Investment firm, UBS, believes that the upcoming “iWatch” from Apple is expected to become a best-selling device with consumers, reaching sales similar to the iPad. UBS said in the note to the investors that Apple could sell 21 million smartwatches in the first year alone, and 36 million iWatch units in the second year.They have predicted the price tag of $300 for the anticipated wearable device.Overall, the iWatch is expected to give substantial growth to the shares of Apple.
“We are more confident that Apple will be introducing the iWatch before the holiday season following WWDC’s introduction of HealthKit, recent healthcare hirings, the acquisition of LuxVue Technology, and optimistic comments from Eddy Cue at the Re/Code Conference,” UBS analyst Steven Milunovich wrote in the note, which was picked up by AppleInsider.
UBS also reported that the iWatch will add $6.5 billion in revenue to Apple’s bottom line in 2015, and $11 billion in 2016. The firm concluded that the iWatch will sell better units than the iPad.
“We expect iWatch sales to roughly track iPad unit sales — similar penetration rates would mean higher sales,” he said. “iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less. On the other hand, iWatch is the first product to be worn, which might not appeal to all users.”
Cupertino-based tech company is falling under pressure to come up with a wearable device that would either match or overpower what competitors are offering. As WWDC 2014 is approaching soon, Apple has already placed much investment in health monitoring functions by incorporating such features in the recent iOS 8 software update.
The iOS 8 unveiling might have coincided with iWatch development, which uses the health functions similar to what was mentioned earlier. At this time, iWatch actual specs — if there are any — remains sparse. Even so, more information may be available in the following months leading up to the iWatch’s eventual inauguration sometime later this year.