Apple's $17.5 Billion iWatch Opportunity

Updated
Apple's $17.5 Billion iWatch Opportunity

Apple is widely expected to launch its iWatch this year, which should include a wide range of health and fitness features. One analyst is offering up estimates for how the rumored product might fare during its first year. Morgan Stanley analyst Katy Huberty thinks that the iWatch could generate upwards of $17.5 billion in revenue over the first year, unless supply constraints hold back Apple's ability to meet demand. Huberty also expects Apple to price the device at $300.

Samsung didn't fare so well with its own $300 Galaxy Gear, although the company is likely preparing to launch a new version in coming months. Even though Apple may pursue a similar strategy of making the iWatch more of an accessory than a stand-alone device, Apple enjoys a much stronger "halo" around its products than Samsung.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's iWatch opportunity with Evan Niu, CFA, our tech and telecom bureau chief.


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The article Apple's $17.5 Billion iWatch Opportunity originally appeared on Fool.com.

Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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