Apple's much-rumored iWatch could become so successful that it could match sales of the popular iPad, according to one analyst.
Smartwatches are gaining momentum and a number of heavyweight companies are expected to heat up the race this year, including Apple. The iWatch is expected to make its debut this fall with iOS 8 on board and it could become a hugely popular device.
According to USB analyst Steven Milunovich, the iWatch could match Apple's iPad in terms of sales, shipping 21 million units in fiscal 2015 and another 36 million units in the following year. The iPad, meanwhile, saw 19.5 million units sold in its first year on the market, as it was still new and had to promote Apple's iOS.
"We expect iWatch sales to roughly track iPad unit sales - similar penetration rates would mean higher sales," Milunovich wrote in a note to investors, as cited by MacRumors. "iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less."
At the same time, however, the analyst reckons that the iWatch will launch as Apple's very first wearable gadget, and it may take some time to establish its relevance and appeal to all iOS users.
When it comes to a launch date, Milunovich agrees with recent reports pegging the iWatch's release for later this year. Currently the general belief is that Apple will unleash its iWatch in October.
"We are more confident that Apple will be introducing the iWatch before the holiday season following WWDC's introduction of HealthKit, recent hardware hirings, the acquisition of LuxVue Technology, and positive comments from Eddy Cue at the Re/Code Conference," the analyst further added.
Moreover, Milunovich even took a shot at estimating the gadget's retail price. According to him, the iWatch should hit the market with a projected average retail price of $300, potentially adding one or two points of earnings per growth.
If Apple unleashes its iWatch at this price point, the analyst believes it could hit product margins of roughly 25 percent at launch, rising to the low 30s throughout several quarters. In other words, based on Milunovich's estimates, the iWatch could add a projected $6.5 billion in revenue to Apple's fiscal 2015, as well as roughly $11 billion in revenue to its fiscal 2016.
The iWatch is expected to make its debut sometime in October, sporting a curved OLED display, health-tracking functions and iOS 8, among other things. With nothing officially confirmed at this point, however, take all rumors and leaks with a grain of salt.
