Only 1 In 20 Americans Wanted To Buy Apple Watch: Is It Big Or Small For Apple?

Cohen said that this is not just a watch from Apple, but it’s a wearable device, which has multi-functionality. He pointed out that according to their survey many people are looking up this device for health monitoring, gaming, shopping, etc. So Apple Watch is not just another watch in the market and Apple has made it in such a way that it can complement the ecosystem for Apple’s consumers.

“I think there is a point to make here which is, this is not just a watch, It’s an actual wearable device. [..] in our survey we asked people what else they are going to be doing with this, besides telling time. 30% said they are going to be using it for health monitoring. Other 20% said they are going to be using it for shopping, 15% for gaming. So they are not really going after the watch market. They are not trying to be just a watch,” Cohen said.

Cohen feels that Apple is creating a completely new category with their Apple Watch.

We are skeptical about these estimates. If Apple Inc. indeed manages to sell 10 million watches in its first year, this will not only generate a couple of billion dollars in profits, but also would open the door for much higher profits over the coming years. We think Apple can easily generate 30% annual topline growth in this category especially if it manages to sell 10 million watches.

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