Apple Watch Will Help Bring in More Than a Billion Dollars This Year

Apple

Apple Inc. will begin selling the Apple Watch later this month, and the projected sales for the first week are one million units. That is three times the opening sales of their last new product, the iPad. The Apple Watch is selling for $350 for the plastic banded sport model. There has been backlash against the company for the price of the watch, but the estimated sales do not agree with the backlash. The amount of people with an iPhone will more than cover the sales for the Apple Watch, according to market experts.

Jason Perlow, a writer for ZDNet, thinks that the sales of smart phone accessories like the Apple Watch should not cost more than $50. He thinks the technology of the watches should be made cheaper in order to appeal to a broader customer base. The 14k gold version, called the Apple Watch Edition, will cost up to $10,000. Thus, price does not seem to be an issue when it comes to Apple products. The sales for their other products are all on the rise as well, except for the iPad.

The projected sales for the first 24 hours of the introduction of the watch are as high as 300,000 units. This is good news for the company that has had success recently with the iPhone 6 and iPhone 6 Plus, with sales are still rising. Some retailers are still selling out of the models regularly, and perhaps even more often six months after their launch than they were in the beginning of the push of the models. Some experts believe the Apple watch will be so popular, it will easily surpass one billion dollars in sales, leading to stores running out of the product.

The market experts are expecting Apple Inc. to surpass consensus estimates and will top out this year with over one billion dollars in unit sales for all of their products. On April 27, 2015, Apple Inc. will release their quarterly report and the experts are looking for a major boost in sales for this quarter. A large boost for the company is also its projected sales in apps. The watch is estimated by JP Morgan Chase to bring in another 26 million units over the course of 2015. The majority of sales are projected to come from the Apple Watch Sport model, which starts at $349, and then a close second, the stainless steel watch that starts at $549.

The numbers for the watch will be reported in the slot for other products, such as the iPad and other accessories. This is a different way to handle the report of the sales, as opposed to the way the company separated out the sales of the iPad and iPhone during their introduction. Smart watches accounted for $1.3 billion in revenue in 2014, and that number is estimated to jump to $8.7 billion with the introduction of the new product after the projected one billion dollar in sales.

Customers will be able to pre-order the watch starting April 10, 2015. The flagship stores will carry models of the watch for customers to try on in Paris, Tokyo and London.  The watch will be sold in the U.S., U.K., France, Germany, China, Japan, Canada and Australia.  The official release is April 24, 2015.

By Deneishia Jacobpito

Sources:

International Business Times

ZD Net

The Motley Fool

Photo by Jay Rogers – Flickr License

 

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