RaduTyrsina
News Team
Apple Watch represents a totally new category for Apple, as the last time when the company entered a new business was with the iPad launch back in 2010. And even if we already know how the device looks like and when it is said get released, there are still many things that remain unknown about Apple's first entry into the smartwatch.
According to RBC Capital Markets, the upcoming Apple Watch is predicted to sell 20 million units in its first 12 months. The company also increased its price target for Apple stock to $120 per share, saying that Apple Watch sales will bring $10 billion in added revenue in the first year.
RBC analyst Amit Daryanani said that Apple's stock could increase to as much as $120 per share, basing his new price target on estimates for Apple Watch sales. The analyst expects the device to launch around March of 2015 with an average selling price of $520.
Daryanani also says taht if Apple can sell 2 million units in the first two weeks of March, then the Apple Watch will be adding about $1 billion in revenue for the March quarter.
He says that his 20 million sales figure factors in an estimated 10 percent penetration rate to existing iPhone sales in fiscal 2015. However, questions remain about battery life, gross margin, realistic iPhone penetration and the value of Apple Pay integration.
Source: RBC Capital Markets
