A current report by KGI analyst Ming-Chi Kuo famous that Apple would announce the a lot rumored iWatch in late 2014. The iWatch is claimed to return in two totally different sizes and numerous types. One other report which got here out yesterday, written by Christopher Caso, an analyst with Susquehanna Monetary Group, said that Apple may primarily simply part out its iPod lineup and exchange it with the iWatch.
Caso additionally wrote about Apple delivering two fashions of the iPhone 6 and that the iWatch will are available two sizes. He believes that the fruit firm won’t replace the iPod lineup this yr. Thus far, solely the iPod Contact has acquired notable updates, whereas the Nano and Shuffle have simply seen beauty updates. The iPod Basic hasn’t been up to date in a number of years.
Throughout our Asia journey final month, our checks uncovered firmer indications that a watch product would enter manufacturing in 4Q14, and our newer checks offered further element. We consider two variations of iWatch are probably, with totally different display sizes. Our checks a month in the past advised that AAPL was trying to reserve manufacturing capability adequate for three mln models per thirty days. Our newer checks recommend manufacturing targets of 5-6 mln models in 4Q14, which we expect is cheap given the obtainable capability. We, nevertheless, aren’t assuming a cloth influence to earnings from iWatch, because the iWatch would primarily substitute the iPod within the shopper portion of AAPL’s product lineup. Whereas we don’t anticipate AAPL to discontinue iPod for a while, we additionally don’t anticipate an iPod refresh this yr, and consider iPod might submit Y/Y unit declines in consequence as shoppers buying iWatch instead.
Apple CEO Tim Prepare dinner stated throughout an interview that iPod gross sales are certainly declining, so it’s not shocking to listen to that the corporate won’t replace the lineup. Shoppers would moderately purchase the iPhone, paying a bit extra, and get higher options than the iPod.
Caso writes that the iPod won’t be utterly phased out, it’s going to nonetheless be out there. iWatch gross sales shall be stronger and shoppers would like it over the iPod.
What do you assume? Would you favor an iWatch as an alternative of the iPod? How would you take heed to music on the iWatch? Wi-fi EarPods? Tell us what you assume within the feedback.
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