Apple Watch could do three times Fossil sales in first year

“In its first year of sales, the Apple Watch could generate almost three times as much revenue as watchmaker Fossil Group did in the last 12 months, RBC Capital Markets predicted Monday,” Patrick Seitz reports for Investor’s Business Daily.

“RBC analyst Amit Daryanani forecasts that Apple (NASDAQ:AAPL) will sell 20 million Apple Watch smartwatches and generate $10.4 billion in revenue in its first 12 months,” Seitz reports. “By comparison, Fossil has generated sales of $3.5 billion during the past four quarters.”

“For fiscal 2015 ending Sept. 27, the Apple Watch could add about $6.5 billion in revenue and 24 cents in EPS, he said. He now expects Apple to earn $7.90 a share on sales of $211.2 billion for fiscal 2015,” Seitz reports. “Daryanani said his estimates are conservative because the Apple Watch is only supported by the iPhone 5 and 6 series phones. ‘Our 20 million (Apple Watch sales) assumption factors in about 10% penetration rate to existing iPhone sales in fiscal year 2015 and is in line to the number of iPads Apple sold during year one of the iPad launch,’ he said.”

MacDailyNews Note: Apple’s “spaceship” Campus 2, currently under construction, will weigh in at roughly 2.8 million sq. ft.

Read more in the full article here.

Related articles:
Enjoy it while it lasts, Fossil – Apple Watch looms – November 13, 2014
Barclays: Apple Watch could crush companies like Fossil – September 16, 2014

6 Comments

  1. I have a feeling the Apple Watch is not going to be a huge monster hit. It will appeal to niche market only and be a accessory to the iPhone. The watch requires to much work to maintain and I think the average person isn’t going to get it. The rate of upgrade will also have to be slower as well. The Apple Watch will be the Apple TV of the mobile devices.

    1. I think for people with plenty of disposable income, the Apple Watch will be a no-brainer (at least, the $349 one).

      For everyone else, it’ll depend on their available cash and “how new is their iPhone.” Some will opt to instead upgrade phones, others will decide to keep their 5 or 5S and get the Apple Watch.

      Most won’t do both, I’d bet, so great sales of the Apple Watch will likely have some negative impact on iPhone upgrading, ironically.

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