The firm estimates a $299 selling price, and 25 percent margins on each iWatch sold, which is lower than its iPad and iPhone margins, but that number should increase with more volume.
"We are more confident that Apple will be introducing the iWatch before the holiday season following WWDC's introduction of HealthKit, recent healthcare hirings, the acquisition of LuxVue Technology, and positive comments from Eddy Cue at the Re/Code Conference," said the analyst.
If that figure is hit, it would surpass first year sales of the iPad, which were modest at 19.5 million, although it is important to note that the original iPad sold for an average of $550. Sales then jumped to 47.6 million in the second year.
"We expect iWatch sales to roughly track iPad unit sales -- similar penetration rates would mean higher sales," he added. "iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less. On the other hand, iWatch is the first product to be worn, which might not appeal to all users."
Apple is expected to release the fitness-based wearable in October.
Written by: Andre Yoskowitz @ 9 Jun 2014 21:58