Ives surveyed Apple consumers at stores and found that about 70% of people buying an Apple Watch Series 3 never owned a Series 1 or Series 2 watch. "This data point speaks to our belief that the Apple Watch Series 3 could be a 'game changer' release for Cupertino to open up this wearables category for the coming years," Ives noted, according to multiple reports.
The Series 3 Apple Watch has cellular connectivity, a feature 80% of Ives' respondents said they'd opt into and one not previously available on older models. The feature lets users make calls and connect to a network without a handset.
"While Apple Watch sales still represents low to mid-single digits of overall revenue, this wearables category is an important product for Apple to further penetrate its massive consumer installed base and lay the groundwork for new product lines/technologies over the coming years to complement its 'bread and butter' iPhone franchise growth," Ives added.
Apple stock was slightly lower by 0.1% to $160.30 in early afternoon trading Wednesday.
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