“On average, analysts expect Apple will sell 22 million watches this year and 33 million next year, according to the 17 reports I have cataloged,” Aaron Pressman writes for Yahoo Finance. “With an expected average selling price of $450, most analysts are predicting that sales of the low-end model will dominate.”
“With those assumptions, Apple could generate almost $10 billion of new revenue this year and $17 billion next year. That’s a huge amount of sales for most companies, but Apple had revenue of $200 billion last year generating net income of $44 billion,” Pressman writes. “This week, the Wall Street Journal reported that Apple had ordered manufacturers to build 5 million to 6 million watches ahead of the April debut.”
“If consumers go along with Apple’s reported watch mix, and one in six opt for the gold model, the average selling price will be much higher. Assuming $500 for the midrange model and $5,000 for the gold watch, the average selling price comes out to almost $1,200,” Pressman writes. “Start modeling those assumptions and pretty soon Carl Icahn’s Apple target of $216 looks a lot more reasonable. New revenue could total $25 billion this year and $40 billion in 2016.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]
Apple Watch Edition will cost at least $5,000, probably much more – February 19, 2015