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Apple's iWatch Could Be Super Profitable
Business Insider ^ | 03/04/2013 | Jay Yarow

Posted on 03/04/2013 7:59:25 AM PST by SeekAndFind

Apple's iWatch, which is reportedly coming this year, could kill three birds with one stone for Apple.

1. It gives Apple an experimental entry in the wearable computing market which is said to be the next big thing

2. If done well it would kill the Apple-can't-innovate-without-Steve Jobs meme

3. It could be super profitable.

Let's tackle the third one. Bloomberg, citing a Citigroup report, says the global watch industry will do $60 billion in sales this year, with average gross margins of 60 percent.

Apple's iWatch, should it be released, will probably not fit neatly into the watch industry, so these comparisons are probably moot. (The margins on a $54,000 Audemars Piguet watch are probably pretty high, but unrelated to a mini-computer on your wrist.)

However, that doesn't mean we can't take a shot at trying to figure out how much money Apple could make on an iWatch.

In 2010, iSuppli estimated Apple's cost of goods plus manufacturing bill was $45.10 for an iPod Nano. The iPod Nano was the little square iPod with a touch screen. It actually wound up being used as a watch by a lot of people, and perhaps was a preview of an iWatch at Apple

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: apple; iwatch



1 posted on 03/04/2013 7:59:37 AM PST by SeekAndFind
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To: SeekAndFind

2 posted on 03/04/2013 8:00:52 AM PST by SeekAndFind
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To: SeekAndFind

3 posted on 03/04/2013 8:01:43 AM PST by SeekAndFind
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To: SeekAndFind

small screen... I suppose it’s possible it could be huge..

thing is my phone is 12 inches away from my wrist, in my pocket.. so that saves me 1 second to get my data on my watch on a much smaller screen.. is saving 1 second worth the inconvenience of this tiny screen?

what the heck do I know, however... I’m old.


4 posted on 03/04/2013 8:02:47 AM PST by Chuzzlewit
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To: SeekAndFind

Looks intriguing but kind of thick. Always best to wait for at least the 3G model.


5 posted on 03/04/2013 8:03:24 AM PST by Menehune56 ("Let them hate so long as they fear" (Oderint Dum Metuant), Lucius Accius (170 BC - 86 BC))
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To: SeekAndFind

I don’t even like to wear a watch, period. I can’t imagine anything as bulky as these would have to be being comfortable for me, nor do I have any information needs so urgent that I can’t just reach for my phone, which is always on my person when I’m awake.

Maybe there’s a market for such a device, but I’m not part of it.


6 posted on 03/04/2013 8:06:31 AM PST by kevkrom (If a wise man has an argument with a foolish man, the fool only rages or laughs...)
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To: SeekAndFind
Interesting, but I still want Tom Cruise's watch from "Minority Report".



7 posted on 03/04/2013 8:07:10 AM PST by SJSAMPLE
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To: SeekAndFind
How long before they come up with the transporter function?
8 posted on 03/04/2013 8:09:49 AM PST by oldbrowser (They are marxists, don't call them democrats)
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To: SeekAndFind

this was done before.

this must be vaporware.


9 posted on 03/04/2013 8:10:20 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: SeekAndFind
It is very interesting what the cell phone industry has done to the watch industry for the under 30 market. It almost does not exist. We have our phones, we know what time it is. The advantage of this is could eliminate separate phone.
10 posted on 03/04/2013 8:11:40 AM PST by Quick Shot
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To: Chuzzlewit
I dunno, it would be convenient to have a computer / phone / do-it-all gadget that I could carry around on my wrist. Especially if it used a wireless interface for mouse, monitor, and keyboard....Imagine just being able to sit down at a "workstation" and start working. That would be pretty cool.

But, would I drop $500 bucks on it? Unlikely. I'd file this under "Cool toys for people who have more money than sense".

11 posted on 03/04/2013 8:11:51 AM PST by wbill
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To: SeekAndFind
1. It gives Apple an experimental entry in the wearable computing market which is said to be the next big thing

Could give a new meaning to the IPad.

12 posted on 03/04/2013 8:18:50 AM PST by Sawdring
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To: Chuzzlewit

watches are fashion not function.

see rolex

see any swatch.

see fossil

see cartier

IF this is rea, it is a “chick magnet” as much as a calculator watch...


13 posted on 03/04/2013 8:21:59 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Quick Shot

Now, if the iWatch has a Dick Tracy like built-in phone, the next question would be this -— WILL IT BE ILLEGAL TO TALK ON THAT PHONE WHILE DRIVING? (It is in many states).


14 posted on 03/04/2013 8:25:04 AM PST by SeekAndFind
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To: wbill

Imagine being able to control things in your office or home remotely from your watch... What’s not to like?


15 posted on 03/04/2013 8:26:56 AM PST by SeekAndFind
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To: SeekAndFind; Swordmaker; SunkenCiv; mikrofon; Charles Henrickson

OK, you have my attention.

16 posted on 03/04/2013 8:28:54 AM PST by martin_fierro (Squeeeeeeeeeeeeeee!)
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To: SeekAndFind

17 posted on 03/04/2013 8:29:54 AM PST by Uncle Miltie (Due Process 2013: "Burn the M*****-F***er Down!")
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To: wbill

With sufficient reliability and bandwidth for wireless connectivity, this likely would be the end-game for such devices. Eventually, you have a single device that acts more like a “key” than anything else, although it would essentially double as a local I/O terminal (microphone/speakers, camera/screen) as well. You’d need little local storage space if everything were accessible on demand from “the cloud”.

