I Know First Review: The Apple Watch is Helping in Times of iPhone Struggles

I Know First Review

I Know First Review

 

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store.

I Know First also wrote an Article about Apple on Oct 12th 2015. The article argued that Hedge fund managers are nervous that Apple is still too dependent on iPhone sales. The iPhone 6s uptake is slower than the iPhone 6. since this forecast the stock price has decreased 6%.

Lately the company has been declining, as Wall Street analysts have realized about potential weakness in iPhone sales. After all, in the past month their stock has lost nearly 10% of its value

But despite all the noise, things are really not so bad. Hey, just Friday, AAPL did get some much-needed good news from International Data Corporation (IDC).

The firm has published an extensive report on the wearables market. And yes, it looks like the Apple Watch will be a big winner. Overall, IDC predicts that the market will jump from 80 million devices in 2016 to 111.1 million by 2016. Oh, and by 2019, the firm believes that shipments will reach a whopping 214 million.

As for the watch category, IDC expects that the Apple Watch will capture a hefty 61.3% of the market share for this year, followed by Alphabet (GOOG, GOOGL) at 15.2%.

The research firm also believes that this leadership position will be maintained for some time. By 2019, IDC predicts 45.2 million shipments of the Apple Watch, translating into a market share of 51.1%.

There has been a lot of worries in the past months but the giant tech company had amazing results results. Lets look at the numbers: they had a rise in revenues of 22.3% to $51 billion and net profits came to $11.1 billion.

forecast appl

(Figure 1: APPL  forecast 11th October ’15) 

To create more confidence we can also check previous forecasts of AAPL where the algorithm was right.

forecast appl1

We can check the forecast of Sep 20 to Dec 20 where the algorithm predicted a fall in the stock price. As the forecast said the price decrease 6.54% during this period.