Sales of the Apple iWatch will be modest compared with the company’s other product lines, an analyst predicts, despite claims that wearable tech is the next big thing.
Apple’s first-ever venture into wearable technology was greeted in some quarters as just the fillip the company needs after recording its first drop in profits for a decade during the first quarter of 2013.
However, influential Jeffries analyst Peter Misek, isn’t sold. At all.
In a note to investors, he damned the device as having no more than niche appeal.
“We believe iWatch will more likely be a hobby for Apple than a major new product line," Misek said.
In keeping with industry wisdom, he also corroborated projections that the smartwatch will not make and take calls, but will function solely as an accessory for iPhone owners. And it’s precisely this factor that will limit its potential market, he posits.
“We do not believe the iWatch will have a cellular chip so it will need to be paired with an iPhone for full functionality.
“Therefore we use our estimate of the iPhone installed base (250M) as the addressable market.”
The iWatch’s feature set is expected to take in fingerprint scanning technology and a screen in the region of 1.5 inches and could arrive later this year.