Apple Inc. (NASDAQ:AAPL) is gearing up for the launch of its most anticipated smartwatch. But there were mixed expectations from analysts, with some feeling that Apple Inc. (NASDAQ:AAPL)’s smartwatch will be an instant hit and other set of analysts thinking that Apple Inc. (NASDAQ:AAPL) might not be able to meet the target. If Apple Inc. (NASDAQ:AAPL) fails to meet the target on sales of its smartwatch, what impact will it have on Apple Inc. (NASDAQ:AAPL) stock? ‘Shark Tank’ investor, Kevin O’Leary talked to CNBC’s Jon Fortt, Kayla Tausche and Carl Quintanilla about Apple Watch and its sales.
Fortt mentioned that this is a unique challenge to Apple Inc. (NASDAQ:AAPL), as there hasn’t been a product since iPod, where users need to get their hands on the product to get a feel for the functionalities of it. He added that Apple Inc. (NASDAQ:AAPL) is trying to shift a lot of people together towards the smartwatch. He feels that they might have to open up a lot of third party retailers to make sure that people are getting used to the new product.
O’Leary said that he will not buy an Apple Watch without trying it. He added that he would like to collect watches but he is not ready to swap his Panerai watch for an Apple watch. He mentioned that he has not seen a single reason to buy Apple Watch and he needs Apple Inc. (NASDAQ:AAPL) to sell the product to him, by making him feel the necessity of the product.
O’Leary feels that Apple Inc. (NASDAQ:AAPL) is not going to sell 6 million units of its smartwatch and that might hurt the stock a lot.
“[…] I don’t buy it unless I try. I mean I collect watches. I am not swapping my Panerai for an Apple Watch. I am considering may be on the other wrist. But its got to look cool and I want to understand why I want it. So far I see no reason to own it. You have got to sell me and I agree with Jon, you have got to sell me, show me the feature, show me something. If it can do blood pressure for me, I have paid $600 or whatever it is, can’t just do that, all does pulse, everything does pulse. I think this thing isn’t going to sell 6 million units and I think its going to hurt the stock,” O’Leary said.
Tausche pointed out that it will be tough for Apple Inc. (NASDAQ:AAPL) to balance out the fans who would like to stand in queue to get their hands on the low cost Apple watch and other who would like to buy $17,000 Apple Watch. O’Leary feels that Apple Inc. (NASDAQ:AAPL) might not be able to sell $17,000 watch and he said that he doesn’t understand the logic.
Quintanilla said that Apple Inc. (NASDAQ:AAPL) has already started to publicize the smartwatch by Cook wearing the device to NCAA game and so on. Fortt thinks that it is needed for a new product like smartwatch.
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