by 
iWatch Mockup Via Dribble.com
Now that 2014 is in full swing, rumors of what Apple has in store for us this year are swinging just as fully. There will be photo leaks of television sets, suppliers claiming they’ve been working on a bigger iPad, and the iWatch will be on everyone’s lips. Analysts are already predicting what kind of impact Apple’s purported wearable technology will have on the industry. According to Morgan Stanley, tens of billions of dollars is the impact.
According to AppleInsider, Morgan Stanley analyst Katy Huberty believes that Apple will generate $17.5 billion in its first year, more than $5 billion higher than the iPad’s first year.
Huberty believes that the reason the iWatch will do so well is that it will enter the market as an accessory to a preexisting iOS ecosystem as opposed to being one of the first in a category without a companion link, like the iPod was. The iWatch would be enticing to the millions of iPhone and iPad owners already in existence. Plus, it would entice first-time Apple device buyers into the fold.
Huberty’s prediction is based on the assumption that the supposed iWatch would be priced at $299. The first-year figures do not take into account supply chain constraints, which have historically been a major factor in lowered revenue for Apple, especially with the iPad mini.
Apple has been investing significantly in research and development over the past few years, which could point to evidence that the iWatch is in the pipeline. According to AppleInsider, Apple’s R & D increased by 30 percent from 2010 to 2013.
“Guidance for $10.45B of capital expenditures (non-cash and excluding retail stores) for FY14, which Apple just reaffirmed in the latest 10-Q, is up 32{813a954d5e225a1509f22204ece89c855080ce25555f20805f61bed63cbfde3b} from $7.9B in FY13. We believe this is an indication that Apple is investing in new product categories as single-digit iPhone and iPad growth no longer demands significant increases in capital expenditures,” Huberty wrote in the note to investors.
Whether the iWatch will appear in 2014, or ever, is still unknown. However, there have been plenty of rumors from various reputable news organizations claiming that the wearable computer from Apple is coming.
» Related posts:
Bloomberg Says Apple Has Team of 100 Working On iWatch Design
Apple Applies for iWatch Trademark Domain in Japan
Rumored Production Problems May Delay Apple’s Highly Anticipated iWatch
