Apple Watch Version 2.0 Expected To Boost Earnings By $0.47 Per Share Come 2017
A curious footnote in the research from Wamsi Mohan and BofA analysts is their view on the second version of the Apple Watch, expected to be unveiled in March 2016.
"We expect Apple to launch version 2 of the Apple Watch at its event in March," Mohan wrote, adding that his team expects the company to "focus on increasing the battery life of the watch (to make it through a working day) without having to turn the screen off." This was a major complaint surrounding the first iteration of the device, he added.
What about new materials used in the production of the Apple Watch 2.0? Mohan said "media reports" suggested that, and added that Siri could have a faster response time.
"Other possible feature enhancements include the addition of new sensors, GPS and waterproofing," he concluded.
The firm projects 22 million Apple Watch 2.0 units to be sold in 2016 and 26 million units sold in 2017, amounting to $9.7 billion in revenue this year and $11.7 billion the year after. Bank of America also projects Watch gross margins to rise from 34 percent to 38 percent by 2017, and projects that the device could positively impact 2017 EPS by $0.47.
Apple shares opened Tuesday several cents above the $100 mark, but are now near $99.20 at mid-day.
Latest Ratings for AAPL
|Jan 2017||OTR Global||Downgrades||Negative|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.