14 DAY TRIAL // On October 14, 2013, Apple announced that Angela Ahrendts, CEO of Burberry, was to join the executive ranks in Cupertino in a newly created position, as a senior vice president and member of the Apple executive team, reporting directly to CEO Tim Cook.
Coming from British luxury fashion house Burberry, “Ahrendts will have oversight of the strategic direction, expansion and operation of both Apple retail and online stores, which have redefined the shopping experience for hundreds of millions of customers around the world,” the Mac maker said.
The announcement raised quite a few eyebrows, though Apple was known to be scouting experienced retail chiefs, and Ahrendts undoubtedly fits the bill. In fact, hiring the CEO of the 77th most valuable brand in the world sounds like a bit of overkill. And what does Apple want with a fashion expert anyway?
Well, if the latest research from KGI Securities is any indication, Ahrendts is exactly what Apple needs to spark a new revolution.
Analyst Ming Chi-Kuo, who works for the investment bank in question, released a white paper with an outlook on Apple’s 2014 roadmap and all the major new products that will descend upon us this year. Among the cited goodies Kuo mentions the elusive iWatch, a wearable computer that Apple plans to position as a fashion product as much as a handy gadget.
The speculation makes sense if another one of Kuo’s predictions proves to be accurate. He says the thing will run in the “thousands of US dollars.” Particularly the higher-end model, as there will be two versions of the smart-watch, apparently. Kuo’s take is attached below, with a few emphasis points on my behalf.
“Fashion is the name of the game; most expensive [iWatch] model likely priced at several thousand US dollars. Referring to the rules of the fashion market, we predict the iWatch casing and band will come in various materials. The most expensive model of the iWatch line will carry a price tag of several thousand US dollars. Assuming the iWatch proves to be a success, we expect Apple’s key competitors in 5-10 years will be the current fashion brands, not the existing tech companies.”
With the risk of sounding a bit redundant, you’ll notice that Kuo is hitting the word “fashion” pretty strongly in this one paragraph excerpted from the lengthy investor note. If it all turns out as he says it will, Apple’s decision to recruit Ahrendts will have been one of the best long-term investments ever made by the company.
Ahrendts is said to begin work at Apple as early as this month. With the iWatch planned to launch in fall (if Kuo’s projection pans out), the new retail boss will have enough time to get in sync with the Cupertino technology giant.
Ahrendts’ response to the hiring announcement from last year:
“I am profoundly honored to join Apple in this newly created position next year, and very much look forward to working with the global teams to further enrich the consumer experience on and offline. I have always admired the innovation and impact Apple products and services have on people’s lives and hope in some small way I can help contribute to the company’s continued success and leadership in changing the world.”
A business woman at heart, Mrs. Ahrendts indeed makes an effort to leave her mark on humanity, not just to generate financial income. Her TED talk on “Human Energy” is just one such example.