Apple appears to be enjoying considerable success in the rollout of its Apple Watch, and one analyst believes it could become the company’s “most profitable product ever”, according to a Business Insider article by Julie Bort.
That analyst is Carl Howe of Think Big Analytics, who writes in a blog post that based on his analysis of what’s currently known about Apple’s preorder sales, the company is on track to make huge profits based on the simplicity of the Apple Watch technology relative to price. Comparing the lower-cost Sport models of the Apple Watch to the luxury Edition models, Howe writes that “the core electronics modules in the expensive models are the same ones used in the Sport models, and they just don’t cost that much.”
Bort notes that in China the $20,000 Edition models sold out in under an hour, while about a million Apple Watches were sold in the US on the first day of preorders, according to one estimate. While that doesn’t match initial sales figures for the latest iPhone devices, Howe asserts that “it dwarfs all other smartwatch sales to date and represents a milestone in wearable sales.”
This is obviously good news for Apple, but it’s also good news for Apple’s rivals, especially Samsung; that company’s Gear A smartwatch will likely benefit from the new popularity of smartwatches established by Apple, and at the same time does not seek to compete directly with the Apple Watch, instead offering an alternative smartwatch for consumers who don’t already own an iPhone, which is required for pairing with the Apple Watch in order for the latter to function.
Of course, we remain in the area of speculation here; it’s still theoretically possible that the Apple Watch could underwhelm in its market performance. But that’s looking increasingly unlikely.