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2013 'iWatch' debut could rake in more profit than an Apple television set

post #1 of 65
Thread Starter 
The current wristwatch market has much higher gross margins than HDTV sales, which could set the stage for Apple to sell its own hugely profitable wearable hardware as soon as this year.

Citing Citigroup analyst Oliver Chen, Bloomberg reported on Monday that the current gross margins on watch hardware is about 60 percent ? a number four times bigger than the margins on televisions. He views it as a $6 billion opportunity for Apple with "plenty of opportunity for upside."

iWatch
Artist's rendition of purported Apple smartwatch. | Source: Yrving Torrealba


In fact, Chen believes that if Apple took just a 10 percent share of the watch market, it could earn gross profit of $3.6 billion. A 10 percent share of the PC market, however, would result in just $1.79 billion in gross profits, based on Chen's estimates.

Monday's report also made note that Apple's chief designer Jony Ive has had interest in watches for some time. He owns many high-end models, his team has visited watch factories, and the company also reportedly ordered a number of Nike sport watches in the mid-2000s.

Citing an anonymous source, the report indicated that Apple could launch its own wristwatch as soon as this year. Features said to be under consideration are making calls, viewing caller ID, checking maps, a built-in pedometer, and biometric feedback for information such as heart rate.

Bloomberg first reported last month that Apple allegedly has a 100-person team working on an unannounced smartwatch product. The team reportedly includes marketing, software and hardware personnel who previously worked on the iPhone and iPad.



It's been speculated that that the sheer size of Apple's purported "iWatch" team is a sign that the company's plans for wearable computing have gone beyond the experimentation phase and are set to become an actual commercial product.

Reports of an Apple watch picked up steam last month when The New York Times said Apple was experimenting with a "wristwatch-like devices made of curved glass" that run iOS and can perform minor smartphone operations.

Apple may be planning to enter the wristwatch space as a number of products have begun to hit the market and generate buzz. The Pebble watch recently began shipping to consumers, while a consumer-oriented version of the MetaWatch has been shipping to customers since late last year. Both products rely on connectivity to a smartphone to deliver information like phone calls, text messages, weather and more.
post #2 of 65

I understand, but there is merit in "owning" the living room. Having an Apple logo on a large flat screen TV would do well for Apple to cement their eco-system. But not at the expense of low profit margins.

 

The media/cable companies do seem too entrenched to allow Apple to get any type of foothold. Drats! :)

post #3 of 65
If apple Is to release iwatch , it will make google glass an idiot .
post #4 of 65
I prefer a watch over glases any day... Apple just needs to make a cool desing that would atract all tipes of buyers..
post #5 of 65

If Apple releases a watch...then hell will be frozen over. 

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post #6 of 65
As soon as there was public interest shown in this idea (be the rumors of Apple developing it true or not) the clones went to work. Scamsung and / or Google will have one available very soon so I don't see how Apple can see this as another major category.

BTW: If it were a true rumor, I doubt Apple would use the same slider from an iOS device on a device like this! I am pretty sure there would be a new design / concept involved.
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post #7 of 65
I'm sure it would.
I would use a watch like that. But it would have to be truly groundbreaking and sport some functions we haven't thought of.
If there's one company capable of nailing it, it's Apple. I hope they take the time to 'just make it work'.

Siri is great but is still light-years from being that super-quasi-AI that we need. And they really need to do something about her voice, Google now sounds a lot better.

And a watch is better than glasses. Google says that people spend too much time looking at their phones but they put a glass on their head instead. I doubt that people wearing an iwatch will spend all their time looking at it, because that would be impractical, and that's good. It will be used for straightforward queries. In conjunction with an iPad Mini for more serious work, reading and web-browsing, it will be HUGE. iPhones might become less and less present.

iwatch + iPad Mini > iPhone
Edited by ClemyNX - 3/4/13 at 5:46am
post #8 of 65

It wouldn't surprise me a call if Apple is working on something like this. And i don't think its a dumb idea.  In fact I'd take this over Google's glasses even if its more practical and functional and not as "cool".  I wonder if Apple would go down the sport route or something more high end?

