Apple’s move into premium smartwatches with the Apple Watch Ultra is a $10 billion to $38 billion opportunity, Evercore analyst Amit Daryanani says in a new note to clients.
Phillip Elmer-Dewitt for Apple 3.0:
From “Watch Out!” a note to Evercore clients that landed on my desktop Friday:
Investor focus remains as always on the iPhone at this time of the year; however, for a year in which investor expectations are ranging from revenue declines in the bear case to modest growth in the bull case, every driver of growth matters. In that respect, we are taking a look at both the near-term and long-term growth opportunity from the recent move from Apple to enter the premium Smartwatch category; although, with significant room for further premiumization from hereon…
…The Ultra marks Apple’s entry into the market for performance watches for Sports (led by its positioning for Extreme Sports) as well as entry into the premium Smartwatch market.
We estimate the premium Smartwatch opportunity for Apple ranges between $10 bn to $38 bn, with the low-end of the range encompassing the upgrade of consumers focused on Sports, while the high-end of the range encompasses all consumers focused on basic features, like better battery life.
MacDailyNews Take: If so, look for Apple Watch Ultra to really start juicing Apple’s already formidable “Wearables, Home and Accessories” category.
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Apple has hit on a low-hanging fruit gold-mine. (Sorry for the mixed metaphors.)
Seriously–this device will eviscerate the “high-end” smart watch market.