“Apple Inc. is facing continued supply constraints that could weigh on watch sales and margins this calendar year, but Apple Watch is expected to eventually become Apple’s most profitable product category, even above the iPhone, according to CLSA analyst Avi Silver,” Jennifer Booton reports for MarketWatch.
The analyst “lowered his fiscal 2015 Apple Watch forecast to 16 million from 20.5 million previously. But Apple Watch is eventually expected to have ‘very positive margin’ contribution, and Silver left his 2016 unit estimate unchanged at 35 million,” Booton reports. “He also left his EPS estimates largely unchanged, saying the troubling Apple Watch launch should be mostly offset by stronger-than-expected iPhone demand, particularly in China.”
Read more in the full article here.
MacDailyNews Take: “Can’t make ’em fast enough” is a good problem to have – as long as it doesn’t last too long. This holiday season will be big for Apple Watch, if Apple can get supply/demand into some sort of reasonable balance. As for Apple Watch becoming more profitable than iPhone, when does “eventually” arrive, exactly? Three years? Five years?