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Analyst: Apple iWatch could be $6 billion business

Posted: , by Alan F.

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Analyst: Apple iWatch could be $6 billion business
According to Citicorp analyst Oliver Chen, the rumored Apple iWatch could produce some very profitable numbers for Apple. Chen expects the Cupertino based company to snag 10% of the $60 billion world-wide watch industry and he says that it could be big if Apple were to "create something totally new like they did with the iPod -- something consumers didn’t even know they needed." According to those with inside information of the device, features being considered for the iWatch include an ability to make and take calls, offer some type of mapping capabilities and count steps like a pedometer. It will also be designed to monitor a person's health through data like heart rate.

Apple has applied for a patent on a device worn on the wrist using a flexible display

Apple has applied for a patent on a device worn on the wrist using a flexible display

Apple is said to have 100 engineers working on the project and has filed at least 79 patents that include the word "wrist". A recently discovered patent application revealed that Apple has considered building some type of device for the wrist that uses a flexible screen, powered by solar and kinetic energy.

This isn't the first time that a tech company tried to get into the watch business. In 2003, Microsoft teamed with watchmakers Citizen Watch Co. and Fossil to build a watch that would deliver sports scores, weather and traffic reports. By 2008, the team had dissolved. But now, the watch business is booming with companies like Fossil and Movado Group Inc enjoying margins in excess of 55% That makes it a perfect time for Apple to show that it still knows a thing or two about innovation.

While an iWatch might sound like a great idea for Apple, there is a device that could offer competition even if it is not another watch. Google has Google Glass that will apparently hit the market by the end of this year although there is no indication that the two are mutually exclusive of each other.

source: Bloomberg

77 Comments
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posted on 04 Mar 2013, 10:40 7

1. sithvenger (banned) (Posts: 371; Member since: 25 Aug 2012)


I know I want one.

posted on 04 Mar 2013, 15:11 2

33. Mxyzptlk (Posts: 14191; Member since: 21 Apr 2012)


I just want them to shut up and take my money.

posted on 04 Mar 2013, 15:26 4

34. sithvenger (banned) (Posts: 371; Member since: 25 Aug 2012)


Exactly

posted on 04 Mar 2013, 15:49 2

37. PapaSmurf (Posts: 10457; Member since: 14 May 2012)


Why would I spend money on something that will probably cost over $100 when my phone already has all the capabilities?

posted on 04 Mar 2013, 16:37 3

44. Droiddoes (unregistered)


$100? New apple novelty? That doesn't add up. Expect it to launch at $199 MINIMUM.

posted on 04 Mar 2013, 10:44 14

2. _Bone_ (Posts: 2155; Member since: 29 Oct 2012)


This news released at this moment is mere damage control after Friday's reduced verdict, Apple stock is at another low at 423 as we speak.

posted on 04 Mar 2013, 11:02 7

6. technut (Posts: 71; Member since: 03 Aug 2012)


Exactly!

posted on 04 Mar 2013, 11:17 2

8. Ninetysix (Posts: 2460; Member since: 08 Oct 2012)


Who here owns apple stock? How does their stock affect us or me as a consumer exactly? Why do people keep on bringing up their stock?

posted on 04 Mar 2013, 16:23 3

42. BackHandLegend (Posts: 80; Member since: 15 Dec 2012)


To answer your third question, it is because Apple has a reputation of being this company of 'high prestige' for no reason other than a label. The fact that its stock prices are slowly but surely going down means that investors are losing their faith in the company (lack of innovation) and therefore are selling their stocks now to squeeze as much money out as they can. If Apple comes out with something good (which would be a first in a long time) investors would jump at the chance and buy stocks which would increase their value. At the moment Apple is stalling, releasing the same product over and over (4, 4S, 5... 5S?) with no design change and rather wants to sue the competition because it is cheaper than to be creative and invent.

posted on 05 Mar 2013, 02:45

71. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)


no reason other than a label? please..

how about record profits and creating the smartphone and tablet market sectors… they have amazing profits and drive a huge part of the economy for one company… they were the single largest company in the world… that is not all because of a name

like apple or not they have high margins and produce fantastic figures.. i agree with your second part -- people have come to expect big things and will not settle for the practical value of apple stock even though it remains undervalued

posted on 05 Mar 2013, 21:56

76. BackHandLegend (Posts: 80; Member since: 15 Dec 2012)


Apple doesn't drive a huge part of the economy. In case you were wondering the stock market is an indicator of how the economy is doing. Why are Apple stock prices dropping yet the economy is getting better? I mean 90% of computer users are on windows, so OF COURSE it is because a label. It's the same as buying Starbucks's 3 dollar coffee compared to Mc. Donalds's 1 dollar cup.

