In a brand new investor be aware immediately, Bernstein analyst Toni Sacconaghi has a weird suggestion for Apple: promote an Apple Look ahead to underneath $250. Why is that weird? Nicely, you possibly can decide up the Apple Watch Collection 3 directly from Apple, in model new situation, for $199.
Within the investor be aware (through PED30), Sacconaghi says that Apple might promote 10 occasions as many Apple Watch models by providing a inexpensive mannequin, marketed as “a necessary well being monitoring gadget.”
“We see a chance for Apple to supply a inexpensive (say <$250), extra centered, and simpler to make use of/learn (esp. for seniors) wearable that will be positioned as a necessary well being monitoring gadget, which might warn shoppers about potential well being points.”
Sacconaghi’s pitch is that Apple ought to particularly market this inexpensive Apple Watch to older customers, with well being options that might monitor for “a tough fall, severe cardiovascular or circulatory points, blood sugar ranges, or possibly even coronavirus.”
How large might this market be? Sacconaghi says it might attain billions of customers:
“We imagine such a market could possibly be large (500M for steady monitoring candidates, and doubtlessly billions who would possibly need to higher monitor their well being/key vitals)”
In Sacconaghi’s protection, he appears to be arguing for an Apple Watch that’s inexpensive but nonetheless contains the entire newest and best well being options. Theoretically, this mannequin might forego among the extra tech-focused options, and as a substitute give attention to well being and health. For example, the Apple Watch Series 3 starts at $199, nevertheless it lacks assist for among the extra fashionable options like ECG and fall detection.
What do you consider this argument? Ought to Apple provide a purely health-focused Apple Watch at a sub-$250 worth level? Tell us down within the feedback!
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