“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.]