Here's what Apple should do to get back in the race. (Coming from an Android/Windows/Linux User)

1. The most crucial. REDESIGN Both hardware and software for their handheld devices.

2. Use better motherboards for their macbook and iMac lineup. (They currently use the worst of the worst)

3. Lower their prices. OPTIMIZATION IS KEY TO SELLING AND PROFITS. (If you don't know what it is, take calculous.

It is ridiculous that Apple is a tech giant, yet they fall for their own stupidity. 1500 for a laptop with a mid sized screen in which I can just buy a substitute of equal specs, equal performance, at 2/3 less the cost.

Another thing that would make Apple relevant in the world of computers again, would be to make their OSX Mountain Lion available for all hardware not just locked hardware. MacOS is the most beautiful OS in existence, why isn't it free of its hardware limited shackles?

posted on 05 Mar 2013, 19:05

75. jroc74 (Posts: 6015; Member since: 30 Dec 2010)


Well....not too long ago....some Apple fans felt the need to gloat when Apple hit $700 a share....and at the same time try to diss Google..

Not even knowing that Google hit the number about 2 weeks before Apple. And was the 2nd time since Google became a company that it did.

Trust and believe...if it gets back up to $700....we will see a different comment section than what we see today.

posted on 04 Mar 2013, 11:30 2

12. Aeires (unregistered)


My thought was Chen holds a lot of AAPL.

posted on 04 Mar 2013, 12:28 1

19. Hemlocke (unregistered)


Yes, damage control, even in the face of today's announcement that the iPhone 5 is still the best-selling phone in the U.S. and the world through the end of February. They have to be crying in Cupertino over that.

posted on 04 Mar 2013, 13:41 13

26. Droiddoes (unregistered)


You misspelled 'Galaxy S3'

posted on 04 Mar 2013, 10:44 4

3. Muzhhur (Posts: 260; Member since: 14 Sep 2012)


right now I dont like it, could be the ipod nano-watch.

We will see

posted on 04 Mar 2013, 10:45 2

4. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)


PhoneArena.com skipped news about Apple's shoe-life sensor patent. :)

posted on 04 Mar 2013, 10:58 11

5. technut (Posts: 71; Member since: 03 Aug 2012)


I can see Google Glass being a 6 billion dollar business.. but a watch... nah

posted on 04 Mar 2013, 11:03 5

7. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)


It's called marketing propaganda. :)

posted on 04 Mar 2013, 14:00 4

31. Reluctant_Human (Posts: 889; Member since: 28 Jun 2012)


Its possible if its priced right but that doesn't tend to be Apples way of doing things.

posted on 04 Mar 2013, 16:39 4

45. Droiddoes (unregistered)


Yup. I also expect Timex, Casio, Rolex, Swiss, etc etc to be sued over "patent infringement" any day now.

posted on 04 Mar 2013, 17:17

50. sithvenger (banned) (Posts: 371; Member since: 25 Aug 2012)


Awwwwwwwww shut up

posted on 04 Mar 2013, 18:17 3

53. Droiddoes (unregistered)


To take a line from your oh-so-mature toybox of witicisms: make me.

posted on 04 Mar 2013, 17:50 4

52. _PHug_ (Posts: 444; Member since: 11 Oct 2011)


Classic.
+1 for you sir

posted on 04 Mar 2013, 11:18 3

9. steviewonders (Posts: 20; Member since: 03 Nov 2009)


Hopefully someone else will bring one out first so Apple can't sue everyone who brings out a similar product. Having said that, smart watches aren't entirely a new idea. Sony and pebble have already done something similar. Probably won't stop Apple trying to sue everyone though.

posted on 04 Mar 2013, 11:21 4

10. bojan (Posts: 188; Member since: 06 Oct 2012)


who still uses a watch only people 50 years old and up no thanks i don't want one i hate wearing a watch.

posted on 04 Mar 2013, 11:32

13. ibap (Posts: 765; Member since: 09 Sep 2009)


People who care about language and don't use the excuse of typing on glass to look like 10-year-olds or e. e. cummings.

posted on 04 Mar 2013, 11:34 2

14. PhoneArenaUser (Posts: 5498; Member since: 05 Aug 2011)


Disagree.

posted on 04 Mar 2013, 11:29 6

11. ibap (Posts: 765; Member since: 09 Sep 2009)


Apple will claim they always knew people wanted a watch. Like the iPad mini.

posted on 04 Mar 2013, 11:52 5

15. weinerslav (Posts: 126; Member since: 31 Jul 2012)


I love how they say "create something totally new like they did with the iPod -- something consumers didn’t even know they needed."

Take that creative, Diamond/rio, archos, cowon and all the other that made mp3 players before the ipod! Basically they could put dog poo in a box that they would be creating something totally new, something consumers didn't even know they needed!

Seriously, how do you expect people to stop complaining about apple with manipulative (and fake) statements like that?

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