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

Posted:
in Future Apple Hardware edited January 2014
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."

iWatchArtist'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.
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Comments

  • Reply 1 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! :)

  • Reply 2 of 65
    If apple Is to release iwatch , it will make google glass an idiot .
  • Reply 3 of 65
    jpvnjpvn Posts: 40member
    I prefer a watch over glases any day... Apple just needs to make a cool desing that would atract all tipes of buyers..
  • Reply 4 of 65
    macxpressmacxpress Posts: 4,730member


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

  • Reply 5 of 65
    MacProMacPro Posts: 17,897member
    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.
  • Reply 6 of 65
    clemynxclemynx Posts: 1,509member
    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
  • Reply 7 of 65
    rogifanrogifan Posts: 10,669member


    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?

  • Reply 8 of 65
    gazoobeegazoobee Posts: 3,754member
    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.
  • Reply 9 of 65
    solipsismxsolipsismx Posts: 19,566member
    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! :)

    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.

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

    I think that is happening regardless.
  • Reply 10 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. image    

  • Reply 11 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.
  • Reply 12 of 65
    dasanman69dasanman69 Posts: 12,972member
    kdmeister wrote: »

    I refuse to wear those bluetooth headset with the built-in mic. They're just too hokey for my fashion sense. 8-)  
     

    I know what you mean. Not many people give spare change to a bum with a bluetooth. :no: :lol:
  • Reply 13 of 65
    kdmeister wrote: »
    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 :-)
  • Reply 14 of 65
    bilbo63bilbo63 Posts: 285member


    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.

  • Reply 15 of 65
    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?
  • Reply 16 of 65
    asciiascii Posts: 5,941member


    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.

  • Reply 17 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.

  • Reply 18 of 65
    iAmTired of Apple
  • Reply 19 of 65
    gatorguygatorguy Posts: 19,817member

    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. image    



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

  • Reply 20 of 65
    MacProMacPro Posts: 17,897member
    kdmeister wrote: »
    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. 8-)     

    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! :D
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