Apple Inc. (NASDAQ:AAPL) Watch Edition might sell the best in China than anywhere else, as predicted by Cantor Fitzgerald’s analyst Brian White, who shared his optimistic view about the smartwatch’s sales on a CNBC show. The product launched by Apple became available for pre-order last week and is available in three variants with the gold one starting at $10,000.
Lead time suggests strong demand in China
Reflecting on his recent trip to China, White claimed that demand for Apple Watch is enormous in the country. Backing his conclusion of strong demand, White noted that the lead times for delivery of smartwatches in China coincide with the June time frame scheduled in the U.S. He also suggested that it would not be startling if the iPhone maker manages “to sell more Apple Watch Editions in China than any place in the world.”
Analysts Bullish on AppleFurther, when asked about the future prospects of Apple stock considering some analysts have cut their rating on it, the analyst claimed that everyone is attempting to express their opinion on the stock, though the right approach would be to weigh in on the iPhone maker as the company is witnessing an increase in market share as far as its core businesses are concerned. Moreover, with the launch of a smartwatch, Apple is expanding into a new business segment, and its stock, in view of a multiple of 10 times earnings, is cheap at the moment.
Along with White, other analysts are also bullish on Apple after the release of its smartwatch. According to Amit Daryanani, an analyst with RBC, the company is being speculated to sell almost 15 million to 20 million watches in the first year of sale. Another analyst from Cowen and Company predicted a sale of at least 31 million units of the Apple Watch in the initial twelve months.
Until now, Apple has not revealed any information regarding the number of preorders received. But the iPhone maker has been claimed to acquire almost 1 million preorders for its smartwatch in the first day, as reported by Slice Intelligence. Also it is reported that consumers mostly prefer the space grey Sports version of the aluminum Apple Watch.