Last week, Apple began pre-orders on the Apple Watch and its hundreds of varieties before the smartwatch goes on sale officially this Friday.
Carl Howe of Think Big Analytics has been one of the biggest bulls on the launch of the device, suggesting that Apple has already sold over 3 million units at an average price of over $500, selling 1.8 million Sports (starting at $349), 1.3 million Watches (starting at $549) and 40,000 Edition (priced at $10,000 or higher).
"I've built a simple model that predicts that the initial run of watches was more than 3 million units and will yield Apple Watch revenues of over $2 billion for the first two weeks of sales," said Howe. "The model suggests that while Sport Watch will lead sales in volume, selling 1.8 million units through May 8, Apple Watch will actually lead in revenue during that period, garnering about $900 million versus Sport's $675 million. I also believe that Apple's decision to introduce the Edition will be validated by $500 million in sales on only 40,000 units." If accurate, the figure crushes all other smartwatches to date, including the popular Moto 360, and that's only with pre-order sales.
In addition, Howe believes the device will be Apple's most profitable, with gross margins over 60 percent compared to the already large 35-40 percent it sees for its iPhone line. "Why? Because the core electronics modules in the expensive models are the same ones used in the Sport models, and they just don't cost that much," noted Howe.
Source:
BI
"I've built a simple model that predicts that the initial run of watches was more than 3 million units and will yield Apple Watch revenues of over $2 billion for the first two weeks of sales," said Howe. "The model suggests that while Sport Watch will lead sales in volume, selling 1.8 million units through May 8, Apple Watch will actually lead in revenue during that period, garnering about $900 million versus Sport's $675 million. I also believe that Apple's decision to introduce the Edition will be validated by $500 million in sales on only 40,000 units." If accurate, the figure crushes all other smartwatches to date, including the popular Moto 360, and that's only with pre-order sales.
In addition, Howe believes the device will be Apple's most profitable, with gross margins over 60 percent compared to the already large 35-40 percent it sees for its iPhone line. "Why? Because the core electronics modules in the expensive models are the same ones used in the Sport models, and they just don't cost that much," noted Howe.
Source:
BI
