The Apple Watch will be available in early 2015 and analysts are has already betting on its revenue potential. The latest name to add to that list is Evercore analyst Rob Cihra, who according to his note sent to investors and shared with AppleInsider, expects the wearable to launch around March with an average selling price of $500.
The March launch means that Apple will have nine months to sell the Watch. At the estimated average price the latest Apple device will contribute 4% to the company’s calendar 2015 revenue, and will account for 36% of its growth when compared with last year.
“(Apple has a) proven ability to develop intuitive software UIs and design tech products that are fashionable as they are functional,” he wrote. “We think focusing on smartwatch specs misses this ‘fashion intangible,’ likely the most important factor in ultimate adoption, yet we see Apple as the one company that could make smartwatches cool.”
He also predicts Apple will sell 18.5 million smartwatches, but that’s just the start: in 2016 sales will be close to 23 million units, equating to a 5% attach rate for Apple’s iPhone installed base. And that’s a conservative approach, or, at least, so the analyst predicts.