AAPL Stock – Just Forget About the Apple Watch Already!

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Apple Inc. (NASDAQ:AAPL) fanboys have been eagerly awaiting the tech giant’s smartwatch release, and at long last the Apple Watch is finally out there for purchase.

AAPL biggest stocks Stock Predictions and NewsBut AAPL stock investors shouldn’t be quite so giddy over the release.

Sure, there have been no shortage of breathless reports about Apple moving 1 million watches in its initial release — and some analysts predicting as many as 30 million units moved in the first 12 months after launch.

However, the important thing to remember is the scale of this company — and what bottom-line impact, if any, this gadget will have on AAPL stock.

Consider that in the words of one CNBC report, AAPL stock holders should admit the Apple Watch “will contribute little to the technology juggernaut’s revenue pie this year.” Matt Krantz over at USA Today called the Apple Watch sales a “little more than a rounding error.”

Apple Watch Sales, By the Numbers

Do some simple math and you’ll figure out why: A million units at about $550 a pop is an initial launch of $550 million, and the 30 million units across the next year will tally $16.5 billion — big numbers for any other company, but not when you consider Apple did $74.6 billion in sales last quarter and will finish the fiscal year with about $226 billion in sales.

Or percentage-wise, the Apple Watch launch at 1 million units would have accounted for just 0.7% of revenue last quarter.

And if AAPL stock can pull off 30 million units sold in the next 12 months, that cash will account for just 7% of total annual revenues.

Nothing to sneeze at, sure … but not a reason to buy or sell Apple stock in and of itself.

AAPL Stock All About the iPhone

Besides, let’s acknowledge that some of the critical reception for the Apple Watch hasn’t been all that grand — and if you’re simply playing the sentiment around the gadget as a reason to buy AAPL stock, there are just as many reasons to be worried as to be be optimistic.

One CNET reviewer talked of his experience in an Apple Store thusly:

“There was no sense of style, no atmosphere of luxury. It was just a row of watches in an Apple store and an attitude of ‘we’re going to sell bucketloads of these, aren’t we?'”

There are also real bottlenecks over shipping and delivery. While some might claim this adds to the exclusivity and anticipation, let’s acknowledge that AAPL stock investors have been aflutter about the prospect of a watch for years. Do we really need more hype by now to stoke sales?

The bottom line is that Apple is still all about the iPhone — and AAPL stock investors would do well to remember this. After all, 60% of its sales comes from this single product, and the ability to sustain momentum after the iPhone 6 launch is much more important to the success of AAPL this year than any smartwatch shenanigans.

So keep your eyes on the price — the iPhone — if you’re an AAPL stock holder, and don’t get caught up in the noise of the Apple Watch.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/04/aapl-stock-apple-watch-sales/.

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