If Apple launches an entry-level Apple Watch priced below $250, the line is expected to sell ten times as much, Bernstein analyst Toni Sacconaghi said.
Previously, the analyst had often made surprising remarks, such as "Apple's best days are over," but had also made some jokes.
As a "senior technology research analyst," Sacconaghi believes Apple can easily achieve its goal of increasing Apple Watch sales tenfold by simply chopping some features.
Sacconaghi said in a report:
We see an opportunity for Apple to offer a less expensive (say <$250), more focused, and easier to use/read (esp. for seniors) wearable that would be positioned as an essential health monitoring device, which could warn consumers about potential health issues (e.g., a hard fall, serious cardiovascular or circulatory issues, blood sugar levels, or maybe even coronavirus).
We believe such a market could be huge (500M for continuous monitoring candidates, and potentially billions who might want to better track their health/key vitals).
What Sacconaghi didn't expect, however, was that the company didn't need to launch a new product with streamlined features, as most of the features he wanted had already been implemented on the older Apple Watch Series 3.
Interestingly, many dealers are already hanging up prices under $250 on the Apple Watch Series 3 (say $199), and the latest Apple Watch Series 5, which supports fall detection, is also just $299.
Sacconaghi reiterated a Market Perform rating and $285.00 price target on Apple, while Apple is trading for $325.
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