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

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Posted October 7, 2013 at 5:42pm by iClarified

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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ARRRGH!!! - October 7, 2013 at 9:24pm

Nope, what gives you away is the way you never make sense, in exactly the same way. People would stop making fun of you if you just took a minute to read what you write before clicking "submit", and realise that for anyone that is not inside your head, it makes absolutely no sense. Capish? I look forward to your incoherent and hysterical reply. Unless you prove that you have an iota of control, and leave it at that. XO

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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 the same thing first off, it's samshits galacrap 4 which is exactly the same as the note 3! Technically saying maybe the iWatch will be newer than iPod nano 6 because it's a music player! You can't predict anything that's that's plastic yet or imaginary? What imaginary, there are concepts going around and as before used, metal, wow you are so right mister know it all!

Justin Bieber - October 8, 2013 at 4:16am

Actually, I find his avatar dreamy!!!! Hmmm... <3 <3 <3

gamerscul9870 - October 8, 2013 at 2:19pm

You find something that hits your youth face as always, glad to see you are about to move out of u.s.a.!