The biggest mystery of Apple Inc. (NASDAQ:AAPL)’s line of product has to do with the iWatch that is to be released sometime this year. Startup investor, Fred Wilson, has already aired his skepticism on iWatch being a hit while CNBC’s, Jon Frott, reiterates that history might come back to bite the Cupertino-based company.
History has shown that Apple Inc. (NASDAQ:AAPL) never hits it big on the launch of a new product, seen by the company only selling 10 million units of the iPhones on the first year.
“What I argue is that Apple Inc. (NASDAQ:AAPL) tends not to hit Homeruns with products introductions. They might become home runs later, but they hit doubles and singles. Take a look at the iPad it sold less than 2 million units its first year out,” said Mr. Frott.
Wilson joins other analysts who remain skeptical on the iWatch living up to expectations, experienced by the likes of iPhones and iPads. Frott notes that Apple Inc. (NASDAQ:AAPL) devices usually start gaining ground in the market on the second year after launch something that should be a big concern to the Street.
A number of investors continue to hold their stakes in the company on belief that the release of the iWatch will give the stock the much-needed energy to surge even higher in terms of valuation. Wilson continues to air concern that not everyone will wish to wear a computer on their hands something that will considerably affect the device’s demand.
Re/code managing director Edmund Lee maintains that it is not all doomed for Apple Inc. (NASDAQ:AAPL) with the iWatch as the device is not expected to be a complete flop
“It might not be a hit but it is not necessarily going to be a flop either. The other thing to note is we still don’t know exactly how the watch is going to work. We know it at least has to work with an iPhone likely. The universal potential customers is already really small because you are only starting with those people who have iPhones to begin with,” said Mr. Lee
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