Morgan Stanley Predicts 10% of iPhone Owners Will Buy Apple Watch Next Year

Morgan Stanley Predicts 10% of iPhone Owners Will Buy Apple Watch Next Year

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Morgan Stanley is predicting the sale of 30 million Apple Watches next year based on a 10% penetration of the compatible iPhone user base.

Notably, the company says that their unit estimate is at the high end of consensus but they feel it's arguably still conservative.

"Street estimates run the gamut, with most ranging between 10M and 30M units in the first year. We believe looking at penetration into the Apple installed base yields the most realistic assessment of demand potential of the Watch. Our 30M unit estimate implies 10% penetration into Apple's 315M iPhone 5 or newer installed base exiting 2014, which is lower than iPad penetration of 14% in its first year but higher than iPhone at 7%. However, the iPhone was constrained by limited carrier distribution and a more expensive two-year service contract In addition, our AlphaWise survey indicates initial purchase intentions in the US are higher than they were for the iPhone and iPad pre-launch."

Morgan Stanley has also raised their price target on AAPL to $126 from $115, raised their bull case to $150 from $135 and their bear case to $92 from $77.

Check out the charts below for more details. Are you planning to purchase the Apple Watch? Let us know in the comments!


Morgan Stanley Predicts 10% of iPhone Owners Will Buy Apple Watch Next Year

Morgan Stanley Predicts 10% of iPhone Owners Will Buy Apple Watch Next Year
Galford - November 21, 2014 at 11:28am
 percent will leave iPhone because of charge issues of iPhone, I have iPhone 5 and my battery ends in the middle of the day, considering a new phone has better battery life and high price performance ratio, I think I am gonna buy note4, I may miss iOS but have meaning since I can only use it half of the day
Troll's cock - November 21, 2014 at 1:50pm
My iPhone lasts up to 2 days. Why note 4 over 6? It's super efficient and hugely increased battery.
Vic - November 22, 2014 at 5:37pm
My iPhone 6 plus can last an entire day from 7AM to 2AM the next day with heavy use. It's amazing. Your just an android fan that's all.
Vic - November 21, 2014 at 1:29am
Got the 6Plus and I'll be getting this
Hiya - November 20, 2014 at 7:37pm
Latest news on all apple products, how to guides, latest news and jailbreak step by step guide. All in one place. Please visit www.iphoneclinic.net
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