 

I do wonder though who is leaking to Bloomberg. Is it Apple themselves or some "analyst" making shit up to try and goose the stock price?

post #9 of 65
Poppycock.

the assumptions he makes are ridiculous. Not the least of which that Apple would be making a "watch" to compete with the likes of Rolex et al.

The margins are great on watches because "watches" are jewelry with nothing inside worth more than a nickel in parts.
post #10 of 65
Quote:
Originally Posted by christopher126 View Post

I understand, but there is merit in "owning" the living room. Having an Apple logo on a large flat screen TV would do well for Apple to cement their eco-system. But not at the expense of low profit margins.

The media/cable companies do seem too entrenched to allow Apple to get any type of foothold. Drats! 1smile.gif

I'd argue that between the iPod, iPhone, iPad, and Mac notebooks Apple already owns the living room. What they don't own is the HEC (home entertainment system) within the living room.

Quote:
Originally Posted by crazy_mac_lover View Post

If apple Is to release iwatch , it will make google glass an idiot .

I think that is happening regardless.

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post #11 of 65

As an avid cyclist, I would love to have an iWatch that would work with my Strava app so I could see my speed, cadence and heart rate at a glance. I have avoided mounting my iPhone on the handlebar because it's just too big and I don't want to ruin it if I get caught in the rain. An iWatch would allow me to take calls without having to pull the phone out of the back pocket of the jersey. If I could find a Bluetooth earpiece, a discreet looking one that goes inside the ear, and if the iWatch has a built-in mic, I could talk with my left hand while controlling the bike with my right hand. That would be awesome. I refuse to wear those bluetooth headset with the built-in mic. They're just too hokey for my fashion sense. 1cool.gif    

post #12 of 65
I'm betting the iWatch will be a collaboration with Nike. Because it's on your wrist it'll be able to measure your heartbeat and its the perfect place to see stats/take calls/etc whilst running.

Having a heartbeat sensor could be key to the iWatch, as it could be used by a market we know Apple is always interested in - health.
post #13 of 65
Quote:
Originally Posted by KDMeister View Post


I refuse to wear those bluetooth headset with the built-in mic. They're just too hokey for my fashion sense. 1cool.gif  
 

I know what you mean. Not many people give spare change to a bum with a bluetooth. 1oyvey.giflol.gif
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post #14 of 65
Quote:
Originally Posted by KDMeister View Post

As an avid cyclist, I would love to have an iWatch that would work with my Strava app so I could see my speed, cadence and heart rate at a glance.

That'd be awesome, could also take you to the nearest coffee shop too :-)
post #15 of 65

I'm not sure that I even want a watch of any kind and Google's glasses don't interest me.

 

Count me as one of those who don't think Apple even wants to get into the "TV Set" business. It's a crowded space with no one making much money. The quality of TVs today are very high. The sets are affordable. I see Apple taking over the TV's user interface with a full-featured Apple TV set-top box, but no actual TV itself. Then again I could be wrong...Just ask my ex-wife.

post #16 of 65
Quote:
Originally Posted by ollieollieollie View Post

Having a heartbeat sensor could be key to the iWatch, as it could be used by a market we know Apple is always interested in - health.


I know this isnt very 'Apple chic' but the placement on the wrist would mean it could also detect body temp and I'm guessing potentially chemicals via sweat because its next to skin?
post #17 of 65

I think that wearable computing will be the next big thing and it will take off even faster than the cellphone did (which itself was one of the fastest adopted technologies in history).

 

It will happen because people permanently plugged in to the Internet will simply be smarter than people who aren't. Imagine wearing your Google Glass, and it's microphone is picking up keywords from conversations around you and automatically Googling them in the corner of your eye. If you have an automatic encyclopaedia and other's don't, that's potentially a big advantage. It would sure make it hard for a salesman to pull one over on you, with all the facts and figures popping up in your glasses as they talk.

