The Apple Watch is receiving mixed reviews from most outlets, stating that while the design is excellent, the performance, software, battery life and price are all not working.

It's not uncommon to see the first iteration of an Apple device fail to attract everyone's attention. The first iPhone was a bit of a bummer without the iOS App Store; the first iPad was a large bezeled chunky tablet and going back even further the original Apple I was lackluster -- although nowadays it sells for over $500,000.

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Following this pattern, the Apple Watch II should be a pretty impressive device. Apple has a year to fix some of the performance issues currently surrounding the original. It can work on new battery technologies for longer runtime and app developers will undoubtedly start porting over apps onto the new operating system.

All that said, Apple still has one problem: price. The Watch Sport looks like the most popular with dates already being pushed back to June, whereas the Watch is mostly in limited stock with a 4-6 week wait time.

Apple needs to make it so customers don't feel like the Watch is an over commitment, closing the gap between the Sport and the original. Perhaps in the next generation we'll see the two models mix together, allowing Apple to sell the device from $349 to $549 but have the straps be the differentiator, not the design of the watch.

Whatever Apple might be planning, it needs to ensure customers are willing to spend an extra $200. Offering the Watch Sport means only people with an intense desire for stainless steel actually need the Watch, or if you want a leather or metal band, which will set you back another $200 to around $700 - $900.

The smartwatch world is still young and full of vibrant manufacturers and startups. The Apple Watch may win the majority but if it can't keep customers interested in the next update, people might look towards the Moto 360, Pebble Time or any other number of watches on the market.

TAG Heuer, Swatch and other Swiss watchmakers are also getting in on the smartwatch market this year. Apple won't be alone in the high price, premium design watch market like it currently is with the Watch Edition.

TagsApple Watch, Apple Watch II, smartwatch