iWatch From Apple: Could Apple iWatch be more Profitable than TV?

iWatch From Apple: It seems that more people than ever before are excited about the potential for an Apple Inc. (NASDAQ:AAPL) TV. While this is something that the Cupertino-based company is definitely considering, it is important to note that there are other devices – such as an iWatch – that could be more profitable. Wouldn’t it make sense for Apple to focus on these products first?

Apple is actually the smart money’s second favorite publicly traded company (see why it’s important to pay attention to hedge fund activity).

According to a recent article by Bloomberg, there is reason to believe that an iWatch could be more profitable than a television.

Here is what the article has to say:

“The global watch industry will generate more than $60 billion in sales in 2013, said Citigroup Inc. analyst Oliver Chen. While that’s smaller than the pool of revenue that comes from TVs, gross margins on watches are about 60 percent, he said. That’s four times bigger than for televisions, according to Anand Srinivasan, a Bloomberg Industries analyst.”

Take a closer look at that information. The gross margins on watches are roughly 60 percent. This is four times more than for televisions. With this in mind, it would only make sense for Apple Inc. (NASDAQ:AAPL) to focus its attention on releasing an iWatch.

Does this mean that the company will never consider a television product? Of course not. That being said, an iWatch could do wonders as far as profits are concerned. Not to mention the fact that this is something that would get people talking once again.

In the same article, Citigroup Inc. analyst Oliver Chen is quoted as saying the following:

“This can be a $6 billion opportunity for Apple, with plenty of opportunity for upside if they create something totally new like they did with the iPod — something consumers didn’t even know they needed.”

As you can see, the key here is that Apple Inc. (NASDAQ:AAPL) gets things right the first time around. This is a huge opportunity, but only if the new device is something that people are interested in buying.

With so much pressure to produce the best of the best, this may be why an iWatch has not yet been released.

What are your thoughts on this? Do you think an iWatch will come before an Apple Inc. (NASDAQ:AAPL) television?

Check back here for more updates on iWatch From Apple.

DISCLOSURE: I have no positions in any stock mentioned.

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