Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How Much Could an Apple Inc. (AAPL) iWatch Add to Its Bottom Line? – NIKE, Inc. (NKE)

Over the last year, there have been rumors of Apple Inc. (NASDAQ:AAPL) releasing a TV that will revolutionize the television market. That rumor, along with strong iPhone 5 demand exploded Apple Inc. (NASDAQ:AAPL) through $700 per share. Nowadays, with Apple missing analyst estimates and rumors of margin contraction, shares have fallen from grace.

Apple Inc. (NASDAQ:AAPL)

However, there is a bit of light at the end of the tunnel for all investors waiting for an innovative product to “change the game” in the meantime. This “light at the end of the tunnel” could be a wristwatch, or what the media has dubbed, an “iWatch.”

What are the analysts saying?

Amit Daryanani of RBC Capital Markets was one of the early adopters of trying to estimate what an iWatch could do for Apple’s bottom line. Daryanani argued that an iWatch could add up to $9 billion to revenue and $2.00 per share to Apple Inc. (NASDAQ:AAPL)’s bottom line within its first year of existence.

On a different note, Adnaan Ahmad an analyst at Berenberg, noted that even with a launch of an iTV and an iWatch, Apple still may not see the growth that investors and other analysts are anticipating. Ahmad states that even if the iTV and iWatch capture 5% and 10% of each respective market, these devices will only achieve a respective quarterly revenue run-rate of 10% and 5% each.

Why buy an accessory product

A watch is an accessory. So, even it being an Apple Inc. (NASDAQ:AAPL) product, it should just be considered an accessory – a fancy accessory at that. Since this watch will likely be technologically advanced, the only comparison that it could be compared to would be NIKE, Inc. (NYSE:NKE)’s Nike+FuelBand.

The Nike+FuelBand is much more than just a watch. According to NIKE, Inc. (NYSE:NKE)’s website, “Nike+ FuelBand measures your everyday activity and turns it into NikeFuel. It tracks calories burned, steps taken and more. It’s also a great watch. Nike+ FuelBand tracks running, walking, dancing, basketball and dozens of everyday activities.”

The initial launch of the NIKE, Inc. (NYSE:NKE)+FuelBand saw much hype and much demand. On the day of its launch, Nike tweeted, “Today’s limited pre-order stash of the Nike+ FuelBand sold out fast. Keep your eyes on @NikeStore & @NikeFuel for inventory updates.” Some unconfirmed sources said that the device sold out within 4 minutes.

We can obviously assume that Apple Inc. (NASDAQ:AAPL) would release something more than just a watch. The most recent news of the iWatch is a patent filed by Apple, for a flexible-touch display. This could be one of the revolutionary features that analysts and investors were hoping for.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.