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Watch won’t be ‘needle-mover,’ however Apple might sell 10M in first yr

A mockup of a prospective Apple iWatch.

A mockup of a potential Apple watch.

An Apple watch is probably not an enormous earnings booster but it could possibly nonetheless capture as many as 10 million shoppers.

In accordance with a Piper Jaffrey survey of 799 US consumers, analyst Gene Munster believes Apple may sell between 5 million and 10 million smart watches throughout the initial launch 12 months. The up to date poll requested individuals whether they would buy a $350 watch that can hook up with a phone.

To start with glance, the survey outcomes don’t seem to bode smartly. Amongst phone owners polled, handiest 12 % mentioned they’d be occupied with shopping for an Apple watch, leaving 88 pace on the sidelines. On a global basis, that percentage is more likely to be even lower. nonetheless, that implies anywhere from 2 % to four pace of phone users around the globe could if truth be told buy the watch all the way through the primary yr.

How would that affect Apple’s bottom line? Little or no, Munster indicated in an investors notice launched Monday. Assuming a midpoint estimate of seven.5 million watch gross sales, Apple’s earnings and gross income would each upward thrust by simply 1 p.c. but the analyst sees different benefits from an Apple smart watch.

“while we do not view the watch as a likely needle-mover for Apple in the case of earnings in 2014, we put it in a similar category as the TV in that it might reveal Apple’s means to innovate (good for the a couple of) and doubtlessly result in a extra significant new product category in wearable tech,” Munster stated.