“Lorraine Luk and Daisuke Wakabayashi, reporting today for the WSJ, “Apple Orders More Than 5 Million Watches for Initial Run”: ‘Apple has asked its suppliers in Asia to make a combined five to six million units of its three Apple Watch models during the first quarter ahead of the product’s release in April, according to people familiar with the matter… Half of the first-quarter production order is earmarked for the entry-level Apple Watch Sport model, while the mid-tied Apple Watch is expected to account for one-third of output, one of these people said,'” John Gruber writes for Daring Fireball.
“If Apple actually sells 1 million Edition units per quarter, and they sell for an ASP of $5,000, that’s $5 billion in revenue per quarter — just for the gold Edition models,” Gruber writes. “If the ASP is closer to $10,000, which I still think is possible, double that.”
“3 million Sport units at $350 comes to “only” $1 billion or so. 2 million stainless steel regular units with a $1,000 ASP would be an additional $2 billion,” Gruber writes. “So as a business — if the WSJ’s sources are correct, and if Apple is correctly predicting demand — Apple Watch revenue will be dominated by the gold Edition units, accounting for double or more of the revenue from all the other models combined.”
Read more in the full article -recommended – here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
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Apple orders more than 5 million Apple Watch units for initial run – February 17, 2015