--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


apple watch estimates +2

17:45 18-Feb-15


A subscriber asks:
Does the updated estimate of 6M watch shipments for the launch move the needle for you at all?

http://www.theguardian.com/technology/2015/feb/18/apple-watch-factories-making-up-to-6m-for-first-wave-of-sales-report
 
The answer is "barely".  Even if the rumor is true, and we assume the same price per part:

5.5M watches × $0.85 per part × 17% margin = $0.795M / 92.3M share = 0.0086 EPS

I do think InvenSense may get a microphone win besides, but Apple likes drive a hard bargain, toot its own horn, and do its own software, which is why the latest phones are a such kludges with the dual gyros.  So the extent and public characterization of the "besides" may still be very hard to judge even after the Watch has been torn down.