Apple Inc. (NASDAQ:AAPL) is gearing up to reveal the details of its Apple Watch. Will this watch boost the company’s value further ahead or will it pull it back? Many questions ponder among the investors and shareholders ahead of the most awaited Apple Watch event on Monday. Meanwhile, Travis McCourt of Raymond James shared his outlook on the Apple Inc. (NASDAQ:AAPL) event and sales potential of the smartwatch in CNBC.
There are many numbers floating around the street which says that Apple Inc. (NASDAQ:AAPL) will be able to sell around 20 – 40 million units of Apple Watch in the first year. McCourt said that based on surveys conducted by Raymond James, around 10% of iPhones showed significant interest in buying Apple Watch, which sums up to around approximately 30 million users. He said that he was not sure if all of them will buy an Apple Watch in the first year, or if they will be waiting for further releases of the smartwatch.
“Obviously, when you are running close to $200 billion of revenues, its hard to move the needle right. The watch market today is $30 billion or so. So they have got to not only take some share but actually grow that market. They have done that in smartphones and tablets before. In terms of the interest level, the surveys that we do suggest about 10% of iPhone users have showed interest in buying an Apple Watch, that would be about roughly 30 million users and whether all those come out and buy in the first year in the first iteration or not, we will see,” McCourt said.
McCourt said that there are still a lot of unknowns regarding the Apple Inc. (NASDAQ:AAPL)’s smartwatch and most of the details will be revealed during the event on Monday. He added that it will be very difficult for Apple Inc. (NASDAQ:AAPL) to sell a billion smartwatches without significant price reduction.
McCourt pointed out that both iPhone and iPad needed a significant App ecosystem to be built before it started selling big. So he feels that it will the same with Apple Watch as well.
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