iWatch Worth $17.5 Billion in First Year Sales For Apple, Morgan Stanley Says
Apple’s iWatch
isn’t even official yet, but Wall Street is already predicting what
sales of such a device could mean for Apple’s balance sheet if it does
launch sometime soon. A new analyst note from Morgan Stanley’s Katy
Huberty suggests that Apple stands to earn $17.5 billion in iWatch sales
from the first year it’s on the market. That’s incredibly bullish. To
put it in perspective, the iPad earned Apple $12 billion the first year it was on the market, Apple Insider said. Huberty thinks that existing iOS users will flock to the device, however.
Of course, the selling price of such a product is key in these
metrics, and Huberty suggests that Apple will sell the iWatch for about
$299 on average (different models could mean different price points).
That may be too expensive for some new entrants to the smartphone space,
and it’s on a par with what Samsung charges for the Galaxy Gear.
There are cheaper options Apple will fight against. The Pebble will set
you back $149 on the low end, while the new Pebble Steel costs $249.
Apple CEO Tim Cook said his company will enter new markets this year. A new connected Apple TV with a focus on apps and gaming may be one route, while the iWatch could be another. Huberty doesn’t suggest what kind of margins Apple will earn on the iWatch - rumors of wireless charging, flexible displays and even the use of sapphire could boost the cost of building the new wearable.
Source : APPLEINSIDER
Apple CEO Tim Cook said his company will enter new markets this year. A new connected Apple TV with a focus on apps and gaming may be one route, while the iWatch could be another. Huberty doesn’t suggest what kind of margins Apple will earn on the iWatch - rumors of wireless charging, flexible displays and even the use of sapphire could boost the cost of building the new wearable.
Source : APPLEINSIDER
