UBS sees Apple selling 21 million $300 ‘iWatch’ units in first year

“If Apple does launch a so-called ‘iWatch’ later this year, investment firm UBS believes the ramp up in sales could be similar to the company’s wildly successful iPad, hitting 21 million units in fiscal 2015 and 36 million units the following year,” Neil Hughes reports for AppleInsider.

“With a projected average selling price of $300, the iWatch could add one to two points of earnings per share growth, analyst Steven Milunovich said in a note to investors on Monday, a copy of which was provided to AppleInsider,” Hughes reports. “At that price, Milunovich believes Apple could achieve product margins at launch around 25 percent, increasing to the low 30s over several quarters.”

“Milunovich’s estimates would add $6.5 billion in revenue to Apple’s projected fiscal 2015, and about $11 billion in revenue to the company’s fiscal 2016,” Hughes reports. “He also sees the ‘iWatch’ being 30 to 40 basis points dilutive to Apple’s overall margins.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Dan K.” and “Sarah” for the heads up.]

17 Comments

  1. i have no interest in wearing a watch, especially since my ipoad touch tells me everything i need to know. this watch has to be pretty spectacular for me to buy one. It needs to do something special that the iPod touch doesn’t do

    1. Again, not your thing? Fine. Move on.

      But I predict something much different. I’ll buy one for my diabetic wife on release, most likely. Many will. Will it be a mainstream device, like the iPhone? I seriously doubt it. But it will still do well, imo.

  2. This weeks rumor, it’s a watch band upon which you can attach your iPod I phone. Saves stuffing them into a bra. Considering the number of women that stuff their phone into bras the iBra is a great idea.
    Warning though all those vibrations may induct lactation.

  3. Apple will sell between none and some of a new product which they haven’t thought about yet, you didn’t know you needed, and whose use case is decided by a bunch of basement dwellers.

  4. So this guy doesn’t exactly know what it would do and he doesn’t know how much it would cost to make, yet somehow he is able to project sales, pricing, and profit margin. He’s amazing!

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