Apple Watch inventory may be severely limited right now, but that won't stop it from becoming the best selling new device in the company's history. Cantor Fitzgerald analyst Brian White thinks Apple Watch will outpace all other new product launches, and he says Apple is innovating on a scale unlike anything it's done before.
Analyst says Apple Watch to be the company's most successful product launch ever
"We believe Apple is in the midst of a transformational, super cycle with a notably stronger iPhone cycle and initial strength around Apple Watch," Mr. White told investors. "Adding to the allure of this cycle is the ramp of Apple Watch that we believe will prove to be the best selling new product in Apple's history (within first 12 months)."
He added that the iPhone 6's larger display and growth in emerging markets has helped drive up momentum for iPhone sales.
Apple Watch pre-orders launched on April 10 and within minutes were backlogged several weeks. Deliveries began trickling out on April 24 as Apple has been working to ramp up production to meet demand.
Mr. White also sees big potential for Apple in the television market. Apple TV has been slowly adding more channels and now offers HBO as a stand alone subscription instead of requiring a cable television package.
Apple CEO Tim Cook alluded to his company's plans for the entertainment industry during the company's quarterly earnings report earlier this week saying, "We're in the early stages of major, major changes in media that are just going to be really great for consumers and Apple can be a part of that."
Mr. White used reports of an Apple car project to underscore his belief that innovation is in full swing at the company. He thinks that could lead the company down the path of personal robotics, too.
Because of the potential success of Apple Watch, Mr. White raised his target price for Apple's stock from US$180 up to $195. Apple is currently trading at $129.82, down 0.74 (0.57%).
[Thanks to Bloomberg for the heads up]