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. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Apple/Mac
Fiercely productive scanners
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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Apple/Mac
1.   Samsung Tech Experts Talk Patents
2.   Phones Annoy Patent Trial Judge
3.   Apple vs. Samsung: Latest News
4.   Hey Siri, Can You Hear Me Now?
5.   Finding Apple-Samsung Jury Hard


advertisement
Phones Annoy Patent Trial Judge
Disrupting Apple-Samsung proceedings.
Average Rating:
Finding Apple-Samsung Jury Hard
Locals have strong opinions on case.
Average Rating:
Kill Switch Could Save Users $2.6B
Carriers, however, are not impressed.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 
How To Beat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
After Heartbleed, OpenSSL Calls for More Support
The president of the OpenSSL Foundation says more support is needed from companies and governments that use its software so that it can better spot and fix flawed pieces of code such as Heartbleed.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 
CTIA Caves, Volunteers Kill Switch Plan
After bucking against the concept of a smartphone kill switch, the CTIA just announced the “Smartphone Anti-Theft Voluntary Commitment” to thwart smartphone thefts in the U.S.
 

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 | XML/RSS Feed

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.