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Why This Analyst Thinks Apple Watch Will Be 'Phenomenally Successful'

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Speaking to Benzinga, Global Equities Research Managing Director of Equity Research Trip Chowdhry said that he did not expect a surprise at the Apple Inc. (NASDAQ: AAPL) introduction of the Apple Watch.

Research at Chowdhry's firm indicated that the new device would be "phenomenally successful" because of the its personal connection to the user unlike other wearables.

Chowdhry reiterated that the Apple Watch is in a new device category, but that a reaction in the stock following the watch's introduction was not expected because everything is already known about the device.

Related Link: Getting In On The Apple Watch Buzz, Without Investing In Apple

The stock could move later if demand for the watch exceeded expectations, according to Chowdhry, and then the surprise would come when Apple experienced a production constraint rather than a supply constraint.

Chowdhry did suggest, however, that questions remained around battery life and that heavy use could limit battery life to approximately three hours while in extended mode the battery may last 18 to 24 hours.

Heading into the watch release, Apple traded at $127.46, up 0.68 percent.

Kevin Riley and Brianna Valleskey contributed to this report.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2020Piper SandlerMaintainsOverweight
Oct 2020Credit SuisseMaintainsNeutral
Oct 2020Morgan StanleyMaintainsOverweight

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GMBarclaysMaintains40.0
FBarclaysMaintains9.0
AAPLPiper SandlerMaintains135.0
ALGNPiper SandlerMaintains500.0
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