“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.]