Apple Inc. (AAPL) Gets Overweight Rating From Piper Jaffray With The Expectation Of Average Sale of Apple Watch

Apple (AAPL)

Apple Inc. (NASDAQ:AAPL)’s Watch is one of the latest entrants in the wearable technology industry, an industry which has witnessed an average growth until now. Gene Munster, Piper Jaffray, reiterated overweight rating for the iPhone maker with a target price of $120.

Despite of the warm welcome received by Apple Watch, Munster would rather maintain conservative expectations for the first year. He further added,

“As Apple slowly raises the profile of the watch ahead of next year’s launch, we believe it is useful to remind investors of our conservative expectations for the first year’s sales.”

Munster further expects that despite of its popularity Apple watch might sell somewhere around 10 million units during fiscal 2015.

Apple (AAPL)

According to his survey of Apple customers lined up on September 19 for buying iPhone 6, “34% of customers stated that they did expect to buy an Apple Watch, while 66% said they did not expect to purchase one.” Munster added, irrespective of the high sales claims, that the total number of smartwatches sold till date is less than 3 million, although he agrees that Apple Inc. (NASDAQ:AAPL)’s smartwatch could be a game changer.

Cowen & Co., investment bank, earlier said in its report that Apple Watch has the potential to revolutionize the wearable device industry and according to its predictions, the wearable device industry will grow up to $170 billion by 2020. The bank expects wearable device industry to grow at 132% compound annual growth rate by 2020 and annual growth rate would touch 8% by 2020 unlike the current 1% market growth. Apple watch would be available for sale in the first quarter of 2015 and it will use sapphire glass as screen material.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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