Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Apple/Mac
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
More Potential Profit in an Apple iWatch than a TV
More Potential Profit in an Apple iWatch than a TV

By Jennifer LeClaire
March 4, 2013 1:37PM

    Bookmark and Share
"I've been expecting this product along with many others this year," said analyst Rob Enderle of an Apple iWatch. "The idea is an interesting one, put an informative screen on your wrist which is far handier than in your pocket or purse....It could provide a better user experience for those walking, running, riding a bicycle, or even driving a car."
 



The iWatch rumors probably won't die until the world sees one. The latest chatter revolves around a Citigroup analyst's predictions about how much revenue Apple could generate from the wearable device.

According to Citigroup analyst Oliver Chen, the global watch industry witnessed more than $60 billion in sales in 2013 alone. Chen estimates the gross margins are about 60 percent on watches, so entering the watch market could be more profitable for Apple than entering the TV market. Anand Srinivasan, a Bloomberg Industries analyst, said gross margins on watches are four times bigger than for televisions.

"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," Bloomberg quoted Chen, who covers luxury-goods retailers, as saying.

iWatch by the Numbers

Apple has declined to comment on the possibilities of an iWatch, but that hasn't stopped the speculation. The numbers are compelling. IHS Electronics & Media estimates the TV industry will generate $119 billion in sales in 2013. Using Chen's margin estimates, Bloomberg figures a 10 percent share for Apple in the watch market would total a gross profit of $3.6 billion. At the same time, a 10 percent share for Apple in the TV market would total about $1.70 billion.

The rumors started in December when Chinese blog site Tech.163.com started reporting that Apple is in cahoots with Intel to build an iOS watch, and speculates that it is within the realm of possibilities. According to Tech.163.com, supply chain resources have leaked details that describe the watch as a Bluetooth-enabled device with a 1.5-inch OLED screen. Sources said Apple could roll out the iWatch to the masses as early as the first half of 2013.

Piper Jaffray analyst Gene Munster has said wearable computing is something Apple might move into eventually. Apparently, there's at least some market demand. Entrepreneurs raised more than $10 million in a Kickstarter campaign for an iPhone-connected smart watch called the Pebble.

The Jobs Effect

Rob Enderle, principal analyst at the Enderle Group, he was not surprised by the ongoing rumors.

"I've been expecting this product along with many others this year. The idea is an interesting one, put an informative screen on your wrist which is far handier than in your pocket or purse," Enderle told us. "With sensors and a connection to your smartphone it could provide a better user experience for those walking, running, riding a bicycle, or even driving a car."

Still, he said he's concerned that an iWatch might not be a smash success without the Steve Jobs marketing machine behind it. Jobs took the iPad into a market that had decided tablets were trivial and made it -- and the sector -- a tremendous success.

"While the watch market is huge, currently they aren't thought of as either trendy or cool, and that means this product will need a Jobs-like launch for folks to see the device as compelling," Enderle said. "I haven't seen Apple do a Jobs-like launch without Jobs. So the question isn't whether they can build a device that can be cool, it is whether they have what it takes to make us see the device as something we want to buy."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Apple/Mac
1.   Mac OS Yosemite Beta 4 Released
2.   Apple Smart Watch Patent Surfaces
3.   iPhone 6: Bad for Apple Tablet Sales?
4.   Longtime Apple Director Steps Down
5.   Business Impact of IBM-Apple Deal


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Mac OS Yosemite Beta 4 Released
Public preview could be coming soon.
Average Rating:
iPhone 6: Bad for Apple Tablet Sales?
Most likely, it will be a huge hit.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Enterprise Hardware Spotlight
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.