Apple will hold an event in a few weeks to introduce new products. You can expect more detail and official launch date for the Apple watch , Macbook air "2", and perhaps an 12.9" iPad ( running full OS X ??) .
REUTERS reports that the tech giant asked its Asian suppliers to make 6 million units of its three Apple Watch models. At a starting price of $349 , the Apple watch is quite expensive and may be a concern for some investors. Can Apple really sell a watch that needs a different charger AND needs to be charged EVERY night ? o_O , only time will tell.
If the Apple Watch is a success , this could potentially add approx $ 5 billion/quarter. In any case , Apple remains a solid long positions, and may reach $150 by the end of the year , as many have suggested. Still long.
Apple did great in the last 30years... growing from cool for few to very cool for all.
imac ipod iphone ipad...
Now all their products eat into each other.
I reckon the iwatch will be a flop in the medium term if not on the first day.
Then comes the pricing: 14 times ebitda.
That means we expect apple to stay on top of the waves every year for the next 14 years (rolling).
They are better and smarter than nokia or blackberry which disappeared from the scene and there will be great innovation with cars systems etc but we can't expect them to edit a blockbusters every year... question of time before one product is not as attractive as the iphone was... it is not a big bet to believe it is just a question of time in a very competitive arena where technology progress is exponential.
see this article - One thing is clear.... Smart phones like dvd players will become a cheap commodity at some point and it will be more difficult to embed large margins in the price.