Apple’s Future Hangs On Its Smartwatch Sales

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By Jacob Maslow

smartphone and smartwatch
Smart phone and smartwatch connected via blue tooth

It’s easy to get excited about Apple (NASDAQ:APPL) stock lately. After all, Apple, according to some reports, produced the biggest profits in history. The runaway success of the iPhone 6 destroyed and surpassed even the most optimistic estimates of Apple fans. That’s how thoroughly Apple crushed its last quarter sales.

The discussion then turns naturally to whether Apple can sustain this level of success. A key driver to the iPhone 6’s success is the fact it’s a model change. Previously, Apple’s smartphones were very small. It makes all the sense in the world for current iPhone users to upgrade to the larger size. In fact, according to changing consumer trends, more smartphone users are preferring larger screens. This is all well and good but any talk about Apple sustaining its sales volume is premature until we see how Apple’s smartwatch product performs. The size upgrade triggered by the iPhone 6 might be a one-off thing. A lot is hanging on the

A lot is hanging on the smartwatch. First, it’s the first Apple product that doesn’t have Steve Jobs’ influence. Second, wearable wireless technology is a market that is still very much a work in progress. It’s still very soft and anyone player can come in and dominate it. Will Apple be the brand that would finally give coherence and shape to an otherwise amorphous and seemingly ‘unnecessary’ product segment? If Apple is able to hit a home run with the

If Apple is able to hit a home run with the smartwatch, it will not just be able to conserve its market momentum, it can also offset the continuing weakness in iPad sales. The unstated story in all the euphoria about Apple earnings is the fact that its tablet segment is showing continued signs of weakness. Moreover, Apple is under pressure in some smartphone markets due to its high end pricing.


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