• Analyst Expects First Full Year of Apple Watch Sales to be Modest



    Potential Apple Watch buyers are said to be in a holding pattern as they await more details from Apple regarding core use cases and a fully-detailed list of features based on a recent consumer survey which was conducted by Piper Jaffray. In a recent research note, analyst Gene Munster stated that he believes customers are taking what appears to be the “wait-and-see” approach to the Apple Watch with recent statistics suggesting that 7% of iPhone owners currently plan to buy the device. This number is down from the original 8% in September when the device was first unveiled.

    As of right now, Munster anticipates that consumer demand will increase once more detailed information about the new product category is revealed. This is likely going to happen months leading up to the release, which currently doesn’t have a set date. It should be noted that in terms of feature, Apple previously vaguely mentioned some of the device’s capabilities but shied away from targeting any one specific feature and mentioning third-party app capabilities.

    The Apple Watch is expected to hit store shelves in the second quarter of 2015 which would place it pretty much towards the end of Apple’s vague “early 2015” launch window. Munster iterated Apple Watch sales estimates of 10 million units over its first full year of availability. He wrote the following regarding the matter:

    We continue to believe the Watch can be an important product for Apple, but expect first year sales to be modest.
    Although final pricing and manufacturing costs haven’t been revealed, Munster expects gross margins for the device to be in the range of 30% to 60% based on make and model. The sports models are expected to bring in 30% to 40% margins while the luxury versions are expected to be in closer to 60%. If Munster’s sales predictions of 10 million units average a sales price of at least $500, Apple could be looking to add roughly 2% to its annual revenue.
    Piper Jaffray continues to maintain an “overweight” rating for AAPL stock with a $135 price target.

    What category do you fall under? Are you looking to purchase an Apple Watch as soon as it is released or are you a bit skeptical for now and want to learn more about the device first?

    Source: Piper Jaffray via AppleInsider
    This article was originally published in forum thread: Analyst Expects First Full Year of Apple Watch Sales to be Modest started by Akshay Masand View original post
    Comments 6 Comments
    1. rodnutz's Avatar
      rodnutz -
      Until it's waterproof and can last 3+ days on a single charge with minimal use they won't get my money!
    1. bigboyz's Avatar
      bigboyz -
      This AppleWatch is arriving late to the party. It is going to have to WOW us. So far I am not wowed at all. Its an overpriced heartbeat monitor at best. Waterproof, 3-7 days on a single charge and ability to operate as a standalone device would be great.
    1. Fenderbender's Avatar
      Fenderbender -
      When the first iPad was announced, one of my first reactions was "No USB port? No way." and now I feel a bit silly for being critical for what the iPad was not, and not what it turned out to be when I really didn't know much about it or its capabilities at first.

      Remember all the "It's just a giant iPhone that can't make phone calls" naysayers? Not me. Not this time.
    1. AKCHRIS's Avatar
      AKCHRIS -
      It's pretty much a MUST if you don't have an iPhone6 since if you want to use Apple Pay you'd Need this. It's just a point fact given. I myself won't be getting it...because with those of us carrying health devices such as Fitbits or Jawbone's will look kinda silly with 2 devices on your wrist, not to mention if this DOES the same thing AS those before mentioned devices it would be just a Waste of Money for those whom bought them.
    1. unison999's Avatar
      unison999 -
      I am not taking off my Tag Heuer watch for a fancy Casio I mean Apple calculator watch I mean iWatch...

      For those who do not understand sarcasm... I know it is more than a calculator watch, but this is not something you pass on generations after generations like the Rolex, Cartier, etc brands.
    1. peacedog's Avatar
      peacedog -
      Quote Originally Posted by unison999 View Post
      I am not taking off my Tag Heuer watch
      I'm not taking off my $40 Timex Ironman either for an Apple Watch.
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