Morgan Stanley analyst Katy Huberty has predicted that Apple’s widely rumoured ‘iWatch’ could generate as much as $17.5 billion in revenue for the company during its first 12 months, CNET is reporting. Tim Cook hinted at a new product category during the company’s earnings call last month, which the analyst believes is most likely a smartwatch.
‘iWatch’ mockup
The analyst assumes that the ‘iWatch’ would sell for a price tag of $299 and a customer base would be similar to that of the iPad, which triggered sales of $12 billion during its initial year. At the same time, Katy notes that supply constraints for an iWatch could limit first-year revenue to anywhere from $12 billion to $14 billion, which would still mean a 6 to 10% point bump in Apple’s 2015 revenues.
And just who would buy the iWatch?
“Our working assumption is that iWatch largely will be adopted as an accessory device and, therefore, sold into the existing customer base, like the iPad, rather than to new customers, like the iPod or iPhone,” Huberty said in an an investors note released on Tuesday.
Do you think a price tag of $299 would be reasonable for an Apple branded smartwatch?
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
If we’re talking about reasonable, I think a “smartwatch” alone is not reasonable for Apple.
Considering the price of today’s smart watch, $150-$200, a price tag of $300 would be about right for Apple’s product.