• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
TechApple Watch

This could be Apple’s secret Apple Watch strategy

By
Jack Linshi
Jack Linshi
Down Arrow Button Icon
By
Jack Linshi
Jack Linshi
Down Arrow Button Icon
March 13, 2015, 3:06 PM ET
Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Inc. Spring Forward event in San Francisco, California, U.S., on Monday, March 9, 2015. Cook returns to the spotlight to answer questions on many of the Apple Watch's key selling points, including price range, battery life and when in April it will reach stores. Photographer: David Paul Morris/Bloomberg via Getty Images
Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Inc. Spring Forward event in San Francisco, California, U.S., on Monday, March 9, 2015. Cook returns to the spotlight to answer questions on many of the Apple Watch's key selling points, including price range, battery life and when in April it will reach stores. Photographer: David Paul Morris/Bloomberg via Getty ImagesPhotograph by David Paul Morris — Bloomberg via Getty Images
Add Fortune on Google for similar content.

This post is in partnership with Time. The article below was originally published at Time.com.

In Apple (AAPL) CEO Tim Cook’s words, the Apple Watch is “incredibly beautiful.” But some are saying it’s “incredibly unnecessary.”

Apple followers haven’t been shy in arguing that the upcoming Apple Watch will be a flop. Dismissive reviews of Apple’s first wearable are plentiful (“a thick, ugly clunker,” “a very stupid idea“), while analysts’ fresh estimates of first-year sales have trended on the low side. Investors haven’t been too optimistic either: Apple’s stock fell 2% Tuesday, a day after it unveiled more Apple Watch details.

But what few realize is that Apple has a 3.7 million square mile ace up its sleeve: China.

It’s no secret that Chinese consumers love their Apple products. Chinese resellers and admirers alike traveled the world and lined up for days to sweep up Apple’s latest iPhone last fall. Some constructed iPhone 6 “undergarments” to bypass customs duties on the way home. One man even used 99 iPhone 6 units to propose to his girlfriend. (She said no.)

Now, with the Apple Watch heading to China on April 24, the country’s Apple fans have already begun generating outlandish headlines. A Guangzhou man was arrested this week for selling drugs in order to finance his Apple Watch, clearly unwilling to settle for one of many cheap knockoff Apple Watches fresh on China’s black market. Those counterfeits are good news for Apple—they’re an indication demand will be high for the real thing. Previous wearables, like Samsung’s Galaxy Gear, had never been popular enough to make it into China’s counterfeit market.

Apple, then, is likely counting on its legions of Chinese fans to scoop up Apple Watches to help boost worldwide sales. But China is no back-up plan. In fact, given Apple’s loyal following in China, the Apple Watch could very well have been made for China.

The Apple Watch’s biggest advantage in China is deceptively simple: Few Chinese consumers laugh when Apple touts the device as a luxury item.Apple became China’s top luxury brand for 2015, outranking labels like Louis Vuitton and Gucci. More recently, Apple’s status has risen as Chinese consumers of luxury goods prioritize functionality overostentatiousness—a taboo that China’s President Xi Jinping deplored as “unhealthy,” criticizing Chinese elites’ obsession with status symbols like Rolex watches.

Even better for Apple is how much Chinese consumers value brand names in luxury goods. According to Digital Luxury Group’s (DLG) 2014 report, 73% of online searches for luxury watches are about brand names, almost twice the rate of Americans. Apple’s brand recognition could seal the deal for the Apple Watch in China—but it could also hurt sales in the U.S., where Apple is seen as a tech brand rather than a fashion label:

All this will help ease sticker shock, too. While Americans will compare the Apple Watch’s $349-$17,000 price tag to the cost of consumer electronics, Chinese consumers are more likely to stack it up against luxury timepieces. The worldwide median price of a luxury watch is about $10,700, according to DLG. That means the Apple Watch Sport (starting $349) and Apple Watch (starting $549) are inexpensive by comparison, while the gold and silver Apple Watch Edition models that start at $10,000 aren’t crazy purchases. China’s luxury timepiece market is also growing rapidly, partially thanks to the rise in Chinese women’s incomes:

Apple Watch’s promise in China as a fashionable luxury item is already clear. When former supermodel Christy Turlington Burns appeared during Apple’s U.S. event Monday to explain how she’s using Apple Watch for fitness, critics called it an awkward, even irrelevant product placement — an iconic women’s advocate wearing a watch “skewed to geeky guys.” But when the Apple Watch graced the cover of Vogue China alongside China’s most famous model, Liu Wen, hardly anyone batted an eye. As Vogue China’s editor-in-chief described the difference, “We embrace new technology and digital products more easily than perhaps people elsewhere.”

Of course, Apple has spent years laying the groundwork in China for a potential hit with the Apple Watch. It sealed a “watershed” deal with state-owned China Mobile in 2013 to ensure China’s largest mobile network supported iPhones, an agreement that was in the making as far back as in 2007 when the first iPhone launched. Apple also recently brought its iPhone 6 and iPhone 6 Plus to China, which sport the larger screens Chinese users have long demanded. Apple shipped a record-breaking 74.5 million iPhones worldwide last quarter, and while Apple doesn’t breakdown shipments by country, UBS estimates that China now claims 36% of the iPhone market, surpassing the U.S. for the first time.

And Apple has already linked the Apple Watch to China. The company’s March 9 event kicked off with a video showing the opening of a new flagship Apple Store in China, where the retail locations are set to double by mid-2016. Later, Apple showed off the Apple Watch’s compatibility with WeChat, a wildly popular messaging app in China. It was a wise move, as Chinese users have expressed worry that Apple Watch’s screen is too small for the app.

So while Apple Watch’s relevance in the West may continue to be questioned, the wearable has a clear place in China. Given how lucrativeChina has been for Apple, whether or not China loves the Apple Watch could be precisely what makes or breaks the device initial reception.

About the Author
By Jack Linshi
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

kalshi
CryptoKalshi
Kalshi’s ‘chronically online’ war room figured out World Cup virality — and realized AI might be bringing back the monoculture
By Nick LichtenbergJuly 21, 2026
3 hours ago
fl
North AmericaElections
Trump-backed hopeful to succeed DeSantis unveils plan to protect local water, electricity from data centers
By Matt Brown and The Associated PressJuly 21, 2026
4 hours ago
Bolt CEO Ryan Breslow
CommentaryHuman resources
The CEO who fired HR was right. About the wrong thing.
By KeyAnna SchmiedlJuly 21, 2026
4 hours ago
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
Arts & EntertainmentDisney
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
By Joshua HongJuly 21, 2026
4 hours ago
Jersey Mike's Subs restaurant.
C-SuiteCFO Daily
Jersey Mike’s tests how far investors will stretch on restaurant IPO valuations
By Sheryl EstradaJuly 21, 2026
4 hours ago
all five founders of SkyPilot pose for a photo
Startups & VentureTerm Sheet
SkyPilot, from Databricks’ cofounder, raises $20M to be the Switzerland of AI compute
By Lily Mae LazarusJuly 21, 2026
4 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
22 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago
Current price of oil as of July 20, 2026
Personal Finance
Current price of oil as of July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.