What you need to know
- Apple Watch could grow sales 10X with certain features and price points.
- Bernstein analyst Toni Sacconaghi stressed a sub-$250 price point with more health features.
- Apple currently sells the Apple Watch Series 3 for $199 with a few key health features.
In a report from Ped360, Bernstein analyst Toni Sacconaghi stressed that the market for the Apple Watch could be ten times larger if Apple was to "offer reduced but focused functionality at a lower price point."
"Bernstein analyst Toni Sacconaghi reiterated a Market Perform rating and $285.00 price target on Apple (NASDAQ: AAPL) on the belief that the Apple watch market opportunity could be 10x larger than it is today if the company begins to offer reduced but focused functionality at a lower price point."
According to Sacconaghi, the price point to reach for such an Apple Watch would be $250.
"We see an opportunity for Apple to offer a less expensive (say under $250) 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)".
Apple already sells an Apple Watch for under $250. The company has been selling the Apple Watch Series 3 for $199 since September of last year.
What Sacconaghi seems to be suggesting here is that Apple brings some of the features from the more expensive Apple Watch to the low-cost Apple Watch. He specifically mentions the "hard fall detection, a feature that is currently reserved for the Apple Watch Series 4 and Series 5.
He also mentions features that currently don't exist on the Apple Watch yet, such as monitoring blood sugar levels and coronavirus detection.
While the Apple Watch of Sacconaghi's dreams does not exist yet, it certainly could soon enough. Eventually the Apple Watch Series 5 will become the $199 Apple Watch, and future models after it. A sub-$250 Apple Watch with all of these features is likely to happen - it'll just take some time.