Apple Sets New Watch With Debut On April 24

Apple executives presented their case on why the Apple Watch is a must-own vs. nice-to-have product before the court of public opinion Monday. But the jury is still out on whether the smartwatch, with models ranging from $349 to more than $10,000, will be a big seller.

Apple (AAPL) CEO Tim Cook described the wearable device as a customizable timepiece, a revolutionary way to connect with others, and a groundbreaking health and fitness companion. It also can be used with Apple Pay to make retail purchases with the wave of a wrist.

"Apple Watch is the most personal device we have ever created," he said. "It's not just with you, it's on you.

Major Test Of Innovation

Shares rose a fraction ahead of the company's promotional event in San Francisco and stayed in the green as Apple announced a lower-priced Apple TV set-top box, exclusive availability of the new HBO Now streaming service, and a completely redesigned MacBook notebook computer.

But the stock fell when executives started discussing the Apple Watch some 53 minutes into the presentation. It rebounded and closed up 0.4% to 127.14.

The Apple Watch is the first new product category developed since the death of co-founder and CEO Steve Jobs in October 2011. It is seen as a major test of whether Apple can continue to innovate and come out with compelling products without the visionary leader.

Apple executives detailed communications, health and other apps for the watch. With the built-in microphone and speaker, you can take phone calls on your wrist. You also can ask questions into it using the Siri personal assistant software. Third-party apps include MLB.com At Bat, Nike+ Running, OpenTable, Shazam, Twitter (TWTR) and Uber.

The Apple Watch works in tandem with iPhone 5 and 6 series smartphones. Cook said it will have "all-day battery life," or around 18 hours of use. It is meant to be charged nightly with a magnetic connector that latches to the back.

Adoption Curve In Question

Consumers might want to wait until the product reviewers chime in before they believe Apple's battery-life claims, S&P Capital IQ analyst Angelo Zino told IBD. "If it's more along the lines of 10 to 12 hours in heavy usage, that could be a big problem for consumers," he said.

Zino thinks Apple should be able to sell 10 million to 15 million units this calendar year. The Apple Watch looks like a "pretty good product ... but it won't be a blockbuster right out of the gates." Still, Apple has the brand cachet to become a leader quickly in the wearables business.

The consumer adoption curve for the Apple Watch remains a major "hot button" question among tech investors, said FBR Capital Markets analyst Daniel Ives. Wall Street currently anticipates Apple selling about 14 million units in 2015, he said in a note Monday.

The much-anticipated smartwatch, first announced on Sept. 9, will go on sale April 24, with preorders starting April 10. It will come in models ranging in price from $349 for the sport version to more than $10,000 for the gold luxury version.

The Apple Watch will launch in nine markets: Australia, Canada, China, France, Germany, Hong Kong, Japan, the U.K. and the U.S. It will be available in three collections and two screen sizes (1.5 and 1.65 inches).

The entry-level Sport model has an aluminum case and is priced at $349 for the smaller version and $399 for the larger one. The midrange Apple Watch has a stainless steel case and is priced at $549 to $1,099. The high-end Edition model, crafted from custom rose or yellow 18-karat gold alloys, is priced starting at $10,000.

Extra bands range from $49 for colored rubber sports bands to $449 for a stainless steel link bracelet. Other leather and metal bands cost $149 and $249.

The smartwatch will be available to preview and to try on by appointment at Apple's retail stores starting April 10. Two weeks later, customers can buy the watch online or by reservation in Apple stores and select retailers.

In addition to unveiling the Apple Watch, the company cut the price of its Apple TV set-top box to $69 from $99 and said Time Warner's (TWX) HBO Now streaming service will launch exclusively on Apple TV next month. HBO Now will cost $14.99 a month, with the first month free.

"We're adding more and more (content) each day," Cook said. "Apple TV will reinvent television, and this is just the beginning.

The company has sold 25 million Apple TV units to date. In addition to HBO Now, Apple TV also has Netflix (NFLX), Hulu Plus and other leading content distributors.

HBO CEO Richard Plepler said that the new streaming service will be ready before the season-five premiere of "Game of Thrones" on April 12. But he didn't say how long Apple TV would have an exclusive on HBO Now, which will be available to people without cable or satellite TV subscriptions.

"This is a transformative moment for HBO," Plepler said.

Apple also unveiled a redesigned MacBook notebook computer that is its thinnest and lightest yet. The PC weighs just 2 pounds and is 13.1 millimeters thin.

It features a 12-inch Retina display and a reinvented keyboard and trackpad. The notebook starts at $1,299.