Credit: Shutterstock photoApple's (AAPL) media event earlier this week demonstrated that Apple is slated to get a huge boost in revenue from new products announced, including the widely anticipated Apple Watch. However, not only is the company's ecosystem getting stronger, developers are incredibly excited about the future.
As part of the Apple Watch event, several major software companies unveiled apps for the watch, including Uber, Instagram, Twitter, ESPN, WeChat and several others.
A key concern among investors, media and analysts have been concerns about apps for the watch.
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Yet, Credit Suisse analyst Kulbinder Garcha believes that with the new announcements, those concerns can be tabled. "...Apple officially announced the key details around the release of its widely anticipated Apple Watch, an update to its MacBook line up, and ecosystem update," Garcha wrote in the note. "We believe the announcements reinforce the ecosystem advantage that Apple has in the multi-compute market."
Garcha rates Apple outperform with a $140 price target.
Though the Apple Watch is much smaller than the iPhone, developers have taken the form factor and are using notification methods to make consumers' lives even easier. For instance, Uber's app lets users request a car, track its whereabouts and see pictures of the car and its driver.
Instagram, which is owned by Facebook (FB), allows users to browse their news feed, like photos and post emoji comments straight from the Watch.
Other media companies, such as the New York Times and ESPN, allow users to see breaking news and latest headlines directly on the Watch.
Apple officially unveiled the Apple Watch, which comes in two screen sizes, 42mm and 38mm, with price points starting at $349 and ending at $17,000.
Garcha believes Apple will sell 20 million units this year, with an average selling price (ASP) of $400, which he believes "could prove conservative."
The aforementioned improvements, coupled with a new MacBook and updates to the MacBook Air and MacBook Pro, could help drive earnings upside, Garcha stated. This comes as the iPhone maker continues to expand its presence in nearly every facet of tech, taking developers and its ever-expanding ecosystem with it.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
