It is not unusual for analysts to issue unbelievable proclamations about anything under the sun from the stock market to Apple, but this one is the best. According to Global Equities Research Managing Director, Trip Chowdhry, Apple is on a ticking time bomb and has only 60 days left to announce some sort of an iWatch “or they will disappear.”
Of course, one thinks that he meant the company will lose their innovative edge to rivals, particularly Samsung Group. However, Chowdhry, did not stop there. “It will take years for Apple’s $130 billion in cash to vanish, but it will become an irrelevant company … it will become a zombie, if they don’t come up with an iWatch,” he said to CNBC.
While Chowdhry’s view of Apple being on a ticking time bomb of 60 days may be considered as an extreme, analysts say that it is not far off the mark and the firm will need to announce an iWatch soon.
A senior tech analyst at Evercore Partners, Rob Cihra said the company has significant pressure on it to come up with a wearable gadget as the market is becoming crowded. Cira said consumer favorite companies like FitBit and Jawbone added to the pressure of Apple. He said that these firms are already making wearable gadgets and building an ecosystem around them. He said that “Apple should certainly want to play in that.”
However, while there are speculations that Apple will undoubtedly come up with its version of an iWatch, the firm has remained quiet on this subject and until a smartwatch is announced officially, the device remains hypothetical.
Meanwhile, Samsung has announced further details to its new Gear 2 smartwatch and Gear Fit wristband tracker. The firm said the Gear 2 is a second-generation smartwatch, along with features like a music player, heart-rate monitor and an infrared emitter that could be used to control a TV.
“Everyone is expecting Apple to come out with something this year. For one thing, it seems like a natural extension of the iOS ecosystem. It’s not a big stretch to think that it’s something they should be tapping into,” said Cihra. “Wearables need innovation and creativity and some direction, and people look to Apple to do that sort of thing,” Cihra added.
The two analysts predicted Apple’s smartwatch should be between the price ranges of $670 to $800.
Kantar WorldPanel’s chief of research, Carolina Milanesi, also said the pressure is mounting, but Apple is not a firm, which “rush things, especially when its part of the bigger picture.”
The analysts said that it has been the firm’s practice to enter late into the market and part of their secret to success was this. For example, Apple has been known to enter the MP3 player, smartphone and tablet markets years after numerous other companies.
However, even Milanesi said that Apple cannot take forever to come up with their version of a wearable gadget. She said that if the firm missed the market this, they would have to come up with something extraordinary in 2015.
Cihra said the reason behind the high anticipation was because “there is a real hope that Apple is going to show us the way.” He said it was expected of the firm that they will outperform FitBit or Jawbone in their presentation of the wearable space.
He said that he was not sure if Apple has ever been the first in the market as they often go into a market “after somebody has already started in it.” However, he added, that Apple should not wait too long [before entering the market of smartwatches].
By Faryal Najeeb