Apple’s iWatch expected to be even bigger than the iPad in its first year

Apple rivals explain why they hope the iWatch is a smash hit

The highly anticipated iWatch is expected to become a best-selling device with consumers, with investment firm UBS saying in a note to investors that Apple could sell 21 million smartwatches in the first year alone, and 36 million iWatch units in the second year. The device is expected to be priced at around $300.

“We are more confident that Apple will be introducing the iWatch before the holiday season following WWDC’s introduction of HealthKit, recent healthcare hirings, the acquisition of LuxVue Technology, and positive comments from Eddy Cue at the Re/Code Conference,” UBS analyst Steven Milunovich wrote in the note, which was picked up by AppleInsider.

Furthermore, Milunovich added the firm expects the iWatch “to roughly track iPad unit sales” in the first year — Apple sold almost 19.5 million iPads in the tablet’s first year of availability.

“iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less,” the analyst wrote. “On the other hand, iWatch is the first product to be worn, which might not appeal to all users.”

At an average selling price of $300, Apple would get product margins at around 25% at launch, increasing to low 30% in following quarters. The iWatch could bring in $6.5 billion in revenue in Apple’s fiscal year 2015, and about $11 billion in the following fiscal year.

A recent report revealed that Apple would unveil the iWatch during a special media event in October, while Cantor Fitzgerald analyst Brian White said in a research note the iWatch will sell in the $200 to $230 range.

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This article was originally published on BGR.com

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