 

And people will discover if you say a certain word you get a funny search result, and everyone in the conversation that has Glass (or Apple's version) will be laughing together at this silly thing that just popped up, and people who aren't "connected" will feel left out. Pretty soon everyone will just have to have one.

post #18 of 65

My thoughts are simply that watches are just jewelry now... Cell and smartphones have made that happen. I would LOVE to be proven wrong (as an APPL long) but this sounds like a bad route to go down.

post #19 of 65
Quote:
Originally Posted by KDMeister View Post

As an avid cyclist, I would love to have an iWatch that would work with my Strava app so I could see my speed, cadence and heart rate at a glance. I have avoided mounting my iPhone on the handlebar because it's just too big and I don't want to ruin it if I get caught in the rain. An iWatch would allow me to take calls without having to pull the phone out of the back pocket of the jersey. If I could find a Bluetooth earpiece, a discreet looking one that goes inside the ear, and if the iWatch has a built-in mic, I could talk with my left hand while controlling the bike with my right hand. That would be awesome. I refuse to wear those bluetooth headset with the built-in mic. They're just too hokey for my fashion sense. 1cool.gif    

http://www.amazon.com/Garmin-Computer-Monitor-Cadence-Sensor/dp/B00APBMNP4/ref=sr_1_2?s=gps&ie=UTF8&qid=1362407493&sr=1-2

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post #20 of 65
Quote:
Originally Posted by KDMeister View Post

As an avid cyclist, I would love to have an iWatch that would work with my Strava app so I could see my speed, cadence and heart rate at a glance. I have avoided mounting my iPhone on the handlebar because it's just too big and I don't want to ruin it if I get caught in the rain. An iWatch would allow me to take calls without having to pull the phone out of the back pocket of the jersey. If I could find a Bluetooth earpiece, a discreet looking one that goes inside the ear, and if the iWatch has a built-in mic, I could talk with my left hand while controlling the bike with my right hand. That would be awesome. I refuse to wear those bluetooth headset with the built-in mic. They're just too hokey for my fashion sense. 1cool.gif     

I hate to lean Google's way but I'd have thought a HUD from some sort of head wear would be better for a cyclist. Taking your hand of the bars to look at anything, done just at the moment you strike a root could be problamatic! 1biggrin.gif
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post #21 of 65
Quote:
Originally Posted by Bilbo63 View Post

I'm not sure that I even want a watch of any kind and Google's glasses don't interest me.

 

Count me as one of those who don't think Apple even wants to get into the "TV Set" business. It's a crowded space with no one making much money. The quality of TVs today are very high. The sets are affordable. I see Apple taking over the TV's user interface with a full-featured Apple TV set-top box, but no actual TV itself. Then again I could be wrong...Just ask my ex-wife.

But if Apple has plans to take over the living room do they want the TV you're staring at to have a Samsung or LG logo on it?

 

My guess is Apple won't do anything in the TV space until/unless they can do something on the content side.  It's about a lot more than a slick user interface.  But if Apple does get in this space I could see them doing a set top box and a TV, with maybe the TV having some functionality (Siri) that the set top box doesn't.  The set top box would be for those who aren't in the market for a new TV.

post #22 of 65
Quote:
Originally Posted by ascii View Post

I think that wearable computing will be the next big thing and it will take off even faster than the cellphone did (which itself was one of the fastest adopted technologies in history).

 

It will happen because people permanently plugged in to the Internet will simply be smarter than people who aren't. Imagine wearing your Google Glass, and it's microphone is picking up keywords from conversations around you and automatically Googling them in the corner of your eye. If you have an automatic encyclopaedia and other's don't, that's potentially a big advantage. It would sure make it hard for a salesman to pull one over on you, with all the facts and figures popping up in your glasses as they talk.

 

And people will discover if you say a certain word you get a funny search result, and everyone in the conversation that has Glass (or Apple's version) will be laughing together at this silly thing that just popped up, and people who aren't "connected" will feel left out. Pretty soon everyone will just have to have one.

I'm not even sure I'll trust people with "Glass", let alone joining in. But I'm pretty sure devices like this that can record anything with ease will be banned outright from my office. 

post #23 of 65
Quote:
Originally Posted by allmypeople View Post

My thoughts are simply that watches are just jewelry now... Cell and smartphones have made that happen. I would LOVE to be proven wrong (as an APPL long) but this sounds like a bad route to go down.

