Apple Watch in wild Race Johnson 001

A study released Wednesday by investment firm J.P. Morgan bodes well for Apple’s inaugural wrist-worn gadget. Although the Apple Watch requires an iPhone and is limited to owners of the iPhone 5 and newer, JP Morgan thinks there will be 400 million potential Apple Watch customers by the end of the March quarter, with five percent of compatible iPhone owners potentially buying it before the end of 2015.

JP Morgan’s Rod Hall wrote in a note to investors that 95 percent of first year Apple Watch buyers will opt for the entry-level Sport edition, priced at $345, translating into a profit margin for Apple of 39 percent.

Apple could sell 26.3 million Watches in calendar 2015.

“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,” reads the article.

JP Morgan Apple Watch shipment estimates

The projected financial impact of the Apple Watch will help push shares of Apple to $145 before the end of the year, leading JP Morgan to increase is fiscal year 2015 earnings per share forecast by 2.4 percent to $9.21.

Next year, Watch penetration should reach 13 percent of compatible iPhone users.

Based on Apple’s record-setting quarterly profits and the anticipation surrounding April’s Watch launch, shares of AAPL closed at $122.02 yesterday giving the company a whopping $700 billion valuation, or more than twice the market capitalization of Microsoft.

Based on AAPL performance today, Apple is now a $722 billion company.

Source: AppleInsider

  • Fanboy 

    Has anybody EVER cared what these companies “predict” that Apple will sell? WHO CARES. Wait until Apple reports how much they’ve sold.

    • Dan

      gotta write about something

      • Fanboy 

        Very true.

        BREAKING NEWS: FANBOY PREDICTS APPLE WILL SELL EXACTLY “A CRAPLOAD” OF APPLE WATCHES BY Q3, AND THAT NUMBER WILL RISE TO “SHIT TON” BY Q4.

      • Andrew
    • Jeff C

      I believe you’re missing the entire point of why Apple itself is a successful company. When Apple decides to enter a new market, they don’t use their own money to do that -instead they reach out to hedge funds, like JP Morgan, to finance their entire project, paying interest on their return from overall market share. Yes they are indeed a $700 billion dollar company. And they got that way by leverageing other people’s money i.e. JP Morgan, Goldman.

      To answer your question, Apple’s board members, shareholders and other partners MUST care about what these companies predict because it’s in their best interest to. After all they need to convince these banks to lend some how.

    • Jeffrey

      It might be interesting for investors…

  • Cameron

    thats actually surprisingly low. My estimation would be more like 20%.

    • jake kneller

      I honestly see the number being quiet low I know hundreds of people with iPhones being a student but at least 95% of all those people just have an iPhone because it’s the phone to have and so far the smart watch market now I may be wrong but it has been going ally towards more techy people than the average user

  • Walcy Carroll

    They are probably not too far off, I will have to see the sport edition up close in person, but I think I might go with the stainless steel option. I think the smartwatch may initially have a hard time selling to those that just don’t realize its capabilities, but after the 3-6 month window I can see it picking up.

  • Andres

    If it was cheaper that percentage would be higher

    • Andrew

      r u a wizard

      • Andres

        Doesn’t take one to know that

      • Andrew

        thatsthejoke.jpg

      • Andres

        The link doesn’t work

      • Andrew

        Are you kidding me.

      • Andres

        What kind of idiot comes back after 5 days to leave a comment… You. Then I get an email and now I’m leaving a comment for your sorry ass. I was just leaving my opinion on the very first comment I made. Damn

      • Andrew

        Original reply was deleted so I re-submited it. Also, it wasn’t an opinion; you couldn’t understand sarcasm.

    • iPhoneWINS

      the price is way too high… and the tech is too weak

  • George

    Apple might sell a ton of apple watches at launch but a bunch of people will return them because smartwatches are a waste of money, especially the apple watch. $400 to send a heartbeat my ass.

  • iPhoneWINS

    am guessing the 3rd gen of this will be the one to have

  • André Le Comte

    The technology will be out of date by the time it finally goes on sale