Boston, MA 03/05/2013 (wallstreetpr) – Apple Inc (NASDAQ:AAPL)’s Cook dropped hints that his innovative company is working on a television to spur company growth, but by the looks of it there is a possibility that the iWatch, which is a wrist-watch style computer device may prove to be a frontrunner. The global watch industry is set to churn out sales worth $60 billion, in 2013. Though that doesn’t seem to be too impressive when compared to the revenue that TV’s rake in, watch sales have gross margins of 60 percent which is actually four times greater than that of TV’s said a prominent analyst. Apple has always been an iconic brand and it is now foraying its way into the watch market at a time when iPhone and iPod sales are experiencing a slump.
Unique product required
The Apple stock peaked in September and dipped by over one third its value since then. Samsung Electronics Co., Ltd (KRX:005930) has been turning on the heat and Apple is trying its level best to maintain its position with its lucrative retail work and trying new avenues for growth. Concerns have also been raised about the speed at which Cook is trying to accelerate growth by launching new products. The sentiment in the market is that if Apple is really able to offer consumers a product so unique and one that they never even realized they needed they might hit the right vein and create a $6 billion opportunity for Apple Inc (NASDAQ:AAPL).
The TV industry is expected to generate sales worth $119 billion this year and if Apple manages to grab at least a bit of 10 percent from that amount, it would work out to gross profits worth $3.6 billion just in watches which will outstrip the $1.79 billion that TV’s sales are expected to generate. The statistics look alluring and what is left to be seen if Apple can actually make it to that point. The 100 odd designers who are working on the iWatch design are attempting to add iPhone and iPad functionality to it. Making calls. Caller ID, checking map coordinates are going to be some of the functions that will be added to the wristwatch said an unidentified source. Health-related data reading as well as a pedometer may be added to it too.
The product is slated to hit the market this year and Apple is said to have filed close to 79 patents containing the word “wrist”. A kinetic energy-powered flexible screen device patent is also said to have been filed. Apple Inc (NASDAQ:AAPL)’s iOS technology will be used in the wristwatch for added functionality and control. Pebble Technology plans on working with Apple Inc (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) to get into the watch market. Smart watches have been tried in the market earlier as well but they did not pick up pace.
In 2003, Microsoft Corporation (NASDAQ:MSFT) in conjunction with Fossil, Inc (NASDAQ:FOSL) and Citizen watch Co had attempted to build certain products that would deliver sports scores, weather reports and traffic information but those efforts eventually bit the dust in 2008. Meta Watch Ltd and Kiskstarter Martian watches are not far behind in their efforts. Watches are here to stay and last months SWATCH GROUP AG (PINK:SWGAY)’s record surge proves just that. Fossil, Inc (NASDAQ:FOSL) has no watch-plans this year. The watch industry is very healthy right now and ripe for the picking. Question is, is Apple going to get the big bite?
Shares of Apple Inc (NASDAQ:AAPL) were down by 2.42% to close at $420.05
Shares of Samsung Electronics Co., Ltd (KRX:005930) went up by 1.49% to close at $1562,000
Shares of Fossil, Inc (NASDAQ:FOSL) went up by 0.05% to close at $103.47
Shares of Google Inc (NASDAQ:GOOG) went up by 1.90% to close at $821.50
Shares of Movado Group, Inc (NYSE:MOV) went down by 0.14% to close at $36.35
Shares of SWATCH GROUP AG (PINK:SWGAY) were steady at $28.54
Shares of NIKE, Inc (NYSE:NKE) went down by 0.16% to close at $54.73
Shares of Microsoft Corporation (NASDAQ:MSFT) went up by 0.72% to close at $28.15