One of the leading technology analyst has estimated that the Apple Watch sales are likely to hit the 3 million mark within the first two weeks of launching.
The 3 million Apple Watch sales break down to about 1.8 million Sport models, 1.2 million for the steel version, and 40,000 for the Apple Watch Editions. The total revenue for the sales equals about $2 Billion dollars in profit. Carl Howe, the Principal of the Think Big Academy, commented and said-
“I believe that the 3 million Watches already in flight to consumers are simply Apple’s seeding of the market prior to adjusting the final assembly mix to the actual order flow. I also believe that Apple and Quanta have probably gained enough experience at this point to begin ramping up production to more than 2 million units a month during May and June, resulting in another 4 million or so units to be shipped prior to the end of the second calendar quarter. I don’t believe that this increased production will satisfy demand however, and I expect Apple Watches to be on back order through much of the summer.”
Howe went on to say that-
“While Apple uses premium materials for the Apple Watch, I believe that the costs of those materials are small compared with the price of even the least expensive Apple Sport Watch. By designing cases and bands that command prices aligned with jewelry instead of electronics, Apple has positioned its smartwatch products to earn exceptionally high margins compared to its smartphone and computer lines of business.”
Carl Howe estimates the the gross margin for the Apple Watch will likely exceed the 60% mark, which will make it Apple’s most profitable product ever. The Apple Watch is only for Pre Order at the moment, but it will officially be available on April 24th.