Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
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:





 Apple/Mac
1.   Will Next OS X Bring New Apple Grief?
2.   Apple and Samsung Feel the Heat
3.   Earnings, Excitement Grow for Apple
4.   Mac OS Yosemite Beta 4 Released
5.   Apple Smart Watch Patent Surfaces


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Earnings, Excitement Grow for Apple
Momentum mounts as rumors swirl.
Average Rating:
Mac OS Yosemite Beta 4 Released
Public preview could be coming soon.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Is the Amazon Fire Phone a Winner?
A late entry into a packed category of smartphones, Amazon's Fire phone offers a variety of unique features. Now, the reviewers are assessing if they're enough to make the phone stand out.
 
Review: Amazon Fire Offers New Ways To Use Phones
The Fire phone uses Android, but Amazon has modified it to the point that it's barely recognizable. That means the phone offers new ways to navigate, discover and, of course, shop.
 

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 | CRM Systems | 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.