Apple Watch Said to Account for 36% of Apple's Revenue Growth Next Year

Discussion in 'Apple iPad News' started by RaduTyrsina, Jan 6, 2015.

  1. RaduTyrsina

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    According to Evercore analyst Rob Cihra, who issued a note to investors on Monday, the Apple Watch will launch around March, and will achieve an average selling price of $500. The firm advised investors to buy in to AAPL stock ahead of Apple Watch's imminent launch.

    With around nine months to sell in calendar 2015, the analyst expects the Apple Watch to be a "meaningful" addition to the company's bottom line. He says that Apple's new wearable will add 4 percent to its calendar 2015 revenue, and will account for 36 percent of its growth over 2014.

    He mentions that the biggest share of Apple's 2015 growth will still come from the iPhone, representing more than 60 percent. The analyst estimates total Apple Watch shipments to hit 18.5 million units this year, and 22.9 million more in calendar 2016.

    Speaking of the larger wearable devices market, the analyst said the biggest challenge consists in creating small, usable devices that are fashionable. And that's exactly where the Apple Watch will win.

    "(Apple has a) proven ability to develop intuitive software UIs and design tech products that are fashionable as they are functional. We think focusing on smartwatch specs misses this 'fashion intangible,' likely the most important factor in ultimate adoption, yet we see Apple as the one company that could make smartwatches cool."

    Source: AppleInsider
     

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