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Apple Inc.’s (NASDAQ:AAPL) iWatches Can Become A Fashion Symbol

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By on Technology & Software

News has it that the iWatch of Apple Inc. (NASDAQ:AAPL) will be launched earlier than predicted.  The new watch of the company will be more than just a gadget. A number of companies and industries are looking forward to the launch of this famous watch. According to some market analysts, the Apple watch has the potential to change the entire way of living.

The chief executive of the company, Tim Cook, has been with the company for quite a while now. Tim was the operational chief of the company during the time of Steve Jobs. The iPads and iPhones of the company proved quite famous, but they were launched under the leadership of Steve. The Apple iWatch will be the first gadget that will be launched under Tim’s watch. If the watch fails to gain popularity, serious questions about the leader of Tim are on the way.

The growth rate of Apple Inc. (NASDAQ:AAPL) has slowed down over the years. If the smartwatch of Apple is launched successfully, it can act as fuel in the growth of the company.  But then again, the iWatch will take some time to make a significant contribution to the company. Let’s say that the company sells around 10 million smartwatches in the year 2015 and let’s assume the average selling price to be $500: this will only generate $5billion in revenues. The company generates this much money after every ten days, so it will not be a big deal.

Perhaps this is the reason why the company has planned to merge the sales of iwatched with iPods and Apple TVs.

This device of the company can become a fashion symbol too, if Apple markets it the right way. The company will be able to generate huge sums of money if it is perceived as a fashionable wearable device by the top celebrities and models.

Morgan Stanley recently conducted a survey on wearable devices. The results showed that around 6 percent of people either owned fitness devices of Nike or smartwatches of Samsung. When asked as to which brand the customers will prefer, most of the people answered Apple.

Some market research companies are of the opinion that the size of the market of wearable devices will grow at a much faster pace than that of the iPhones and iPads. According to the report of Morgan Stanley, around 70 million smartwatches will be shipped across the world during the year 2015. The size will go up to 248 million by the end of the year 2017.

Coming to the stock prices of the company, Apple Inc. (NASDAQ:AAPL), during the last trading day of January 01, 2015, Apple Inc. (NASDAQ:AAPL) started its stocks at a price of $111.39 and closed at a price of $109.33, after hitting the highest price of $111.44. The company has a total market capitalization of $641.2 billion with a P/E (price to earnings) ratio of 17. As far as the dividend yield of the company is concerned, the figures are recorded to be around 1.72 percent.

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