Morgan Stanley: Apple iWatch, iTV could generate additional $80 billion annually

“Employing her firm’s ‘What’s in the Price’ analyzer, analyst Katy Huberty advised clients that the market is currently pricing -4% long-term earnings per share (EPS) growth in the stock despite the company achieving 14% revenue growth in the markets it serves,” Katie Marsal reports for AppleInsider.

“Huberty’s analysis of the market potential for the recently rumored Apple iWatch product — which she admits no direct knowledge of — found that it could drive an incremental $10 to $15 billion in revenue, or $2.50 to $4.00 in EPS, each year,” Marsal reports. “Meanwhile, it’s estimated Apple could tack on another $17 billion in annual revenue, or $4.50 in EPS, from a U.S.-based rollout of a smart TV project.”

Marsal reports, “The estimates, based on an average selling price of $1,300 for the TV and 10% penetration of iTunes account holders, swell to $68 billion and $18.00 in EPS for a full-blown global roll-out.”

Much more in the full article here.

Related articles:
With ‘iWatch,’ Apple could turn wearable devices into next big thing – February 12, 2013
Why Apple is working on ‘iWatch,’ not ‘iGlasses’ – February 11, 2013
WSJ: Apple testing ‘iWatch’ device – February 11, 2013
iWatch: Apple developing curved-glass smart watch, sources say – February 11, 2013
Tog: The iWatch will fill a gaping hole in the Apple ecosystem – February 7, 2013
Why Apple should hang-up on the iPhone, iWear is next – January 6, 2013
Analyst sees wearable computers from Apple as future replacement for iPhone – January 2, 2013
Apple and Intel secretly building Bluetooth smartwatch that connects to your iOS devices, say sources – December 27, 2012
Apple patent application details display-integrated cellular antennas – May 6, 2012
Apple patent app details next-gen microstrip cellular antenna for future MacBooks, iWatch and beyond – October 25, 2011

8 Comments

  1. “I don’t know what people are doing with their other tablets” says Tim Cook about non iPad competitors who don’t buy products or browse the web at the rate of iPad users who actually use the product daily.

    I know what other tablet consumers are buying when they shop online. They cannot afford an iPad or even a PC, so when they shop online it is for discount, used and low margin goods. They are also look for FREE. Free, used, BOGO, CHEAP, DISCOUNT shoppers love ANDROID’s late to market inferior software, fragmented ecosystem, degraded UI and poor upgrade migration path. For some reason this is too difficult to articulate to GS and the investor class. They are so easily fooled by features like a big screen or something that they do not understand the holistic service/sales/software ecosystem and hardware/software integration provide a superior user experience, making the iPhone the #1 selling handset with the highest profit margins in the USA.

    #1) There is a real market balkanization going on here and you can reach the best market demographics as an advertiser by avoiding Android platform and sticking with iOS.

    #2) If you are an accessory maker like NIKE, you can avoid making your snappy new NIKE FUEL BAND watch for Android because that market is just not worth it as a brand association for NIKE because of android’s quality issues and cheap users.

    #3) Musicians and App Developers – We have both in my household and we’re making money on iOS and losing money on android apps, making good money on iTunes and barely measurable on Google play / Amazon MP3.

  2. Having seen how analysts work, we can see how this will pan out.

    Option 1 ) Apple releases iWatch. It earns an extra $9 billion, but the analysts had expectations of £10-15 billion, so the product is branded a failure. AAPL falls sharply.

    Option 2 ) Apple doesn’t release an iWatch. Apple is criticised for failing to deliver what the analysts rumoured that they might deliver. AAPL falls sharply.

  3. Yeah, and they could buy the International Space Station and rent it out but I’m not holding my breath.

    Apple is getting it’s future eaten up unless they pull some rabbits out if their hat soon.

Leave a Reply to Chuck Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.