JP Morgan analyst sees 26 million Apple Watches sold this year; raises target of Apple stock to $145

JP Morgan analyst sees 26 million Apple Watches sold this year; raises target of Apple stock to $145
As we get closer to the expected April launch of the Apple Watch, it is beginning to dawn on Wall Street and Main Street alike just how big of a deal the timepiece truly is. JP Morgan analyst Rod Hall whipped out his trusty abacus and calculated that despite the late start to the year, Apple will sell 26.3 million timepieces this year.

Hall's computations are based on the fact that Apple Watch users will need to pair the device with an Apple iPhone 5 or higher. The analyst says that just before the Watch launches in April, there will be 400 million potential Apple Watch customers based on the active number of Apple iPhone 5, Apple iPhone 5s, Apple iPhone 5c, Apple iPhone 6 and Apple iPhone 6 Plus units outstanding. The analyst sees 5% of  those owning a compatible iPhone to be sporting the Apple Watch on their wrist before the end of the year.

Hall calculates that the lower priced Sport model will account for 95% of sales which would give Apple a margin of 39% for the wearable device. If the stainless steel version becomes the most popular, Hall says he would have to revise his margin forecast higher. Because of the expected strong demand for the Apple Watch, Hall raised his projected 2015 earnings per share figure figure for Apple by 2.4% to $9.21 a share.

Next year, Hall sees the Apple Watch on the wrist of 13% of compatible iPhone owners by the end of 2016. He expects Apple's earnings per share figure to rise 10.4% to $10.50 a share. At $123.96 currently, Apple's shares are at an all-time high as the company has the highest valuation in global stock market history. Hall has raised his target for Apple's shares by $5 to $145.

 Based on Monday's closing price of $122.02, Apple's market cap of $710.7 billion makes it the first company on the planet to have a value in excess of $700 billion. The closest company to Apple is oil giant Exxon, which is valued at $385 billion.

source: AppleInsider

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71 Comments

1. TimCook

Posts: 450; Member since: Oct 23, 2014

This Watch is the best... The software is years ahead of everything out there..

2. RebelwithoutaClue

Posts: 5465; Member since: Apr 05, 2013

lol you're one funny dude

10. nctx77

Posts: 2540; Member since: Sep 03, 2013

He's right. Android wear is just not customizable. It looks the same on all watches. Bet you didn't expect that lol!

14. RebelwithoutaClue

Posts: 5465; Member since: Apr 05, 2013

Actually it is, at least the watchfaces. And I know it looks the same, they going for an uniform look on the watches. But what does it have to do with Apple's software being years ahead. Customization on the watch? lol

20. TimCook

Posts: 450; Member since: Oct 23, 2014

I am talking about performance, app quality, user interface, precision and functionality...

22. RebelwithoutaClue

Posts: 5465; Member since: Apr 05, 2013

You can't say anything about performance yet, nor app quality.User interface is highly subjective, from what I have seen I think it's ugly and crap. Functionality lol almost every thing it does, other smartwatches do too. Ok perhaps not sending doodles and your heartbeat, whoopdiedoo.

25. TimCook

Posts: 450; Member since: Oct 23, 2014

Yes I can, Obviously I know something you don't.

28. RebelwithoutaClue

Posts: 5465; Member since: Apr 05, 2013

Sure honey, whatever rocks your boat...

64. InspectorGadget80 unregistered

Don't bother trying to give a speech to iTimCook he's just another blind iSshp just like all the rest.

83. Mxyzptlk unregistered

Lol how can you hate this guy and his extremely broken English?

31. sgodsell

Posts: 6588; Member since: Mar 16, 2013

God you are full of crap. Performance of Android Wear is really great. User interface. If you think a dial wheel makes things better on your watch, think again. Most people want to look at the watch, and touch the screen once in a while, use your voice to perform some actions or searches. Android Wear does that in spades already. Precision, how? As far as functionality that is debatable. Android Wear gives you the ability to install standalone apps on its watches, whereas Apples watch currently does not give you this ability. You have to create an iPhone or iPad app that will also add watch functionality. Android wear already does this as well.

68. engineer-1701d unregistered

hell i even have the chrome wear mini app i go browse the internet on the screen hahahaha dont do it any more but it was fun i still have the app on it. plus music for download into the 4gb for music on the go without the phone.

67. engineer-1701d unregistered

well your wronge again tim performance basic app quality they will pay higher for app dev but most will not be used on the tiny low res screen, user interface is the worst ever in history all apps on one page having to use a crown to zoom in move screen with finger and zoom in again or with my android wear i just say ok google open ______ app. precision moto360 zen functionality all android wear watches and even tizen

84. FlyingDutch

Posts: 97; Member since: Jan 30, 2015

No doubt. Just a week after the launch, Apple will have sold more watches than all Android OEMs together whole the time.

17. sgodsell

Posts: 6588; Member since: Mar 16, 2013

Its a watch. Oh, and you can customize Android Wear quite a bit. In fact you can install launchers on Android Wear. Not to mention the thousands of different watch faces. I guess you wouldn't know since you don't have an Android Wear watch. Also Android Wear has a leg up on Apples Watch. Android Wear gives you the ability to inject Android Wear code into existing Android phone or tablet apps. Basically what Apple is going to be doing with their Apple Watches. However Android Wear also gives you the ability to write standalone Android Wear apps as well. Something not currently offered by Apples watches.

88. FrenchGuy

Posts: 134; Member since: Dec 12, 2014

Damn, you don't give a fu*k about nonexistent iphone customisation when android fanboys destroy you ! But for the Apple watch , customisaton is the best thing ever made ????? WTF!!!

63. InspectorGadget80 unregistered

iTimCook iJPMORGAN. iAnalyst.

5. Sakeem

Posts: 853; Member since: Sep 05, 2012

Any update on the test iwatches you have been using? Any specifics you care to share?

8. TimCook

Posts: 450; Member since: Oct 23, 2014

Hey how do you know I have test units? Where did you get this information? Please reply..

13. sip1995

Posts: 1771; Member since: Feb 07, 2014

You're Tim Cook....

24. TimCook

Posts: 450; Member since: Oct 23, 2014

Tim Cook is a group of people not just one person..

18. Sakeem

Posts: 853; Member since: Sep 05, 2012

21. TimCook

Posts: 450; Member since: Oct 23, 2014

It's been a mistake by my part, I will have Phonearena delete comments 15 and 31..,

27. Sakeem

Posts: 853; Member since: Sep 05, 2012

A mistake???? As in a typo of some sorts? See......when you lie, or are used to lying, you have to keep telling lies to support the very first lie you stated. You just got caught and not that anyone did before, except maybe the other Apple defenders, enthusiasts, etc....we all know who they are, nothing you say will ever be taken serious again.

40. TimCook

Posts: 450; Member since: Oct 23, 2014

A mistake for mentioning I have test units... It can cost me my job for giving such classified information...

41. Sakeem

Posts: 853; Member since: Sep 05, 2012

Sure. Who in their right mind would make such a "mistake?" Twice in the same thread too.....Hilarious.

65. InspectorGadget80 unregistered

He's one sick poor lil iFan.

32. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Sure you aren't Brian Williams? Time for a new account huh.

38. TBomb

Posts: 938; Member since: Dec 28, 2012

I believe the quote Sakeem is thinking of is: "If you tell the truth, it becomes a part of your past. If you lie it becomes a part of your future."

42. Sakeem

Posts: 853; Member since: Sep 05, 2012

Yeah that's a good one TBomb. Some people, especially on this site i notice, live theirs lives through others. Meaning fake pictures, fake jobs, social status, etc etc. I guess it makes for good humor though.

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