Apple Watch could face tough competition from local brands that make cheaper versions of the U.S. tech veteran’s “most personal device.”
When tech giant Apple delivered its first batch of the long-awaited gadget to its customers on Friday, tens of thousand units of the device's look-alikes have already been sold worldwide.
According to smartwatch factory YQT Electronic Technology founder Zheng Yi, the Apple Watch release could trigger an "explosive demand growth" this year.
"Apple ignited customers' craze for wearable devices. We will definitely benefit from it," he shared.
YQT makes smartwatches akin to Apple's at first glance. Named "Smart Watch," the 300-yuan gadget can track one's steps, receive short messages and browse the Internet. It is nearly nine times cheaper that Apple's 2,588-yuan wearable gadget.
The 38-year-old urban planning graduate from Zhejiang University claims that his Smart Watch is a "completely different product."
"All we did was to borrow some of the outstanding features from Apple and add our own watch. We did not copy them," Zheng stressed out.
Compared with Apple Watch, YQT's has a longer battery life and can take low-quality photos. Also, the firm's engineer has crafted the device in a way that it can apply for an appearance patent in the country to avoid any legal implications.
Earlier, Apple complained about the product after knowing from the California-based giant Cupertino that the Chinese firm used the same setting icon in its Smart Watch. This moved YQT to immediately replace the icon.
However, industry experts say that the cheaper versions of the phenomenal Apple Watch could not defeat the product.
John Fang, a China Market Research Group business analyst, said that "the knockoffs only attract those who cannot afford the real ones. But I think the vast majority of consumers would still buy Apple products from a trustworthy channel."
"Apple commands a huge, loyal customer base who are already part of the brand's ecosystem and willing to embrace their latest offering," Jack Chuang, an associate partner at OC&C Strategy Consultants Greater China, remarked.
Zheng admitted that his company cannot take down world-renowned tech giants such as Apple and Samsung. However, he is still optimistic that in the long run, YQT can possibly have a faceoff against Apple.
"We've been making smartwatches for more than seven years. Apple is a latecomer. We have more experience in this field and it is a huge advantage," the YQT founder stated.
"To build a company like Apple, we need to build better brand awareness, and making knockoffs is not going to help," Zheng added.
YQT currently pulls in 85 million yuan of annual revenue.