Will Apple Inc.'s iWatch Do Even Better Than the iPad?

Another day, another Apple  (NASDAQ: AAPL  ) iWatch rumor. This time, the Nikkei is reporting that Apple is finalizing specifications for its widely expected smartwatch. The device will reportedly feature a curved OLED display, collect health-related data, and allow users to read messages from their phones. Apple may also partner with Nike to integrate services since Nike has its established Fuel platform.

Industry sources estimate that Apple is targeting 3 million to 5 million units per month, which translates into 36 million to 60 million units per year. Even using the low end of that estimate, that level of volume would be wildly successful. For comparison, the iPad is currently Apple's most successful entry into a new product category. The Mac maker sold nearly 20 million units in the first four quarters of availability.

The real unknown is price. While the iPad started at the $500 entry-level price, no one knows where Apple will price the iWatch. Some analysts expect it to price as high as $1,000, which may be a challenge for mainstream adoption. Current offerings are priced around $300, so if Apple prices at a premium it may end up in the $300 to $500 range.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's iWatch with Evan Niu, CFA.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

Read/Post Comments (3) | Recommend This Article (8)

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  • Report this Comment On June 08, 2014, at 9:48 PM, zack777 wrote:

    I still wear a watch but so many of my friends and coworkers have stopped wearing watches and just use their phones to tell the time. I therefore think there is a really huge market opportunity for Apple, and if they come out with a beautiful, useful watch with some must have features, the sales numbers will be so high that they will surprise. They will get the gadget gang with it, the Apple fans, and I think they'll be able to pull in buyers from the group that have given up wearing watches too.

  • Report this Comment On June 09, 2014, at 8:47 AM, MightyMinnow wrote:

    In Chicago you can't hold a cell phone while you drive. Where do you pull over to make a call? It makes me rethink about getting a land line. If its (the watch) voice activated, and gives directions verbally, it could find a market?

    If time and body temperature is all they have up their sleeve, we'd be better off selling nose bleed remedies.

  • Report this Comment On June 09, 2014, at 8:57 AM, Mathman6577 wrote:

    In addition to the health monitoring applications I think a potentially bigger market will be in the Internet of Things, which could be a $7T market within the next 5 years. The watch could control gadgets and systems around the home, car, and office w/o having to pick up the phone (or having it on your person). That being said it could cut into iPhone sales (unless the phone display gets bigger).

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

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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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