Is Apple’s iWatch Redundant?

Citing the possibility of the rumored Apple (NASDAQ:AAPL) watch, analyst Toni Sacconaghi of Bernstein Research reiterated his Overweight ranking of Apple stock, and maintained its $725 price target.

If Apple were to go ahead with the device, which has been heavily speculated upon in recent months since Apple’s patent filings were published, it could provide Apple with several billion dollars in additional revenue. Sacconaghi estimates that if 5 to 8 percent of the base iPhone market were to purchase the device (9 to 25 million units), which may retail for around $250, Apple could nick $3.4 billion to $5.7 billion of the annual $56 billion watch market.

However, Sacconaghi did have a couple of reservations about the product. He said that the watch would provide a viable alternative to the iPod, and could expedite the decline of iPod sales as the watch device would cannibalize demand for the iPod…