • Apple Pay;
  • Car Play.

Whether it's medical research---you and your health as a medical research tool---a Coca Cola vending machine, health monitoring and payments it all adds up to a touch point for Apple. As Apple blends its way into home security and other things in your life---appliances, diagnostics, diabetes checkers---it becomes a consumer front end device. Rest assured that the Apple TV will be another end point in Apple's IoT strategy.

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JMP Securities research analyst Alex Gauna didn't go too deep, but he highlighted the IoT potential. He said:

We view the Apple Watch as a reasonably well-executed step to furthering the value proposition around other IoT offerings being developed within the Apple Pay, Car Play, HealthKit, HomeKit, and ResearchKit initiatives.

Indeed, the proper way to look at the Apple Watch is that it's another cog in Apple's halo effect. The difference this time is that the Apple Watch isn't really expected help sell a Mac or iPhone (it doesn't need the help), but does move services.

Apple Watch, in pictures

Those services are the future of Apple's business. It's hardware today and Apple Pay and subscriptions tomorrow.

So while we ponder Apple Watch Edition starting at $10,000 it's worth keeping your eye on the prize. That prize is the Internet of things.

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