As it is widely known, Apple is a firm that goes straight to the market, with the advantages of getting data from their consumers, cutting the “middle men”, and increasing their brand value by customizing their products in counted occasions. Its operations team has seen an advantage and changed its processes while taking risks by planning to introduce a new gadget to the market – the iWatch. Thus, it is also in their business plan to release another innovative gear- the iPhone 6, with which they expect to gain more profits by selling it at a higher price by focusing only on a specific target market.
Because it is not in the mind of the Apple team to produce the iWatch in terms of revenue, Gene Munster, analyst with Piper Jaffray, said it is aimed to “demonstrate Apple’s ability to innovate and potentially lead to a more meaningful new product category in wearable tech”. As this gadget’s price of $350 is not aimed to target a big market, Apple would have about $790 million in profit by selling 7.5 million units in the first year.