Apple Forecasts based on a Predictive Algorithm
Google released its first app for the Apple Watch on Tuesday. Google News & Weather had previously been available on the iPhone and the iPad, and the most recent update made it available for Apple’s new wearable device. It gives users a quick summary of top news from the Apple Watch Screen, although it will not allow them to read the entire article or send the content of their article to their phone.
A key component of the Apple Watch has been found to be defective, according to the Wall Street Journal, prompting Apple Inc. to limit the availability of the new product. The taptic engine, one of the key technologies that Apple created for the watch, is designed to lightly tap users on the wrist, a less intrusive way to alert them than vibrating or ringing. Reliability testing of the device revealed that the taptic engines of one of two suppliers started to break down over time, causing Apple to scrap some completed Watches.
The launch of the Apple Watch had a successful start on Friday, with nearly 1 million people preordering the device. While customers will not be able to get their hands on one of Apple’s newest devices until April 24th at the earliest, 957,000 Americans paid to be among the first to get their hands on one. With an average price of $503.83 on the device so far, the Apple Watch is on track to be the company’s biggest new product release ever.
The Apple Watch officially goes on sale on April 24th, but it was made available for pre-order of Friday at 3 a.m. EST, or just after midnight for PST, where Apple is located. Online orders were available to be delivered on this date, but they went out of stock quickly, with some models not being available until June or July in just half an hour. All 10 versions of the entry-level Sport model are unavailable until June according to the website, with some of the less popular mid-tier models available after 4-6 weeks.
Apple will release its second quarter earnings figures and host a live conference call on Monday, April 27. The stock price has skyrocketed over the last year, boosted by strong sales of its newest smartphones, the iPhone 6 and 6 Plus. The I Know First algorithm is still bullish for Apple in the lead up to the next earnings report and the release of the Apple Watch.
The Apple Watch will hit not hit stores for almost another month, but that has not stopped Apple from allowing certain third-party apps to start hitting the App Store already. These apps being released ahead of time will be the ones available right away after the launch of the wearable device, and only major players have released updates for Apple Watch-compatible apps so far. Some examples so far are Twitter, The New York Times, Evernote, and CNN.
Apple held a large event on Monday, where the company released more information on the Apple Watch and unveiled other new products. The Apple Watch will be made available to the public on April 24th, with many of the features of a cellphone. Prices for the Apple Watch Sport will start at $349, while the mid-range Apple Watch will start at $549. The Apple Watch Edition, with an 18-karat gold band, will start at $10,000.
Mizuho Securities Co Ltd analyst Abhey Lamba recently shared in a note that Apple Inc. shares could drop 20% as sales of the iPhone slow in the second half of the year and sales of the Apple Watch fail to make up for the decline. The analyst downgraded the stock from buy to neutral, with a $115 target price. Shares of the company have been falling this year, down 12% from their 52-week high signaling that Apple is in a correction.
Evercore analyst Rob Cihra said in a note to investors that he believe the Apple Watch will be made available for sale in March and will achieve an average selling price of $500. He believes that the product will be a meaningful addition to the company’s bottom line for the remaining nine months of the year, adding 4% to Apple’s calendar 2015 revenue and accounting for 36% of its growth.
Apple announced the Apple Watch in September along with the new iPhones and it is expected to go on sale in early 2015. The Apple Watch will be the company’s first new entry into a major product category since the iPad and will be Tim Cook’s first brand new product since taking over as CEO. With growth hard to come by in other product categories due to market saturation, the success or lack there of for the new gadget will be closely monitored by financial analysts. Many will interpret the success of the launch as if Tim Cook and Apple will be able to continue to succeed in the post-Steve Jobs era. Unsurprisingly, analysts are all over the place when estimating how many of the product will sell in the first year, as wearables is a new market. 
I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.
I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.