“I believe the Street is estimating that Apple sold about 5.5 million Watches in the December quarter, which is also what I am projecting,” Chuck Jones writes for Forbes. “At an Average Selling Price (ASP) of $475 this would generate $2.6 billion in revenue, 3.3% of total revenue and revenue growth and about $0.11 in EPS.”
“Every 1 million Watches that are sold is worth about $475 million in revenue and $0.02 in EPS. While the direct impact from Watches is small when you look at Apple’s total finances it does add some incremental growth, sells some more iPhones and just as important increases the switching hassles and costs to move off the Apple ecosystem,” Jones writes. “If Apple wasn’t so large the Watch would be having a much more meaningful contribution to the company’s financial results. The success of the iPhone hampers the perception of the Watch in multiple ways. Additionally I believe there is a large group of potential buyers who are waiting for version 2 or 3 to buy one.”
Read more in the full article here.
MacDailyNews Take: Anecdotally, we know a lot of people who just got new Apple Watches for Christmas.
SEE ALSO:
Apple Watch future is bright as U.S. smartwatch sales seen primed for surge – December 16, 2015