“LG Display will supply Apple AMOLED panels for the Apple Watch, with shipments expected to reach about five million a month in 2015, according to sources at LG Display,” Rebecca Kuo and Alex Wolfgram report for DigiTimes.
“Apple will receive about five million AMOLED panels for the device a month throughout 2015, with the Apple Watch expected to be released within the first quarter,” Kuo and Wolfgram report. “The sources said Apple aims to sell upwards of 50 million Apple Watches in 2015.”
Kuo and Wolfgram report, “Apple will reportedly not purchase AMOLED panels from Samsung Display and instead will have LG as the sole panel provider for the Apple Watch, the sources indicated.”
Read more in the full article here.
[Attribution: Cult of Mac. Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
“Gosh I dunno, seems optimistic, people aren’t just gonna plop their cash down for this, who wants to wear a watch again, this is headed for total failure, it’s not even better than Samsung’s crappy watch, I can confidently predict Apple will be eating their projections…”
BOOM!!!!!!
Ehhhh, I don’t know that I’d go as far as claiming it’ll be a total failure. This is a serious case of “Beta Tester Envy” and I’m just hoping, for one, the watch’s battery is up to the task. Yeah, Apple may be a bit optimistic on the 50 million wish. But ya’ never know…
I was playing the role of the doomsayers like in iPhone days of yore.
…uhhhh, never mind…
😉
The earth-shattering “BOOM!” was what happened when it turned out they were wrong, like they will be with the Watch. 🙂
That’s a bold claim, peak iPod sales were just over 50 million per year.
“The Watch is the best iPod we’ve ever made.”
–Tim Cook
Apple has sold 307.12 iPhones that are compatible with the Apple watch up to Q4 2014(cy). Apple is expected to sell 80 million iPhones (Watch compatible) in Q4 2014. Apple is expected to sell 235 million iPhones in 2015 (this is based on trendlines of past sales and growth). So Apple will finish 2015 with 622.12 million iPhones having been sold (entire history) that are compatible with the Apple Watch.
So that means 8.03% of owners of a compatible iPhone would need to buy an Apple Watch by the end of 2015.
Given the usual Apple margin, that would translate into a theoretical minimum of $5.24 Billion in profit (assuming 100% of sales are the cheapest model with no extra bands). That would rank the Apple Watch, if it were its own corporation as #115 in the world based on profit.
Going with a $50 increment model and the middle of the range represents the average selling price we end up with a profit of $7.1 Billion. That would rank it as #71 most profitable companies in the world if it were it’s own company… just above BMW.
And that doesn’t include additional bands, or boost to the ecosystem.
My initial prognosis was 40 million, though I am not sure that production values will allow such volume, let alone 50 million.
Well, gosh, that’ll set the analyst’s tongues to waggin’!
Napkin calculations:
750K @ $5000 +
2M @ $1000 +
47.25M @ $350 =
Around $22.25B revenue
40% GM (just a guess, this could be higher or lower) and 25% tax = $6.67B net @ 6B shares = $1.11 a share * 16 P/E = $17.76 a share increase, 17 P/E = $18.87 a share increase…
Apple to Samsung:
“No soup for you!”