“Nikkei reported that Apple has ordered an initial production of three to five million iWatch units per month,” NYC Trader writes for Seeking Alpha. “Using a baseline assumption that Apple will, on average, ship 4.5 million units per month, the iWatch maker could potentially ship ~55 million iWatch units during the first year (other analysts believe it could be closer to 60 million). Assuming a price tag of $350 per unit, that would translate to approximately $19 billion in additional revenue, or 10% of 2015 total sales!”
“Apple has carefully built the smartwatch concept with the Dream Team of luxury retail. Last year, Apple hired the impressive Paul Deneve, former head of high-end fashion brand Yves Saint Laurent, to work on special projects rumored to be the iWatch. Burberry’s ex-Chief Executive Angela Ahrendts joined in May. Last month, Apple hired Tag Heuer’s Vice President of Sales, Patrick Pruniaux,” NYC Trader writes. “This all spells disruptive premium offering. If Apple can successfully set an iWatch trend and convince the mid-range to high-end consumer to dump their ordinary Seiko quartz [or any watch in the $100 to $1000 range] for a fashionable, multifunctional, must-have, very attractive premium Apple iWatch, Apple could overwhelmingly disrupt yet another market.”
“With 424 retail stores around the world, Apple enthusiasts will likely line up the streets on the day of launch. Celebrities and athletes like Kobe Bryant are also rumored to be partnering with Apple,” NYC Trader writes. “One can only imagine just how quickly that trend will be set.”
Read more in the full article here.
Related article:
Report of Apple’s imminent iWatch triggers chaos at copycat Samsung – August 28, 2014
Apple to unveil wearable device at September 9th special event – August 27, 2014
Caution, paradigm smashing ahead: Apple may be primed to give ‘smartwatches’ the iPhone treatment – August 14, 2014
Woz on Samsung Galaxy Gear stupidwatch: I threw out the worthless thing after half a day – July 2, 2014
Clueless companies race to debut stupidwatches before Apple defines the smartwatch – January 3, 2014
Jim Cramer: ‘The curtain has closed’ on Samsung’s stupidwatch – October 3, 2013
The Verge reviews Samsung’s Galaxy Gear stupidwatch: Orwellian, unintuitive, oversized, and overpriced – October 2, 2013
Jean-Louis Gassée: I hope Tim Cook had fun goading Samsung to make their Galaxy stupidwatch – September 9, 2013
Stupidwatch: Why Samsung’s Galaxy Gear is a flop – September 5, 2013
Samsung Galaxy Gear watch looks rushed, misses the mark – September 4, 2013
The Galaxy Gear stupidwatch: Without Apple to copy, Samsung is clueless – September 4, 2013
Samsung announces ‘Galaxy Gear’ watch accessory for Galaxy Android devices – September 4, 2013
Really at $350 I think the numbers will a lot lower. I have tones of Apple gear including the”iWatch” msde from a nano with a strap. I would consider anything in the $100-$200 range but probably not past that unless it replaced my iPhone but that isn’t going to happen.
If Apple does indeed make a smart watch, there will be multiple tier/pricing levels, is my guess. Don’t let all this speculation affect you too harshly. I’ve been skipping many of these articles that say “according to sources”, because I think it’s all just special bus-level educated guesses.
Apple is a pretty smart bunch. If there is an iWatch coming, it will have to be an indispensable tool with a clear place in your life. They’re not going to make a trinket or a gadget like we’ve seen from the competition. They are planning to own that space forever.
If it’s worth strapping to your wrist (probably the most valuable real estate on the human body) it will be worth something. I would guess a fair bit higher than $100-$200.
Can’t wait to get one. My old Swiss Army watch is getting a little long in the tooth. I hope they use sapphire for the watch face. My current watch is pretty dinged and scratched up. I think Apple’s new watch is going to be a huge hit for those of us who still prefer to wear one.
I’m with you. I do prefer to wear a watch. My old Casio ProTrek has taken many a beating and the sensors finally cratered. I’m >-< this close to buying a newer one but I'm waiting to see what the heretofore mythical iWatch can do. If the price is $300 or less I'm in. Of course the features and functions are relevant, too, when it will come to decision-making time.
I don’t think this fashion team was assembled to sell <$300 products. I'm afraid there is going to some disappointment on the pricing.
If the iWatch was going to be released at the September 9th event I think we probably would have seen some sort of leak already… unless this project under super tight ‘Jobsian’ security it might be October or even in 2015, Apple will not release it until 100% *Wow8 ready.
Please, please, please Apple don’t include that waste of space Beckham and his even less useful spouse in on this. We need to retain at least some semblance of class.
The name iWatch is really comical to me. First, the most insignificant feature of this wearable computer/sensor is that it will also tell time. Second, I have 2 arms. Even with a Rolex (I wish) on one wrist, I still have another perfectly good wrist available for this device. Third, look at all of the artists on TV and young people today. They have multiple bracelets on each arm. That’s a lot of opportunity for sales.
Here’s what all the analysts are missing (surprise!!):
They’re assuming that all of those iWatch sales go to EXISTING iPhone owners.
And sure, a big chunk undoubtedly will. Probably 50-75%.
The rest will go to Android settlers, who will be buying a iWatch *and* an iPhone, thereby also spurring iPhone sales….after all, that shiny new iPhone 6 sure beats your existing BOGO fragmanoid phone, doesn’t it?
Might as well add that iPad and Apple TV your friend is always showing off, while you’re at it…
And heck, that ol’ Windows PC is looking a bit dated, isn’t it? I bet all that great new Apple gear would perform at its best with a new Mac at its hub, wouldn’t it???
My point: The iWatch will definitely sell well and add to Apple’s bottom line, but I predict that it will do so primarily by pushing people off the fence into buying other Apple products, too.
Halo effect, and all that.