Apple Acknowledges Cellular Connectivity Problem in New Watch
20 Septembre 2017 - 8:50PM
Dow Jones News
By Tripp Mickle
Apple Inc. acknowledged problems with cellular connectivity in
its newest smartwatch, raising questions about the device's most
significant feature days before it goes on sale in stores in the
U.S. and other countries.
In a statement Wednesday, Apple said the problem connecting to
cellular networks occurs when the Apple Watch Series 3 -- the first
watch from Apple to feature an LTE chip for cellular service --
joins "unauthenticated Wi-Fi wireless networks without
connectivity." Apple said it is "investigating a fix for a future
software release."
Apple issued the statement after reviewers from The Wall Street
Journal and the Verge encountered problems at times making calls,
connecting with the Siri virtual assistant and maintaining a
cellular-network connection. The Journal ran into issues across
multiple wireless carriers.
Reviews from the New York Times, USA Today and other outlets
didn't report significant issues with calls and connectivity. A
spokeswoman for T-Mobile US Inc. said it tested the watch
extensively and it "performed well" on the company's network.
AT&T Inc. referred questions about the issues to Apple.
Apple's stock was down 1.8% in afternoon trading in New
York.
Wall Street views the Apple Watch, the first completely new
product released under Chief Executive Tim Cook, as a bellwether
for the company's ability to create new devices that diversify
Apple's revenue, two-thirds of which come from iPhone sales.
Apple hasn't disclosed smartwatch sales to date. Market
researcher IDC estimates it sold an estimated 30 million Apple
Watches since introducing the device in 2015, making it the world's
largest smartwatch company by sales. But the device has failed to
generate the type of sales growth Apple saw in the early days of
other products such as the iPhone and iPad.
The new Apple Watch with LTE goes on sale in stores Friday for
$399, and been available for preorder online since Sept. 15. The
promise it can operate independently of an iPhone or Wi-Fi has
raised sales expectations.
Loup Ventures, a venture-capital firm specializing in tech
research, expects the Series 3 model to lift Apple Watch sales
nearly 60% to 26 million units in fiscal 2018, up from 16.4 million
units this fiscal year. As of Wednesday, delivery for most models
of the new watch was expected to take three to five weeks.
Analysts expect Apple Watch Series 3 to get a sales push from
wireless carriers motivated to sell the watch with a supporting $10
monthly data plan. They also believe its new capabilities could
attract consumers who passed on the product following its 2015
debut because of its seeming lack of purpose.
When Apple introduced the Series 3 model at its product showcase
Sept. 12, Apple Operating Chief Jeff Williams said it would give
people "the freedom to go anywhere with just your Apple Watch."
He said it would stream 40 million songs to his wrist and have
the same phone number as the owner's phone. He demonstrated its
abilities by dialing a colleague who received the call on her Apple
Watch while paddleboarding on Lake Tahoe.
What is holding the watch back from mass-market appeal is that
it is still too focused on health and fitness, said Jitesh Ubrani,
a smartwatch analyst with IDC. Apple needs developers to make
different kinds of apps so the watch can become a "need to have"
device. Cellular capability "gives them a chance," he said.
Mr. Williams, who oversees the smartwatch, has been pushing for
cellular connectivity since before the device's launch, according
to a person familiar with the product's evolution. However, Apple
struggled with poor cellular reception, the person said.
Hardware experts have said the challenges reflect the
difficulties of working with such a small device. Apple crams
accelerometers, gyroscopes, heart-rate sensors and 18 hours of
battery life, as well as GPS, Bluetooth and Wi-Fi connectivity,
into a product that is just 38 millimeters or 42 millimeters in
size.
Apple isn't the first company to offer cellular connectivity on
a smartwatch. Samsung Electronics Co. currently offers it on the
Gear S3 watch, a device that is thicker and noticeably heavier than
the Apple Watch.
--Drew FitzGerald contributed to this article
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
September 20, 2017 14:35 ET (18:35 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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