Nick Bilton reported for The New York Times that Apple is “experimenting” with smart watches, made of similar glass to that of the iPhone. The watch is expected to generate more than $60 billion in sales for the year of 2013, according to Citigroup Inc.
Apple has a team of about 100 product designers working on a wristwatch-like device that may perform similar tasks those of the current iPhone and iPad. The watch will be made of glass that can bend to one’s wrist with a Multi-Touch sensor throughout the device.
While some people think that the Apple television is a better financial decision than the production of the new watch, this is false, simply because gross margins on watches are about 60 percent. That is four times bigger in comparison to televisions. Apple is moving toward watch production to help compensate for slowing growth in other areas, such as iPhones and iPods.
Apple has recently seen a “slump” in their stock, and they are experiencing heavy competition with Samsung. Creating a watch “can be a $6 billion opportunity for Apple, with plenty of opportunity for upside if they create something totally new like they did with the iPod — something consumers didn’t even know they needed,” noted by Oliver Chen, and analyst of Citigroup Inc. According to most, the new Apple watch is a good idea for economic purposes, and it is foreseen to be a very trendy product.
So be on the WATCH for the new Apple iWatch at some point this year.