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Apple Watch divides opinion among analysts

The internet crowd might have dropped their jaws with Apple's $17,000 (£13,500) rose-gold Apple watch, but analysts just don't feel the same way.

Instead, most analysts are concerned about its price points and voiced doubts about whether it will spur the demand needed to reach its profit margin.

Apart for the sky-rocket price of the rose gold Apple Watch - which costs more than the amount a US-based minimum wage earner would get in a year - its sport model was priced at $349 and the mid-range models were in the range of $500 to $700.

Apple’s Tim Cook boasted that its new wearable “can be an incredibly rich and integral part of your life.“ The smartwatch allows users to track health stats, make calls and has other apps available that offer a range of features. However, the price point is just "a big ask for consumers," said CCS Insight's chief of research Ben Wood.

Forrester analyst James McQuivey adds that its cost had “made it sound like something from Lifestyles of the Rich and Famous.”

Most analysts’ main concern was the total number of watches Apple could sell, but for BGC Partners technology analyst Colin Gillis, the Apple Watch is “going to be a successful product for Apple.”

However, he also believes that its sales “will be less than 10 per cent of revenues and an even smaller percentage of profits.”

Meanwhile, McQuivey predicts that tens of millions of Apple Watches will be sold by the end of 2016, but he doubts that its popularity will stand the test of time in the same way that the iPad did.

But rivals should not be pleased with the foreseen cons of Apple’s smartwatch, because it would affect them as well, according to Wood: “If Apple Watch does not fly ... it’s going to set the whole wearables category back for potentially years.”