Final answer:
The increased sales of the Apple Watch upon informing customers about its functions demonstrates the impact of innovation and consumer awareness. This scenario underlines how the revelation of a product's innovative features can significantly influence demand, providing a competitive advantage and the potential for increased profits for the firm.
Step-by-step explanation:
The increase in sales of the Apple Watch when customers were informed about the various functions of the watch reflects the significance of awareness and knowledge of a product's features as a characteristic of innovation. A product can be deemed innovative not only by its existence but by the consumers' realization of its value and functions. The Apple Watch's innovative nature comes to light when consumers understand how the features can meet their needs or enhance their lives, which then translates into increased sales.
As the CEO of Samsung, Gregory Lee, highlighted, innovation involves relentless pursuit and plays a crucial role in business by offering consumers the ability to discover new possibilities with technology. Such innovative practices can provide a firm with a temporary competitive advantage, leading to above-normal profits, especially before competitors catch up. In this case, educating customers on the Apple Watch's various functions increases its perceived usefulness and thus, drives sales.
Additionally, market competition often serves as an incentive for leaders in technology like Apple to constantly innovate, as this leads to more effective products, better consumer satisfaction, and potentially higher profits due to differentiated features that are valued by customers.