Is Apple Missing On A Big Opportunity By Not Setting Apple Watch Free From iPhone?

Mark Gurman, a well-known Apple Inc AAPL watcher, wants the tech giant to bring more “independence” to its Apple Watch wearable.

What Happened: “Apple should add a setup system to the watch so that a user can log in directly to their iCloud and iTunes accounts, download data from the cloud, and activate the device with their cellular carrier,” Gurman wrote in his latest newsletter.

Setting the Watch free from the iPhone would give it a more prominent position in Apple’s product universe and also attract users of rival the Android mobile operating system by Google, a subsidiary of Alphabet Inc GOOGL GOOG.

“Making the watch completely independent could turn the device into an even bigger part of the company’s product portfolio, increase sales and help reach customers outside of the Apple ecosystem—including Android users,” as per Gurman.
Why It Matters: Gurman noted that the latest iterations of the device, the Apple Watch Series 7, feature a built-in-qwerty keyboard and have the “potential for more expansive controls.”

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Apple is currently accepting pre-orders for Series 7, which as per the company website, would be available on Oct. 15.

The Watch Series 7 features a bigger screen, a faster chip, and a brighter display.

Previously, the Tim Cook-led company has already added LTE  support, the App Store, and a kids-oriented feature called Family Setup that allows the watch to operate without the phone in specific instances — but despite these “enhancements” the watch is still unable to be used without the iPhone.

“That limits the potential user base of the Apple Watch—and excludes people who might want to only own an Apple Watch and a Mac or iPad and no iPhone. Or, one day, people who want an Apple Watch as their only device.”

The journalist noted that Apple co-founder Steve Jobs’ last major initiative was the iCloud and since the release of that platform other Apple devices can be set up, activated, and synchronized without a Mac computer, which was not the case in the pre-iCloud era.

“The Apple Watch doesn’t meet the Jobs vision for every Apple device being able to operate and exist on its own,” said Gurman.

Price Action: On Friday, Apple shares closed nearly 0.3% lower at $142.90 in the regular session.

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