Analysts expect that Apple will sell 19.6 million Apple Watches in 2015 and possibly 27.8 million in 2016. This could totally reposition the Apple brand. Aaron Rakers, who works for Stifel, wrote a report that is based on how Apple Watch sales will do and that report is why Apple’s stocks are going so high. According to what Rakers is suggestion, there should be an initial gross margin of 40 percent on the wearable device, a blended average selling price of around $490 in 2015. Further to the report in 2016, there will be 27.8 million watches sold with $13.1 billion in incremental value. A lot of these suggestions come because of Apple’s expansion in China.
Rakers said that the 2015 watch sales will make up six percent of Apple’s base. In the same launch time frame, the iPad had about 35 percent. According to Rakers, “We believe Apple Watch will drive a deeper debate on Apple’s vision going forward focused not only on use cases, but also positioning as an aesthetic fashion piece for a broad audience.”
