Can the iWatch Be More Than a Hobby For Apple?


It seems as though analysts may have spent so much time trying to unveil when Apple Inc’s (NASDAQ:AAPL) rumored iWatch will come out, that they’ve forgotten to consider if it’ll even be successful.

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Citigroup (NYSE:C) analyst, Glen Yeung, wrote in a note earlier this month that he believes Apple has already primed its supply chain and is just waiting for the go-ahead to initiate production for the new highly anticipated product. He events contends the launch could take place before the year’s end.

So everyone has been waiting with baited breath to see when Apple will roll out the new product, and the tech giant (ever so tight-lipped) isn’t budging, adding to the anticipation. But as Apple nerds everywhere start adding the iWatch to their Christmas list, a new report from Jefferies analyst Peter Misek might just rain on their parade.

Because according to, Misek believes the watch will be nothing more than a hobby for Apple — an expensive hobby that is, as he predicts it’ll fall between the price point of $50-300 and will likely not be a new major product line. He explains that, from the trials he has seen with the iWatch, Pebble, Nike, and a white label, a watch with a hard-to-use touchscreen is not appealing to consumers when they can just as easily access their iPhone.

New technologies, such as voice control, gesture control, and display technologies, will have to develop before there is an increased consumer need for smart watches. Additionally, because only those with an iPhone can effectively use the iWatch (Misek doesn’t believe the smart watch will have a cellular chip), the base amount of customers Apple can serve is much lower, and could only afford it about 5 percent penetration into the market.

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Luckily for Apple, the bar for a smartwatch has been set very low due to poor, past smartwatch experiences, but according to Misek, before the iWatch can take off running, Apple will need to figure out a way to increase its usability for consumers, either by augmenting its touchscreen or shrinking its users’ fingers.

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