When it was officially announced that Apple watch will be finally launch this year, many investing company are weighing the possibility of shifting their focus from the much-hyped iPhone 6 and iPhone 6 Plus.
The multibillion-dollar question on everyone's mind is just how profitable the Apple Watch will ultimately prove to Apple and its investors. According to one source, the answer to the Apple Watch's near-term success might lie in the company's past.
The Wall Street Journal reported recently that Apple has placed orders with its Asian fabrication partner to produce between 5 million and 6 million Apple Watches in its initial production run. This roughly equals the same number of orders Apple placed for its first assembly order for the original iPad in 2010, which has understandably prompted speculation about the Apple Watch's potential financial impact.
Even as growth has moderated in recent years, the iPad business has been nothing short of a remarkable success. In its first year on the market, the iPad sold roughly 7.5 million units and produced just under US$ 5 billion in revenue.
Given the enormity of Apple's revenue base today, an equally impressive performance in year one from the Apple Watch might not garner big praise from the investing community, and understandably so. However, if the Apple Watch mimics the iPad's historical sales trajectory and is still viewed as a failure, it will only be due to the sheer enormity of Apple's iPhone business.
Will Apple Watch need substantial product innovations in order to grow into a revenue contributor to rival the iPad? The next couple of month will give a clearer answer to this question.
The multibillion-dollar question on everyone's mind is just how profitable the Apple Watch will ultimately prove to Apple and its investors. According to one source, the answer to the Apple Watch's near-term success might lie in the company's past.
The Wall Street Journal reported recently that Apple has placed orders with its Asian fabrication partner to produce between 5 million and 6 million Apple Watches in its initial production run. This roughly equals the same number of orders Apple placed for its first assembly order for the original iPad in 2010, which has understandably prompted speculation about the Apple Watch's potential financial impact.
Even as growth has moderated in recent years, the iPad business has been nothing short of a remarkable success. In its first year on the market, the iPad sold roughly 7.5 million units and produced just under US$ 5 billion in revenue.
Given the enormity of Apple's revenue base today, an equally impressive performance in year one from the Apple Watch might not garner big praise from the investing community, and understandably so. However, if the Apple Watch mimics the iPad's historical sales trajectory and is still viewed as a failure, it will only be due to the sheer enormity of Apple's iPhone business.
Will Apple Watch need substantial product innovations in order to grow into a revenue contributor to rival the iPad? The next couple of month will give a clearer answer to this question.
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