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

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Posted October 7, 2013 at 5:42pm by Shalom Levytam

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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skylander - 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.

gamerscul9870 - 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!

gamerscul9870 - October 7, 2013 at 6:03pm

Any product has been good before. If anything is similar, it is the Samsung Galaxy S4 which is quite like the Note 3. Technically saying maybe the iWatch will be newer than iPod nano 6 because it is a music player. You cannot predict anything that is plastic yet or imaginary. There are concepts going around using metal.