The Street’s attention with regards to Apple Inc. (NASDAQ:AAPL) now shifts to the much-awaited iWatch that investors hope will give the stock the much-needed energy to surge, having stagnated in the recent weeks. One man who remains skeptical about Apple’s new wearable is Piper Jaffray’s, Gene Munster. During an interview on Bloomberg, the analyst reiterated that Apple sales on the product might be affected by the fact that the gadget is poised to only address a niche market.
Munster believes Apple Inc. (NASDAQ:AAPL) will have to do a little bit more if it is to be successful with the iWatch this year. Incorporation of more apps should come into play as one of the ways of driving value among consumers; to avert the possibility of demand declining going forward.
“We are thinking about it right now as a Smartwatch market not a broader wide market so, that is going to be obviously a smaller initial market.[…] The interest level is very low surprisingly low it runs about 10% of iPhone owners say they are going to buy the watch,” said Mr. Munster.
Apple Inc. (NASDAQ:AAPL) has already announced that it is to release the iWatch earlier this year a move that is expected to set the tone for the Consumer Electronic Show. A low-end version of the iWatch is to go on sale for $350 with Apple not giving any details for how much the high-end version will go on sale for.
Apple Inc. (NASDAQ:AAPL) sales are poised to be affected by the fact that the market is still developing unlike the iPhone sales that has over the years turned out to be highly lucrative. Munster expects the Cupertino-based company to only sell between 10-20 million units this year, unlike in the iPhones where sales usually clock highs of 200 million units.
“Maybe down the road this is going to be a 50 million units type of business, but this is not going to be a 300 million type of business for Apple Inc. (NASDAQ:AAPL),” said Mr. Munster.
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