Apple Could Sell Up to 10 Million iWatches in the First Year

Piper Jaffray analyst Gene Munster says Apple could sell up to 10 million iWatches in the first year. His team asked 799 U.S. customers whether they would spend $350 on a watch that connected to the iPhone. 88% said no and 12% said yes. Munster realized that not everyone who was interested in the device would actually purchase one, so he conservatively estimated that 2-4% of iPhone owners would buy the device in the first year.



If you assume that Apple sells 7.5 million units in the first year (midpoint of our 5-10 million unit range) at an ASP of $350 and a 30% gross margin, it would increase our 2014 revenue estimates by $2.6 billion or 1% and gross profit dollars by $790 million or 1%.
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