Apple Watch To Compete For $16.5B Market By 2020

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Apple Watch To Compete For $16.5B Market By 2020
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With the Apple Watch set to ship in April, analysts and experts are busy calculating the potential market for the upcoming wearable

The Apple Watch is expected to add marginally to Apple’s revenue and only be a fraction of the iPhone sales unit, but in the next four years, the company is expected to participate in a wearable market worth $16.5 billion, according to Liam Tung of ZDNet.

Different estimates for wearable market

Analyst firm Ovum estimates shipments of 24 million units in 2014 surging to 50 million in 2015, says Tung. The analysis firm is expecting the consumer wearable market to reach 394 million units, including smart clothes, by 2020, representing a compound annual growth rate of 60%.

Additionally, revenue from “multipurpose” wearables, which includes the Apple Watch, is expected to be 62% of the $26.6 billion total wearable revenue in 2020. This means Apple would be competing for share in a market worth $16.5 billion a year. Additionally, the analysis firm is suggesting the multipurpose wearable to total 31% of a total installed base of 176 million by 2020.

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It is largely believed that the Cupertino, Calif.-based company will not reveal separate sales numbers for the watch when it hits retail shelves this spring, but according to industry watchers, the number will be somewhere in the range of 10 million to 30 million units in the first year, says Tung.

Canalys, in its report, states that total wearable shipments are expected to reach 43.2 million units in 2015, including 28.2 million “smart bands” and 15 million basic bands. However, Gartner has estimated 91.3 million wearables to be sold in