Apple Could Sell Up to 10 Million iWatches in the First Year

Apple Could Sell Up to 10 Million iWatches in the First Year

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Piper Jaffray analyst Gene Munster says Apple could sell up to 10 million iWatches in the first year, reports Fortune. His team asked 799 U.S. customers whether they would spend $350 on a watch that connected to the iPhone. 88% said no and 12% said yes. Munster realized that not everyone who was interested in the device would actually purchase one, so he conservatively estimated that 2-4% of iPhone owners would buy the device in the first year.

"If you assume that Apple sells 7.5 million units in the first year (midpoint of our 5-10 million unit range) at an ASP of $350 and a 30% gross margin, it would increase our 2014 revenue estimates by $2.6 billion or 1% and gross profit dollars by $790 million or 1%.

Morgan Stanley's Katy Huberty made a similar estimate last year but came up with a number 10x higher. She took 500 million iTunes account and estimated a 20% to 60% penetration rate for devices priced between $100 and $300 . This resulted in a sales estimate of 50 to 150 iWatches per year and $10 to $15 in additional revenue.

Huberty's calculations can be seen in the chart below...

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Apple Could Sell Up to 10 Million iWatches in the First Year

Apple Could Sell Up to 10 Million iWatches in the First Year
Sad 2 - October 7, 2013 at 8:47pm
It's sad to see this board change. Some comments are always so rude and offensive regardless pro-Apple or pro-Android. Or iSheep this iShit that.... No product is prefect. Not Apple. Not Google. Not even Samsung. But they do have their pros and cons. Competition is good and benefit to the customers. While users might their own preference of the product, it doesn't necessary to trash others. This board, especially the comments, is more like a 8 years old trying to argue. It's sad.
Joe - October 7, 2013 at 9:06pm
I Agree, mostly a teenager board.
BA - October 7, 2013 at 9:14pm
I used iPhone and not one problem ever had with it, but the only con for it to satisy people most is size but to me it's good enough for one hand use and any taller would make it ugly! To me android is just a con to me!
ARRRGH!!!! - October 7, 2013 at 7:43pm
Jimmy Nutrin = .Steve God. Man, will this guy ever find another hobby?!? Or at least take some grammar classes?!? Or (gasp!) finally find the right meds for whatever his mental disfunction is?!?
ARRRGH!!!!=tony - October 7, 2013 at 7:53pm
Will you ever find a life or at least take technology and attitude school or else I will find the right doctor or treatment from the type of dissabillity he is suffering from ever since he showed his sorry ass here, I am a normal commenter who doesn't aim at people like Steve gayod does! I only reply to antrolls who call us sheeps because they are on an apple site, but in what way does your empty mind over nothing tell you I am SG? Do I have dots, avatar, same email like he did?
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