Got a good laugh when this guy said that he believes apple will sell up to 1,000,000 gold apple watches every quarter? 1,000,000 at $4000-$5000 a piece, who are the idiots paying for something so ridiculous? This watch market is being hyped all over again, I know a few people who wear these tech watches but I still don't understand the idea behind them, are they that lazy to use their phone to text and see who is calling them when their phone is within reach of them 99.9% of the time!!!! To think apple is going to sell 1,000,000 of these gold watches every quarter? HAHA, they will be lucky to sell over 100,000 of them!
The crazy-expensive gold Apple Watch could make $5 billion per quarter
- by
- Ben Geier
FEBRUARY 18, 2015, 9:28 AM EST
Breaking down the numbers
News flash: Apple products are expensive, and Apple makes a ton of money every quarter because of it. The high-end version of its upcoming Apple Watch, though, could set a new record in terms of cost — and bring in truly boffo revenues.
Watch more of the latest news about Apple from Fortune’s video team:
Apple AAPL 0.06% is planning on ordering more than 5 million units of the Apple Watch for its initial run in total, according to a Wall Street Journal report Tuesday. Half of those will be the most basic model, which are expected to sell for $350. A third of the initial run will be the as-of-yet unpriced mid-tier model.
As longtime Apple watcher Jon Gruber points out, that leaves around 17% of the the initial production run to be the high-end “Edition” model, which will be cased in 18-karat gold. The Edition model doesn’t have a set price yet, but it’s expected to go for more than the $4,000 Mac Pro, making it among the most expensive Apple products ever.
Gruber notes that 17% of a figure between 5 million and 6 million translates to between 850,000 and 1 million units. If the price comes in at $5,000 per Apple Watch, and Apple sells 1 million per quarter, that means Apple can pencil in $5 billion in revenue on sales of the high-end Watch.
Of course, the price could be even higher, meaning that could be the low end of potential gains from the Edition Watch.
Photograph by Justin Sullivan — Getty Images
Im amazed by the amount of watches they predict apple will sell this year, 22,000,000? 33,000,000 next year. I never knew so many people wore watches, sounds like they will sell more watches in 1 year than any other company who has already produced these new tech watches over the last 2 years!
How many moto 360s were sold since being introduced? How many Pebbles? how many Samsung gear watches?
I found this in an article....
All in all, Canalys believes “nearly 5 million smart and basic wearable bands shipped in Q3 2014” worldwide. That results in a 1.66 mil monthly average for July, August and September.....
Think about that, 5 million shipped world wide in one quarter.....and they think apple will do 5,000,000 alone in one single quarter, there is a lot of hype coming out of apple and this watch, it better be big because if it isn't these tech watches will just be a fad!
Read more: http://vr-zone.com/articles/wearabl...s-motorolas-moto-360/83909.html#ixzz3SETALBct
Wall Street has relatively modest expectations for the upcoming Apple (AAPL) watch, but the company may be aiming for a much greater immediate impact.
I’ve been tracking Wall Street analyst forecasts for the watch, which will go on sale in April. Apple has said only that it will offer models at three main price points, but of the prices, it has disclosed just that the low-end watch will self for $350. Analysts have had to make numerous assumptions to fill in the blanks and forecast how much impact watch sales will have on Apple’s finances.
On average, analysts expect Apple will sell 22 million watches this year and 33 million next year, according to the 17 reports I have cataloged. With an expected average selling price of $450, most analysts are predicting that sales of the low-end model will dominate. (The average price is a weighted average based on proportion of sales.)
With those assumptions, Apple could generate almost $10 billion of new revenue this year and $17 billion next year. That’s a huge amount of sales for most companies, but Apple had revenue of $200 billion last year generating net income of $44 billion.
This week, the Wall Street Journal reported that Apple had ordered manufacturers to build 5 million to 6 million watches ahead of the April debut.
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The breakdown, according to the Journal’s sources, was said to be 50% of the low-end model, 33% at the middle tier and 17% of the highest-priced, 18-karat gold edition. The gold watch will sell for more than the $4,000 cost of Apple’s most expensive Mac computer, according to the report.
If consumers go along with Apple’s reported watch mix, and one in six opt for the gold model, the average selling price will be much higher. Assuming $500 for the midrange model and $5,000 for the gold watch, the average selling price comes out to almost $1,200.
Start modeling those assumptions and pretty soon Carl Icahn’s Apple target of $216 looks a lot more reasonable. New revenue could total $25 billion this year and $40 billion in 2016.
To be sure, even if the Journal is correct, consumers may not be as enamored with the watch as Apple expects. There is no precedent for selling a luxury gadget at $5,000, especially one that may become outmoded every year or two. And the first-generation Apple watch will have limited battery life and require an iPhone for many functions.
Even after sales commence, analysts may still be left making assumptions. Apple said last year that it won't break out watch sales in its results as it does for sales of the iPhone, iPad and Mac computers. Instead, revenue from the new gadget will be lumped in a grab-bag category that will also include sales of iPods and Apple TV boxes.
But with more chatter about the watch, expectations are already rising. Apple shares hit an all-time high of $129.03 on Thursday and have gained 17% so far this year even as the overall market has done little. Further big gains may depend on the popularity of a $5,000 gold watch.
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