Apple Watch set to be Apple’s most profitable gadget ever

Another analyst has come forward with his thoughts on the Apple Watch launch, and he believes that the current state of play (with various delays on certain models) has been planned – and the device is set to be Apple’s most profitable gadget ever.

Carl Howe is a researcher from Think Big Analytics, and Business Insider reports that he believes that Apple more or less instantly sold over 3 million units of the Apple Watch – with 1.8 million Sports models ordered, 1.3 million of the standard Apple Watch, and 40,000 of the super-expensive Watch Edition.

Howe wrote: “I’ve built a simple model that predicts that the initial run of watches was more than 3 million units and will yield Apple Watch revenues of over $US2 billion for the first two weeks of sales.”

That’s a cool £1.34 billion our money, with $500 million (or £334 million) coming from just 40,000 units of the Watch Edition – a pretty incredible profit margin right there, as while the case is more expensive on that model, the electronic innards are still the same as the basic Sports model.

Howe believes that the Apple Watch will, in overall terms, be the “most profitable product line ever”, with gross margins exceeding 60 per cent – and we wouldn’t argue with that conclusion. It’s going to be a big initial money spinner, at least, judging from everything we’ve heard thus far – though how sales will extend after that first rush of spring is another matter.

Another source, KGI Securities analyst King-Chi Kuo, recently said that Apple will rack up 2.3 million pre-orders before the Apple Watch goes on sale this Friday – though he reckoned the device will also be more skewed to the basic Sports model, with 85 per cent of purchasers plumping for the low-end device.

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