Apple estimated to sell up to 10 million iWatches in first year

iWatch is expected to be released, or at least announced by Apple in 2014. We recently reported Apple’s acquisition of Cue, which indicates that Apple may be looking to implement some new technology in the gear. But it’s not confirmed at the moment. 

Regardless of the feature is included or not, people have strong sales expectations. Gene Munster analyst Piper Jaffray has said that Apple can sell 10 million iWatches in the first year of release.

Jaffray’s team asked total 799 customers in U.S. that would they buy a match that can be connected to the iPhone. 12% among the lot said yes, while 88% went with a no answer. Munster also came to know that not everyone with an iPhone would be interested in the iWatch, so the estimate was that 2-4% iPhone owners are going to purchase it in the first year.

If its assumed that Apple manages to sell 7.5 million units in the first year at an estimated price of $350 and a profit margin of 30%, they can easily increase revenue in 2014 by 2.6 billion/ 790 million/ 1%.

Katy Huberty from Morgan Stanley also made somewhat similar estimates last year but had 10 times higher figures. She estimated a penetration rate of 20% to 60% after taking 500 million iTunes account. The devices were from $100 to $300. The sales estimate was 50 to 150 iWatchers a year with $10 to $15 in extra revenue.

Hurberty’s estimates presented in a chart:


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