Apple Plans to Release a Cellular-Capable Watch to Break iPhone Ties
Apple Plans to Release a Cellular-Capable Watch to Break
iPhone Ties
By Mark Gurman , Scott Moritz, and Ian King August 4,
2017, 1:23 PM PDT August 4, 2017, 2:36 PM PDT
Apple Inc. is planning to release a version of its
smartwatch later this year that can connect directly to cellular networks, a
move designed to reduce the device’s reliance on the iPhone, people familiar
with the matter said.
Currently, Apple requires its smartwatch to be connected
wirelessly to an iPhone to stream music, download directions in maps, and send
messages while on the go. Equipped with LTE chips, at least some new Apple
Watch models, planned for release by the end of the year, will be able to
conduct many tasks without an iPhone in range, the people said. For example, a
user would be able to download new songs and use apps and leave their
smartphone at home.
Intel Corp. will supply the LTE modems for the new Watch,
according to another person familiar with the situation. That’s a big win for
the chipmaker, which has been trying for years to get its components into more
Apple mobile devices. Qualcomm Inc. has been the main modem supplier for
iPhones and other Apple mobile gadgets, but the two companies are embroiled in
a bitter legal dispute. Apple added Intel as a modem supplier for some iPhones
last year.
Apple is already in talks with carriers in the U.S. and
Europe about offering the cellular version, the people added. The carriers
supporting the LTE Apple Watch, at least at launch, may be a limited subset of
those that carry the iPhone, one of the people said. However, AT&T Inc.,
Verizon Communications Inc., Sprint Corp. and T-Mobile US Inc. in the U.S. plan
to sell the device, according to other people familiar with the matter. The new
device could still be delayed beyond 2017 -- indeed, the company had already
postponed a cellular-capable smartwatch last year. Apple, Intel and the
carriers declined to comment.
While the Apple Watch remains a small part of Apple’s
overall revenue, Chief Executive Officer Tim Cook said earlier this week it’s
the best-selling smartwatch "by a very wide margin." Sales of the
device grew more than 50 percent in the third quarter, Cook added. In the
larger wearables category, which includes cheaper fitness bands, Apple ranks
third behind Xiaomi Corp. and Fitbit Inc., according to research firm Strategy
Analytics. Apple does not break out sales numbers for the Watch like it does
for iPhones, iPads, and Macs.
Making the Apple Watch more of a standalone device may
boost sales of the product. "It would be a game changer," said Gene
Munster, co-founder of Loup Ventures and a long-time Apple analyst. "If
they could deliver an experience that isn’t tethered to an iPhone, it could
kick start a new direction for the business." Still, he’s concerned about
battery life in such a device.
Last year, Apple took a step toward making the Apple
Watch a more independent device by selling some new models with a GPS chip.
This allows the device to accurately track distance traveled by wearers when
they leave their iPhones behind on walks or runs. The company had planned to
release an LTE-capable model last year, but chose to hold off due to battery
life issues, Bloomberg News reported at the time. Cramming an LTE radio into a
device as small as a watch remains a challenge, but Apple has been exploring
ways to improve battery life, people familiar with the company’s work said.
In addition to adding a cellular chip to the Apple Watch,
the Cupertino, California-based company is planning software changes for the
device. WatchOS 4 is coming in the fall with more Siri voice-enabled features,
the ability to connect to gym equipment, send payments in iMessage and display
news stories, Apple said in June at its Worldwide Developers Conference.
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