The Demand For Smartwatch
Apple (NASDAQ: AAPL) has been one of the top leaders in the smartwatch revolution. Investors are optimistic for the smartwatch market to go mainstream. Questions linger if Apple is still set to release a new smartwatch. Apple being at the forefront, has remained innovative within the sector yet also remains a traditional hardware technology company. The global watch industry estimates to be valued at $60 billion in sales in 2013. Shares rose today up 0.54% to $419.09. Apple Inc was up closing at $432 on Monday.
Consumer demand is still high. Apple’s new iCloud software technology integrates smartwatch devices to other technologies such as the iPad and other media devices. According to eMarketer, “ 30.5% of the UK population owned a smart phone and it has forecast that this will rise to 65.1%, or 41.9 million people, by 2016. “ Flexibility with smartwatches is also in demand.
Smartwatch revenue growth has been at an all time high. About 1.2 million digital watches will be sold this year, generating $370 million in sales, states ABI Research. It is forecasted that sales may jump more than 20-fold by 2015.
Investors should understand the importance of sophisticated technologies required to innovate to devices such as smartwatches. According to Bloomberg, “ Apple revenues can be up to $3.6 billion with smartwatch.” Apple had reached its lowest level due to growth worries earlier this year since late 2011. Apple still was resilient as it is the world’s largest company by market capitalisation. Companies like Apple are poised to compete in inventing new products and even more importantly instill leading standards of these devices.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.