The Piper Jaffray analyst said that Apple Inc. (NASDAQ:AAPL) is not banking on its usual attack when trying to disrupt a new industry with the Apple Watch as they will likely be focusing on design with their new wearable device.
“I think that Apple is going to approach this market very different than they have approached other entries to market. Traditionally, Apple comes to a market with a technology approach, this time, it is going to be more of a design approach,” Munster said.
Munster made his comment as he was asked why Piper Jaffray is estimating that the average selling price of the new Apple Inc. (NASDAQ:AAPL) watch will be in the high $500 area when others are treating the Apple Watch to be at about $350.
By looking at the band side or the higher-margin side of the equation, Munster said that observers are underestimating the price of the new product from the iPhone maker. The Cupertino, California-based consumer electronics giant introduced the Apple Watch last year. Part of the product line are accessories like replaceable bands.
According to Munster, he and his team expect Apple Inc. (NASDAQ:AAPL) to talk more about these bands and other higher-margin products in their upcoming event for the Apple Watch.
Munster and Piper Jaffray has an average selling price for the timepiece from the iPhone maker at $550 to $575.
Daniel S. Och’s OZ Management increased its stake in Apple Inc. (NASDAQ:AAPL) by a staggering 5,134% quarter over quarter by the end of the fourth quarter of last year. The firm ended 2014 with about 1.58 million shares in the Apple Watch maker.
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