This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Things Apple Doesn't Want You to Know

5. Apple TV and the iWatch may not be runaway hits.

SICA Wealth Management Founder and CIO Jeffrey Sica doesn't see much corporate enthusiasm for the Apple TV and the upcoming iWatch. That signals to him that the company might not see the products as having the growth potential many would expect. The products are still developed and supported by Apple only because the consumer tech giant wants to keep an arsenal of products available to its core consumer base.

"Apple is not showing any building excitement for the Apple TV and an Apple iWatch, which makes me believe that these products don't have the potential people expect," Sica said.

Apple TV generated more than $1 billion in revenue for Apple in 2013, but that pales in comparison to what the other iDevices are doing, so it's fair to say that the future of the product may not be a runaway hit. However, Cook has been adamant that Apple is interested in doing more with television, though those plans aren't exactly clear.

Morgan Stanley analyst Katy Huberty has put some public projections on what the iWatch could do for Apple in terms of revenue, and while it's likely to be bigger than the iPhone or the iPad in its first year, that's coming off a much, much larger fan base.

"Our working assumption is that iWatch will largely be adopted as an accessory device and therefore sold into the existing customer base like the iPad rather than to new customers like the iPod or iPhone," Huberty wrote in a Feb. research note about Apple. "Assuming an ASP of $299 and Apple customer base penetration rate similar to the iPad, we see up to $17.5B of revenue in the first 12 months compared to $12B for the iPad and $2.5B for the iPhone."

See Also: Tim Cook: TV Is 'an Area of Intense Interest'

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $131.86 1.70%
GOOG $537.54 0.98%
GOOGL $552.23 0.92%
FB $80.13 1.00%
TSLA $246.93 -0.21%


DOW 18,153.81 +112.27 0.62%
S&P 500 2,119.34 +15.14 0.72%
NASDAQ 5,079.4970 +46.7460 0.93%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs