Apple CEO Tim Cook recently noted that the long-awaited Apple Watch will ship in April. This means that the wearable device will be on the market for eight full months in calendar year 2015.
How many of the devices will Apple sell before New Year’s Eve? Five percent of compatible iPhone owners will buy an Apple Watch this year, according to JP Morgan’s Rod Hall (via AppleInsider).
In a note to investors, the analyst estimates that Apple Watch sales will top 26.3 million units before the end of the year. The Apple Watch requires an iPhone 5 or newer.
An estimated 95 percent of first year Apple Watch purchases will be for the entry-level Sport edition, according to Hall. This would translate into a profit margin for Apple of 39 percent.
As AppleInsider notes, “But if the stainless steel version of the Apple Watch or the gold “Edition” model prove more popular than Hall expects, he admitted his margin projections could prove conservative.”
Hall expects that 13 percent of compatible iPhone owners to purchase an Apple Watch by the end of 2016.
Personally, I think these numbers are highly conservative. I would expect that more than 5 percent of iPhone owners to buy an Apple Watch before the end of the year. We’ll soon find out, no?
Apple is likely to hold a special event on Tuesday, Feb. 24. At that time, we should hear more about the Apple Watch launch.
In the meantime, see: Itching to explore more about Apple Watch? It’s time for WatchAware, Tim Cook discusses the Apple Watch and more at the Goldman Sachs Technology and Internet Conference, and The latest on the Apple Watch: Release date, prices and more.