Get Ready for the Apple Watch to Start at $500

Apple, Inc. (AAPL: Nasdaq) has already quoted it smartwatch to begin at $349 but there are some analysts who think the price of the watch will come in way higher than that, if not closer to $500.

Apple has always come to the market focused on technology. The next big thing like Apple Pay. Now they are focused on design. Both the accessories and the bands have a much higher margin here and this is what Apple will focus on.  Should Apple successful branding itself as a designer in the clunky smartwatch industry, then it would be a success. It could be a small catalyst for the company’s stock as well.

Still, how well AAPL stock does is dependent on the iPhone. Apple is still a one trick pony that relies on iPhone sales and for the next two or three quarters there is room to grow with iPhone sales. For the next quarter or so iPhone sales should beat Street expectations, but then slow down.

Right now, there is not a lot of interest in an “iWatch,” for lack of a better term. Apple needs to sell and focus on apps that will make their watch stand apart from the crowd in order to generate interest. Should Apple be successful and design apps to get consumers excited, then the sales trajectory of their smartwatch will change.