If you need a real screen & keyboard combo, the desktop terminal you sit in front of uses your settings and data fed from your “key”. The TV set knows what videos you’ve bought or uploaded by accessing your “key” info; likewise the home or car stereo can access your music and audiobooks. And so on.

To a large extent, this can already be done with (using Apple’s ecosystem since that’s the article subject, but there are other similar - if slightly less integrated - approaches) iCloud and iTunes and compatible devices (Mac, iOS, and Win7 or later), though cloud storage capacity and reliable connectivity for mobile devices are limiting factors. Also, they still only tie existing multiple “accounts” together, that is, my PC profile and my iPhone are two distinct “accounts” for me, although they are linked by iCloud.

What we’re looking at here may be the actualization of the old Sun Microsystems slogan: the network IS the computer, but the technology isn’t there, not yet at any rate, and not affordable enough for widespread adoption.


18 posted on 03/04/2013 8:31:24 AM PST by kevkrom (If a wise man has an argument with a foolish man, the fool only rages or laughs...)
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To: SeekAndFind

But are they waterproof?


19 posted on 03/04/2013 8:39:37 AM PST by Cold Case Posse Supporter
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To: SeekAndFind

Hmmm...

Most young people don’t wear watches - their cell phone is their watch.

Most young people like to use two hands on their phones, for texting.

Cell phones have actually gotten bigger in recent years - the advantage of a useable screen being more important than micro-size.

I’m not sold.


20 posted on 03/04/2013 8:52:02 AM PST by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: longtermmemmory

“IF this is rea, it is a “chick magnet” as much as a calculator watch...”

Except, this is from Apple, so chicks will automatically think it is trendy and cool.


21 posted on 03/04/2013 9:26:49 AM PST by Boogieman
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To: SeekAndFind

Not generally an Apple fan, but I have nothing against their devices.

If the price point was right, I might consider one of these.

Firstly, besides the “apple picking” phenomenon, I’ve seen a lot of broken iphones. People tend to drop them, or they keep them in a shirt pocket, bend over, and it falls out. Having the device on your wrist would be very helpful in that respect.

Also, as someone who would prefer a phone that was just a phone and not a camera, game device, mini browser, etc. and as someone who regularly wears a watch, I think a combination phone/watch could be a very attractive device to own.

If it could link to a basic (and inexpensive) pocket keyboard (via bluetooth?) then it might make it a useful text device. I’d also want the option of an earpiece for a more private conversation, but that’s an easy tech problem to solve.

But a lot depends on what it costs.


22 posted on 03/04/2013 9:57:00 AM PST by chrisser (Senseless legislation does nothing to solve senseless violence.)
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To: longtermmemmory
watches are fashion not function.

See my Casio Pathfinder EDC.
23 posted on 03/04/2013 10:16:22 AM PST by PA Engineer (Liberate America from the Occupation Media.)
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To: SeekAndFind

iWatch, I wait...............


24 posted on 03/04/2013 10:44:47 AM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: PA Engineer; longtermmemmory
I went through a short "crazy time" lately where I bought a bunch of inexpensive replicas of $pendy watches on eBay

But this ugly ol' thing (solar-powered, syncs via radio w/atomic clock in Colorado) has been the Best. Watch. EVAH:

I set all my other watches against it. < |:)~

25 posted on 03/04/2013 10:46:48 AM PST by martin_fierro (< |:)~)
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To: longtermmemmory
My father in law is a watchmaker. Has been for 65 years. I have a vast collection of watches. Pocket watches, self winders, solar powered, you-name-it.

I never wear any of them...except for fancy dress occasions....i.e....fashion.

The reason? I ain't no fashion bug and I have clocks that surround me 24x7;
I have 3 computers at work and each has a clock. I have 3 computers at home and each has a clock. Every room in my house has at least one...some have multiples. The kitchen stove has a clock, the microwave has one. In the living room, the TV has one, the cable box has one, the DVD player has one. In the bedroom there are two alarm clocks.

In my shop in the basement there are three clocks.
My cell phone has a clock and the dashboard in my car has one.

Why would I need a watch?

26 posted on 03/04/2013 10:51:02 AM PST by Bloody Sam Roberts (Here once the embattled farmers stood... And fired the shot heard round the world.)
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To: SeekAndFind

They will need to get kids back into the habit of wearing watches again.


27 posted on 03/04/2013 10:54:00 AM PST by dangerdoc (see post #6)
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To: dangerdoc

RE: They will need to get kids back into the habit of wearing watches again.

Hey, if it’s the cool and in thing to do, they will.

All they need to do is pay a cool star ( Justin Bieber? Rihanna? ) to wear or advertise one and that’ll catch on...


28 posted on 03/04/2013 11:01:17 AM PST by SeekAndFind
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To: martin_fierro

The Pathfinder is also solar-powered and syncs via radio w/atomic clock in Colorado. Even cooler. ;-)


29 posted on 03/04/2013 11:15:51 AM PST by PA Engineer (Liberate America from the Occupation Media.)
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To: longtermmemmory
watches are fashion not function.

My $40 Casio is a purely functional wristwatch. I don't have a cellphone.

Still, if this thing is more than vapourware, I'd get one just for the coolness of having a Dick Tracy TV watch. It's about time. What can I say? I'm a nerd at heart.

30 posted on 03/04/2013 12:01:07 PM PST by RansomOttawa (tm)
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To: RansomOttawa

My Seiko is so “green” and “earth friendly” that it doesn’t even require electricity! What will they think of next?


31 posted on 03/04/2013 1:36:04 PM PST by TexasRepublic (Socialism is the gospel of envy and the religion of thieves)
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To: martin_fierro

Each iTime will come with a complimentary pocket protector and a pen that can write in four colors!


32 posted on 03/04/2013 6:32:14 PM PST by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
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