“While Tim Cook has dropped hints that Apple Inc. (AAPL) is hard at work on a television to drive the next era of growth, the company’s wristwatch-style device, still in development, may prove more profitable,” Peter Burrows and Olga Kharif report for Bloomberg.
“The global watch industry will generate more than $60 billion in sales in 2013, said Citigroup Inc. analyst Oliver Chen. While that’s smaller than the pool of revenue that comes from TVs, gross margins on watches are about 60 percent, he said,” Burrows and Kharif report. “That’s four times bigger than for televisions, according to Anand Srinivasan, a Bloomberg Industries analyst.”
Burrows and Kharif report, “The TV industry will generate $119 billion in sales this year, according to market-research firm IHS Electronics & Media. Using Chen’s margin estimates, a 10 percent share for Apple in each market would mean gross profit of $3.6 billion for watches, outstripping $1.79 billion for TVs.”
Read more in the full article here.
MacDailyNews Take: As with everything else, Apple wouldn’t make a run-of-the-mill TV set. Presumably, there would be something(s) special about it that would case people to line up around the block for it.
The prevalence and rapidity of Apple Amnesia is disturbing.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
I would buy an iWatch the minute Apple released one.
On the other hand, the Apple TV set would be a big mistake. No one in their right mind would buy one.
No one in their right mind would dismiss a product that doesn’t even exist especially if that person has no clue as to what such a possible product may or may not be capable of.
Thats funny BLN, you keep kvetching for a 6.9″ iPhone, didn’t figure you go for a 2.5-3″ watch………..
Apparently no one has put the pieces of this puzzle together.
This Spring Apple will release the “iWatchStockTVsPlit”
I can only add that my source is in the dry-cleaning trade.
I have already said too much…
What, you asked the A Team?
a watch, a tv…how exciting.
It’s amazing that so many continue to think in terms of hardware being the basis for Apple’s next gen product, when TC and PO both stated [rather bluntly] that Apple is a software company, and should be thought in that manner.
Apple has gone so far as to change its Income Statement format to emphasize software over hardware. Any AppleTV product is going to be a software enhancement of the current AppleTV set top box.
I have no idea how Apple intends to do that, but the margins will be in the 60% – 80% range and not require a hardware rollout, except to place older sets that won’t be able to run the new software, and sales to new customers.
Let me do my best wallstreet impression;
“la la la la, I can’t hear you…… As long as I can’t hear you I can still bash and manipulate AAPL based on the perception of its hardware la la la”
I thinks so. More a wider demographic can afford to buy a smart watch than a TV. And if Apple releases yearly designs, people could buy one every year. Collect them. The TV is a long term investment in a cutthroat market.
Is it just me, or could I care less for a watch. Maybe I am not getting it. I think apple has made good on its hardware for a bit, focus on getting the software kicking ass again.
Apple Fanboy Identity Bracelet.
since everyone is pulling vaporware ideas out of their derrieres, how about this:
-a more capable Mac Pro with more graphics card options and Thunderbolt.
– a mid-size tower with room for 4 hot-swappable 2.5″ solid state drives
– a competitive display
– an iMac with 2 user-accessible drive bays and upgradeable graphics
– iWork 2013
– a restoration of iTunes features that were #$%^& up in version 11
– Maps that work
…
And an updated Logic Pro
An OS X update with meaningful features
Multi tasking in iOS
Widget behavior in iOS.
The Manipulator: Apple gives up on profits for iTV, iWatch is vaporware says Microsoft, experts in the field. Apple stock expected to drop.
iWatchTV. And, it makes me sleepy.
This one fictitious, vaporous product could theoretically make Apple more money that this other fictitious, vaporous product.
Solid analysis, Bloomberg.