I could definitely see a market for a watch that gives you limited "smart" information so you wouldn't always have to pull your phone out of your pocket/purse.  Apple isn't known for doing gimmicky things so if they're going down this path I would assume its because they think there's a practical application that people would find beneficial.

post #24 of 65
Quote:
Originally Posted by matrix07 View Post

I'm not even sure I'll trust people with "Glass", let alone joining in. But I'm pretty sure devices like this that can record anything with ease will be banned outright from my office. 

There will probably have to be a whole new set of manners/social conventions around wearable computers. When it's proper to use them, when not... Interesting times.

post #25 of 65

I'm not sure it matters if the display doesn't have an Apple logo on it. Essentially that's all the TV set will become is display. The important stuff is the UI and the content and that's all that I think Apple is concerned with. The idea of Apple making a TV set itself is merely a smoke-screen. If they do, I agree with you, they'll have a set-top box too. I have no need for a new TV, I am perfectly happy with my LG set.

post #26 of 65
Quote:
Originally Posted by Bilbo63 View Post

I'm not sure it matters if the display doesn't have an Apple logo on it. Essentially that's all the TV set will become is display. The important stuff is the UI and the content and that's all that I think Apple is concerned with. The idea of Apple making a TV set itself is merely a smoke-screen. If they do, I agree with you, they'll have a set-top box too. I have no need for a new TV, I am perfectly happy with my LG set.

If everyone starts wearing Google glasses 24/7 that will be all she wrote for the TV set.

post #27 of 65
Quote:
Originally Posted by Bilbo63 View Post

I'm not sure it matters if the display doesn't have an Apple logo on it. Essentially that's all the TV set will become is display. The important stuff is the UI and the content and that's all that I think Apple is concerned with. The idea of Apple making a TV set itself is merely a smoke-screen. If they do, I agree with you, they'll have a set-top box too. I have no need for a new TV, I am perfectly happy with my LG set.

It's always the people who are happy with their TVs that's say Apple doesn't need to make one.  Last time I checked, companies are still selling TV's.  There will always be someone in the market for one. 

post #28 of 65
Quote:
Originally Posted by Rogifan View Post

But if Apple has plans to take over the living room do they want the TV you're staring at to have a Samsung or LG logo on it?

My guess is Apple won't do anything in the TV space until/unless they can do something on the content side.  It's about a lot more than a slick user interface.  But if Apple does get in this space I could see them doing a set top box and a TV, with maybe the TV having some functionality (Siri) that the set top box doesn't.  The set top box would be for those who aren't in the market for a new TV.

How will you see Apple's logo if it's on the back?
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post #29 of 65
Quote:
Originally Posted by jpvn View Post

I prefer a watch over glases any day... Apple just needs to make a cool desing that would atract all tipes of buyers..

 

Or one that snaps into all sorts of third party cases and bands.

post #30 of 65
Quote:
Originally Posted by Rogifan View Post

It's always the people who are happy with their TVs that's say Apple doesn't need to make one.  Last time I checked, companies are still selling TV's.  There will always be someone in the market for one. 

The problem is that those people will be happy with their TVs for the next 5-7 years.
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post #31 of 65

I have the Garmin 500 and love it. The 510 is looking even better and I'm tempted to pick it up and pass the 500 on to the wife (she's one of those strange people that just likes to ride her bike and doesn't care about all the data :P ).

 

I believe concentrating on the world around you while riding your bike (because you're the one at risk whether it's the other person's fault or not) in the smart thing to do. I don't wear headphones to listen to music or talk on the phone, I ride my bike and pay attention to what's going on around me. The Garmin bike computer is great being mounted out in front of you, allowing you to quickly glance at it and then back to the road. The problem with either an iWatch or Google Glass would be the time it takes your attention away from what you're doing and/or taking one of your hands away from your bike controls. Anyone know how long the eyes take to change focus from close to far? That's one of the things I could see being an issue with Google Glass (unless it somehow projects the focal point out further). They'd also need to build Google Glass into sports glasses before one could really use them this way.

 

But it's probably just me, I see people doing plenty of things while riding that I would personally not do.

post #32 of 65
That buying of Nike watches in the mid-2000s may have had to do with that Apple/Nike shoe sensor line.
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post #33 of 65
Quote:
Originally Posted by Rogifan View Post

It's always the people who are happy with their TVs that's say Apple doesn't need to make one.  Last time I checked, companies are still selling TV's.  There will always be someone in the market for one. 

