Analysts: Apple’s iWatch Could Be More Profitable Than the iPad

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Source: iWatch Concept by Todd Hamilton

All the cool kids these days seem to be talking about smartwatches, and perhaps the most talked-about smartwatch of all, Apple’s (NASDAQ:AAPL) iWatch, seems to have garnered votes of confidence from several analysts, as well. Morgan Stanley predicts the device could be extremely profitable for the company, potentially generating up to $17.5 billion for the tech giant in just a few years, Apple Insider reports.

Katy Huberty, an analyst at Morgan Stanley, said in a research note to investors that she believes the iWatch could beat even the iPad’s debut sales of $12 billion. She says the reasoning behind her confidence in the iWatch is that it is being positioned and marketed as a “natural accessory” to the company’s other iOS devices, such as the iPad and iPhone, rather than debuting in a completely new product category that consumers are unfamiliar with and don’t yet know how best to utilize.

The iWatch, Huberty writes, per Apple Insider, will likely appeal to both first-time Apple buyers as well as those customers who already have an iPad, an iPhone, or both.

Huberty’s first-year sales estimates are based on zero supply chain constraints and a debut price tag of $299, but even if the company were to suffer supply chain constraints, she said the smartwatch is still likely to bring in between $10 billion and $14 billion in its first year.

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