Spending 2 Weeks With The Apple Watch, Bank Of America Style

In a report published Friday, BofA Merrill Lynch analysts maintained a Buy rating on Apple Inc AAPL, with a price objective of $145.

In the report BofA Merrill Lynch noted, "Our research team tried out the Apple watch over the past two weeks and walked away largely positive but also with a wish list of features...Given the supply constraints and lack of availability to purchase in stores (yet), we remain conservative in our near term estimates of 8mn in F15, 30mn in F16 but view the watch as another product that locks customers firmly to the Apple ecosystem over time."

The analyst enumerated the features that were liked:

1. Notifications: from calendar alerts, text messages (fast response), breaking news from the Wall Street Journal, CNBC, twitter updates, weather, etc.
2. Activity and workout apps: a constant reminder of how sedentary our jobs are and made us much more conscious to stand up and walk around. We view health related apps to have a significant impact now (and more so in future versions)
3. Passbook: from checking in at the airport to paying at Starbucks, "the convenience of the watch was unmatched
4. Music/audio calls: with wireless Bluetooth headphones and a synced playlist, "the convenience of not having to carry the phone when out on a jog was great
5. Battery lasted all day
6. Maps: walking directions in the city through haptic feedback was particularly helpful relative to constantly looking at the iPhone

The analysts enumerated the features that are still to be desired:

1. Responsiveness of third party apps and easier setup/less dependence on iPhone
2. In-built GPS (yes it’s a battery issue) which will open a host of new location aware possibilities More health apps/sensors including oxygen monitoring, sleep monitoring etc
3. Wireless charging and eliminate carrying one more charger
4. Longer battery life