 

You may be right and yes companies are still selling TVs. The thing is that they're all complaining that they're not making money. Let them duke it out, why get into that space? Is there any real value that Apple can bring to the actual TV display? Maybe there is.

 

The quality of displays right now is excellent and prices are competitive. What is lacking is the UI and content and you don't need to build the entire TV set to solve that problem. I'm sure Apple is capable of building a wonderful TV set, but I just don't see why they'd bother.

post #34 of 65
Quote:
Originally Posted by ascii View Post

If everyone starts wearing Google glasses 24/7 that will be all she wrote for the TV set.

Yes, because everyone watches TV with one eye closed

/s

post #35 of 65
Quote:
Originally Posted by ascii View Post

I think that wearable computing will be the next big thing and it will take off even faster than the cellphone did (which itself was one of the fastest adopted technologies in history).

 

It will happen because people permanently plugged in to the Internet will simply be smarter than people who aren't. Imagine wearing your Google Glass, and it's microphone is picking up keywords from conversations around you and automatically Googling them in the corner of your eye. If you have an automatic encyclopaedia and other's don't, that's potentially a big advantage. It would sure make it hard for a salesman to pull one over on you, with all the facts and figures popping up in your glasses as they talk.

 

And people will discover if you say a certain word you get a funny search result, and everyone in the conversation that has Glass (or Apple's version) will be laughing together at this silly thing that just popped up, and people who aren't "connected" will feel left out. Pretty soon everyone will just have to have one.


You are describing a nightmare. We all think we are more clever than we actually are, it would be worse with this. That kind of life would be so pretentious.

post #36 of 65
Quote:
Originally Posted by ascii View Post

If everyone starts wearing Google glasses 24/7 that will be all she wrote for the TV set.

You seriously think that's going to happen?  Has Sergy Brin got you under his RDF? lol.gif

post #37 of 65
Quote:
Originally Posted by Bilbo63 View Post

 

You may be right and yes companies are still selling TVs. The thing is that they're all complaining that they're not making money. Let them duke it out, why get into that space? Is there any real value that Apple can bring to the actual TV display? Maybe there is.

 

The quality of displays right now is excellent and prices are competitive. What is lacking is the UI and content and you don't need to build the entire TV set to solve that problem. I'm sure Apple is capable of building a wonderful TV set, but I just don't see why they'd bother.

 

 

Honestly you could say the same things about computers and phones.  Just because others aren't making money in that space doesn't mean Apple doesn't/couldn't.   They have the vertical integration companies like Samsung/LG don't have (but are trying to build).  IF Apple did do a TV my assumption is it would be more than just a dumb monitor.

post #38 of 65
Quote:
Originally Posted by crazy_mac_lover View Post

If apple Is to release iwatch , it will make google glass an idiot .

Both are great devices and have different purposes. The watch should have NFC.

post #39 of 65
Quote:
Originally Posted by Bilbo63 View Post

I'm not sure it matters if the display doesn't have an Apple logo on it. Essentially that's all the TV set will become is display. The important stuff is the UI and the content and that's all that I think Apple is concerned with. The idea of Apple making a TV set itself is merely a smoke-screen. If they do, I agree with you, they'll have a set-top box too. I have no need for a new TV, I am perfectly happy with my LG set.

 

I ponder whether they will simply make a display for their little box. By revamping their Cinema Display line to work as a TV display as well. They won't likely have a 50 inch or over model at the moment but a 30 and maybe a 40-42. They might even be able to spec it high enough to be 3D capable and work with blu-ray players for such movies until they can get them in their store. 

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post #40 of 65
Quote:
Originally Posted by Rogifan View Post

 

Honestly you could say the same things about computers and phones.  Just because others aren't making money in that space doesn't mean Apple doesn't/couldn't.   They have the vertical integration companies like Samsung/LG don't have (but are trying to build).  IF Apple did do a TV my assumption is it would be more than just a dumb monitor.

True enough. I guess we'll have to wait and see. 

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