'iWatch' could be bigger 'cash generator' for Apple than television market, say experts

Apple's wearable version of iPhone, iWatch, could turn out to be a bigger cash generator for the tech giant than its long-rumoured foray into the television market, a report has said.

According to Citigroup Inc. analyst Oliver Chen, the global watch industry will generate over 60 billion dollars in sales in 2013.

While that's smaller than the pool of revenue that comes from televisions, gross margins on watches are about 60 percent, he said.

A Bloomberg Industries analyst Anand Srinivasan said that this is four times bigger than for televisions, the Telegraph reports.

According to Chen, Apple iWatch 'can be a six billion dollars opportunity for the firm, with plenty of opportunity for upside if they create something totally new like they did with the iPod'.

The TV industry will generate 119 billion dollars in sales this year, according to market-research firm IHS Electronics & Media, the paper said.

Using Chen's margin estimates, a 10 per cent share for Apple in each market would mean gross profit of 3.6 billion dollars for watches, outstripping 1.79 billion dollars for televisions, the paper added.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus