Analyst Believes Brand Loyalty And Ecosystem Will Drive iWatch Sales

Even though it has been over a year since we have been hearing about Apple’s elusive iWatch smartwatch we have yet to actually see the wearable device. The company itself has dropped no hints of its wearable plans and no dummy units of panels of the iWatch have been leaked online as yet. Still the rumor mill and analysts alike are certain that the iWatch is hitting the market this year. Morgan Stanley analyst Katey Huberty believes that Apple may sell as 30-60 million iWatches in the first year primarily due to the customers’ brand loyalty and Apple’s ecosystem.

Huberty charts out two scenarios that follow the iWatch launch. The smartwatch takes the iPhone adoption trajectory and Apple sells 40 million units in the first year after launch at $300 a pop. This would bring in an additional $9 billion in revenue for the company. The second scenario is that it takes the iPad’s trajectory and Apple ends up selling 60 million units in the first year.

Apple has a tightly integrated ecosystem whereby its mobile devices like tablets and smartphones work with its desktop computers as well as software and services in complete harmony. The ecosystem gets even stronger when OS X Yosemite and iOS 8 are released to the public as they come with features that make hopping between Apple devices seamless.

An iWatch would work as a natural extension of that ecosystem. Time and again Apple has proved that it has loyal customers and its more than likely that these customers will at least be intrigued in one of the truly new products that Apple has launched in years. The iWatch is expected to hit the market this fall.

Adnan Farooqui
Categories: Apple, Gadgets
Tags: Apple Watch, Smartwatches, Wearable Tech