Munster: expect 5 million to 10 million Apple iWatches to be sold in year one

Munster: expect 5 million to 10 million Apple iWatches to be sold in year one
Piper Jaffray's analyst covering Apple is Gene Munster and if you are a loyal PhoneArena reader, you've seen his name on the site quite often. Mr. Munster (we wouldn't call him Gene unless he specifically said it was ok) has now turned his attention to Apple's smartwatch expected next year. Ever since it became known that Apple was working on a connected timepiece, the name iWatch was attached to the project and has seemed to stick. Apple filed for iWatch trademarks throughout the world, further strengthening the idea that this will be the name of the product.

Gene The analyst has snatched up his trusty abacus and has computed that Apple will sell 5 million to 10 million units of the Apple iWatch during the product's initial year on the market. For those more impressed with dollars and cents, we're talking about $2.6 billion revenue and $790 million in profit.

Munster just conducted a survey of 799 people (couldn't he find just one more?) and asked if they would pay $350 for an iWatch that paired with an Apple iPhone. Of those with an iPhone, 12% said "ring me up" while the remaining 88% politely declined. With that in mind, Munster conservatively figured that 2% to 4% of the installed base of iPhone users would buy the iWatch during its first year on the market

Piper Jaffrey's estimate of 239 million iPhone owners led to the estimate by Munster, and at $350 a pop, he computed the sales and revenue. One thing to consider. If Munster's forecast is accurate and the iWatch brings in $2.6 billion in revenue and earns $790 million, that would represent just 1% of Apple's annual sales and profits.

source: PCMag

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20 Comments

1. Yubnub

Posts: 100; Member since: May 23, 2013

I don't think so...

11. appleDOESNT.com

Posts: 456; Member since: Nov 19, 2011

iDo, iFollowers make up about 40 million individuals of the 700mllion iOS devices (just reported recently) out there. iWrecken the average iFollower has about 4 total iPads, 5 iPhones, 5 iPods, 2 appletvs and 1 iWatch coming up. Apple's whole market share is the same iFollowers that buy iDevice after iDevice, year after year lol. So ya, they will easily sell 5 million iWatches to their kind, no FLiPPiN doubt!i!

16. InspectorGadget80 unregistered

number to high. think those analyst are over exaggerated with numbers. plus the thing haven't even been out. only smart watches been out is SONY SMART WATCH 1 now 2. now SAMSUNG. Lg needs to remake their first SMART WATCH phone few years ago and redesign it.

17. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Yea, I think this guy is desperate to get Apple's stock back to where he bought it. These fackin smartwatches seem so uninspired and reactionary. It seems to be just a money making tactic, not something that someone actually thought would be great. And it only started when rumors of Apple making a smart watch started. Can't wait until this garbage flops and some real innovation happens somewhere.

2. psycc

Posts: 12; Member since: Dec 08, 2010

The name Apple Time would be better

3. parvsingh05

Posts: 100; Member since: Jan 11, 2012

Wait for another one year.. But just do it right.

4. Stayfly2407

Posts: 76; Member since: Dec 15, 2011

If they can integrate facetime in the watch, that would be nice. But I'll stick with my G.gear and note3 combo.

6. noodles914

Posts: 4; Member since: Oct 08, 2013

Gene, put the crack pipe down!

7. DaNTRoN

Posts: 135; Member since: Jul 23, 2012

I wish my job involved analytics and guesstimations, where the margin of error was millions or tens of millions. What an easy gig.

8. darkkjedii

Posts: 30784; Member since: Feb 05, 2011

I'll be buying a couple.

9. bucky

Posts: 3771; Member since: Sep 30, 2009

Meh, not really seeing the point in these watches yet. A lovely baume and mercier watch is still going to sit on my wrist :D

15. PotDragon

Posts: 214; Member since: Jul 22, 2011

Nice! Which model Baume & Mercier? I really dig the company polices they exhibit; as an animal lover I really appreciate the financial support they give toward ending animal abuse. Just snagged a 1977 Rolex Oysterquartz with plum face off the vintage matket . There's the point...what watch geek is gonna drop $350 on this ugly crap? That is assuming it works of course, and that it creates some type of new "must have" app. Anyone want to try and read texts off their wrist in bright sunlight off a postage stamp?

19. boosook

Posts: 1442; Member since: Nov 19, 2012

Baume and what??

10. lauremar

Posts: 181; Member since: Feb 29, 2012

How can you expect something to sell that does not exist?!!! Gimme a break!

14. GrapeEyes

Posts: 248; Member since: Sep 01, 2013

Apple can't even get iOS7 right, let alone build a new iwatch that will only cost them $24 to build from scratch.

18. boosook

Posts: 1442; Member since: Nov 19, 2012

Expect 5 to 10 million iWatches to be ignored as soon as Google Glass will be released! ;)

* Some comments have been hidden, because they don't meet the discussions rules.

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