This year, the global wrist watch industry in set to generate more than 60 billion dollars. That is less than TV’s, but the profit margins are greater. Four times greater coming in around 60%. Apple is all about huge margins when it comes to their products as evident by the premium pricing. They do have quality products however and can demand those higher prices, and I’m sure the iWatch will be no exception.
People familiar with the iWatch project say a team of about 100 designers are currently at work adding new features. The anonymous source also gave us a glimpse of some of the features:
- Ability to make calls
- Caller ID and map of incoming caller
- Health related data, such as heart rate
All of this will be taking place on a smaller device, so iOS is being modified to accommodate a watch sized screen.
With Android and Samsung firmly positioned, iPhone sales have been slow after the initial release of the iPhone 5. This has been reflected in the Apple stock price. The iWatch could compensate for some of this loss. Not only could the iWatch help Apple’s stock, but also the watch business in general. Marshal Cohen is an analyst with the NPD group. He says:
“Apple can merge fashion with function,” said Marshal Cohen, an analyst at NPD Group. “An Apple watch could triple the size of the watch business in a year or two. They have the opportunity to get everyone that owns a cell phone to go out and buy another watch.”
If anyone can pull off a smartphone being a fashion accessory, it’s Apple. And the iWatch could be the ultimate nerd accessory.
Apple has filed at least 70 patents with the word “wrist”. To me that says the iWatch is inevitable. Will you be replacing that Rolex with an iWatch?