These estimates are based on the expected unit cost of $299 and sales comparable with the current sales of iPads. For comparison, in the first year sales of Apple's iPad generated $12 billion of revenue, while iPhone made 2.5 billion. As potential buyers of iWatch are primarily the existing users of Apple devices which would use it as the auxiliary device.
But these expectations could be affected by the potential production problems and the inability of the market to supply sufficient quantities of the device.

[Ed – Sadly for the analysts in question these numbers are a baseless prediction. They are assuming several things that are not based in any real numbers. The first is the number of people that actually are interested in a “smart watch”. As Samsung found out recently there is no guarantee that people will buy this regardless of how good it looks or the brand on it. Although the concept of wearable computing will ramp up it is still in the very early stages and only functions as a companion device to an existing smart phone.

It is much more likely that Morgan Stanley has a horse in this race and needs the iWatch to be a success. Because of this they have built a very shaky report to try and get investors excited about the potential new product. With the current market it is unlikely that this ploy will work…]

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