There is no shortage of iWatch rumors. Time and time again we have heard that Apple is developing a smartwatch, while there has been no confirmation of the device or the moniker from Apple, it is widely known as the iWatch. Previously it was rumored that the smartwatch will release in 2013, but recent reports suggest that the launch might not take place until 2014. Many predictions have been made about the iWatch’s market performance once it launches, the most recent one comes from Piper Jaffray analyst Gene Munster. Based on the survey conducted by the investment firm, Munster believes that Apple might end up selling 5 to 10 million iWatch units in the initial launch year alone.
Piper Jaffray surveyed 799 U.S. consumers, they were asked if they would purchase an Apple smartwatch for $350. Only 12 percent said that they would, 88 percent didn’t seem to be too keen on paying $350 for an iWatch. The percentage is likely to drop if we look at prospective demand for the iWatch from a global scale. Munster is of the view that 2 to 4 percent of the estimated 293 million iPhone owners around the globe are likely to purchase the smartwatch during its initial launch year. This would amount to 5 or 10 million units being moved, with an assumed midpoint of 7.5 million units, the rise in Apple’s revenue and gross profits would be just 1 percent each. If these numbers hold true once the smartwatch actually comes out, its not like it will start bringing in an insane amount of revenue or gross profit for the company. Nonetheless, it would strengthen Apple’s publicly presumed ability to churn out innovative products every few years. It remains to be seen exactly how innovative the iWatch will be, which is not expected to be released before 2014.