The Apple Watch is said to enter mass production in January and is pegged for a possible release around Valentine’s Day in 2015. The device is one that is highly-anticipated, despite the fact that there have been several smartwatches released into the market ahead of the Apple Watch, but given that it is Apple, the hype is understandable.
That being said, Piper Jaffray analyst Gene Munster recently advised in a note to his clients that they should expect conservative sales of the Apple Watch during its first year. He claims that “consumer application may be limited initially, until developers begin to create useful applications for the watch.” This is similar to the iPod which took a couple of years before it became the icon that it did.
Munster goes on to add that he predicts Apple will go ahead and sell 10 million units of the Apple Watch during its first year and is expecting an average price of $500. Apple has yet to formally announce the price of all its models, only stating that it will begin at $350, although there are rumors that the Apple Watch Edition could retail for as much as $5,000, although that is admittedly a tad absurd.
It is also interesting that Munster has predicted 10 million, especially given that current industry estimates have put it around 3 million smartwatches sold in total, meaning that if his predictions come true, Apple will be dominating the smartwatch market much like they did with the tablet market with the iPad, but what do you guys think?