Right from the time when Apple Inc (NASDAQ:AAPL) announced its smartwatch, there have been continuous speculations about its success, cost, and demand. Most of the experts are considering it a product that will redefine the complete niche. Further, the products of the company dominated Black Friday sales dwarfing its opponents.
Steven Milunovich, analyst at UBS, said that the entrance of iPhone maker in the smartwatch niche was enough to trigger demand among consumers and as many as 10% of the people taking part in the survey are likely to buy a smartwatch within the next 12 months. For a market that is still in its nascent phase, Apple Inc. (NASDAQ:AAPL) is likely to boost the sales much further. The smartwatch industry reported net sales of $700 million in 2013 with Samsung’s Galaxy Gear as the most sought after smartwatch.
According to Milunovich, Apple is likely to sell up to 24 million smartwatches within the first nine months of its sale and he further estimates the demand to reach up to 68 million by 2018 with a price tag of $420. While talking about watch he added, “Apple can’t afford to have a poor consumer experience with version one of any product.”
Black Friday was another front where Apple did better than most of its competitors as the iOS devices accounted for 34% of online traffic as compared to 15% online traffic looking for Android devices. At the same time Apple Inc. (NASDAQ:AAPL) accounted for 22% of the online sales. The iPhone maker announced exciting offers including special edition iTunes gift card (RED) with some specific Apple products. One of the recent reports from KGI analyst predicted up to 71.5 million iPhone sales making it one of the most successful quarters of the company. The shares of Apple Inc. are trading $115.04 after a sudden drop in share prices.
This article has been written by Prakash Pandey.
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