iWatch concept: Espen Oxholm

iWatch concept: Espen Oxholm

Estimating the revenue value of a product whose price is unknown and whose existence hasn’t even been confirmed is probably about as tenuous as it gets, but Morgan Stanley analyst Katy Huberty reckons that the iWatch could generate $17.5 billion in the first twelve months.

To put that into perspective, the iPhone generated $2.5B and the iPad $12B in their respective first 12 months of sales … 

Mindful of supply constraints on recent Apple products, such as the iPhone 5s and Mac Pro, Huberty says that could reduce year one sales to $12-14B, still increasing Apple’s earnings by somewhere in the 6-10 percent range.

Huberty believes that existing iPhone customers will be the primary market for the device.

Our working assumption is that iWatch largely will be adopted as an accessory device and, therefore, sold into the existing customer base, like the iPad, rather than to new customers, like the iPod or iPhone.


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

14 Responses to “iWatch could be worth as much as iPhone & iPad first-year sales combined, says Morgan Stanley”

  1. This is the reason that when apple posts record setting numbers every quarter their stock still drops these idiots are setting completely unrealistic goals for a company that already pushes the limit of success


  2. seem my question is still “Do I need an iWatch?” No, but “Would I buy and iWatch?” Yes!


    • Roger Mercer says:

      People who like me have severe diabetes coupled with temporal arteritis will live and die by these iWatches. While arteritis is somewhat rare, diabetes is rampant. I’d love a device that checks my blood sugar without sticking needles in my fingers. I’d also like to keep tabs on my blood pressure and heart rate, as well as calories burned during exercise. All of these are possible capabilities of the iWatch. So, yes, I need it. And I want it.


  3. Ryan DeRocco says:

    I just wish it would come out already. My little Pebble is doing the job for now, but it’s ugly, and I’m not going to pay $250 for Pebble Steel when we all know this iWatch will put everything else to shame. Come on bigger iPhone 6 and new watch!


  4. jweaber says:

    So at a $350 price tag, that would be 50 million devices in the first year. I like her optimism.


  5. PMZanetti says:

    DERP. Find me any iPhone accessory that has made that much in its first 12 months.


  6. Oh these damn analysts again..They’d be so dissapointed if apple sold less then 50 million iWatches in the first year! Even though it may end up becoming the highest selling wearable in the market many times over..


  7. Tallest Skil says:

    Apple needs to sue Morgan Stanley for intent to harm.


    • PMZanetti says:

      Seriously. This is a new low for analysts attempting to short APPL. A device that doesn’t exist or even have a guessable price point, or guessable market demand….has an expected year 1 revenue attached…and one that is so astronomical it must be a joke.


  8. Roger Mercer says:

    Please pay more attention to concept drawings. A circular or round shape will work only if the watch is flexible. In case you haven’t noticed, wrists are oval-shaped, not round.


  9. Samir Shah says:

    I agree that may be the case.