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Here's the Buzz: What Wall Street Thinks of Apple's Watch

Tuesday, 10 March 2015 09:14 AM

Apple has finally revealed the details about its new Watch.

Here's a quick glimpse of what Wall Street is thinking:

  • CANTOR FITZGERALD: "We are projecting Apple Watch to go down as the best selling, new product category (in first 12 months of availability) in Apple's history." The firm predicts 20.6 million units sold int he first year, iPad sold 19.5 million.
  • CITI: The firm also estimates 20 million units a year, with "3 million units sold in the June quarter and 17 million units in the first four quarters."
  • DEUTSCHE BANK: Deutsche was less bullish, saying the 18-hour battery life is "somewhat limited" and the high prices on the upper end and mid-range models will drive customers to the lower end devices. 
  • GOLDMAN SACHS: They were"impressed by the UI for such a small screen" and found the device to be "surprisingly fast." They also noted the ability to sell standalone bands as accessories and backups could be a big profit driver for the brand.
  • PIPER JAFFRAY: While they were impressed with the Watch overall, they worry "it will likely take time to see an inflection in demand," as the original iPod also took a few years to really explode.
  • RAYMOND JAMES: The Apple Watch is "still searching for a killer app," and while they like the new MacBooks, "nothing in the presentation today alters our current financial expectations for Apple."
  • STIFEL: 2015 estimates for sales are "11.8 million units; $5.6B in revenue (or $473 ASP, $/unit)." 
  • CREDIT SUISSE: Predicts 20 million shipped units in 2015, but says that might be conservative.
  • ATLANTIC EQUITIES: Apple made a 'robust" case for the device's use cases" and "could be as material to Apple as the iPad" in the next few years.
  • BAIRD: They see the Watch as a "strong long-term opportunity" with a forecast of 16.9 million units this year. 
  • BARCLAYS: "Apple has done a good job engineering an elegant yet functional solution" and the use case is "getting more compelling." Also, the ability to pair it with Apple Pay is a boost for both products. They predict 7.5 million units for FY15, with a big ramp up to over 30 million next year.
  • JPMORGAN: They are "reducing our EPS estimates for FY15 and FY16 by a slight 0.5% and 1.5%, respectively due to lower pricing for the stainless steel model than we had expected."
  • COWEN AND COMPANY: Expressed some concerns about the price and lack of apps at the moment, but "On net, we remain more bullish about 2.0 Watch versions that will likely not require tethering and arrive sometime in the fall."

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Apple finally revealed the details about its new Watch.
apple, stock, wall street, firms
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2015-14-10
Tuesday, 10 March 2015 09:14 AM
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