Apple's $17.5 Billion iWatch Opportunity

Apple  (NASDAQ: AAPL  ) is widely expected to launch its iWatch this year, which should include a wide range of health and fitness features. One analyst is offering up estimates for how the rumored product might fare during its first year. Morgan Stanley analyst Katy Huberty thinks that the iWatch could generate upwards of $17.5 billion in revenue over the first year, unless supply constraints hold back Apple's ability to meet demand. Huberty also expects Apple to price the device at $300.

Samsung  (NASDAQOTH: SSNLF  ) didn't fare so well with its own $300 Galaxy Gear, although the company is likely preparing to launch a new version in coming months. Even though Apple may pursue a similar strategy of making the iWatch more of an accessory than a stand-alone device, Apple enjoys a much stronger "halo" around its products than Samsung. 

In this segment of Tech Teardown, Erin Kennedy discusses Apple's iWatch opportunity with Evan Niu, CFA, our tech and telecom bureau chief.

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  • Report this Comment On February 05, 2014, at 12:17 AM, Waldo wrote:

    Samsung's watch ended up looking like a wayward Pez despenser that a grade two student would feel silly wearing. I am sure Apple will not release whatever it is they will make until it is up to standards and ready to go. Keep the Pez in your pockets where they belong.

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Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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