Apple (AAPL) iWatch Might Launch By September, Says Analyst

Apple (NASDAQ: AAPL) is expected to launch its iWatch before the end of 2014, possibly before September, said analyst Brian J. White of Cantor Fitzgerald. Comments follow meetings with tech contacts in China and Taiwan. White also discussed smartphone trends.

"During our meetings and attendance at three tech trade shows, we had the opportunity to interact with dozens of companies with new wearable products. Most of these companies were focused on wrist-related devices such as smartwatches (average selling price of $65) and fitness bands (average selling price of $25). Also, our trip supports our view that Apple will launch the iWatch before the end of CY:14 and possibly in FY:14 (ending September)," said White.

"Although 3G subscriber additions in China have been a bit soft this year and we believe certain vendors are experiencing inventory corrections, the expectation around China's smartphone ramp this year was strong and helped by the TD-LTE 4G ramp. Our contacts discussed expectations of approximately 40-50% smartphone growth on average this year in China," continued the analyst. "During our tech tour, we sensed little excitement around near-term demand trends at Apple, and this softness is reflected in the much weaker than seasonal performance for our Apple Barometer in 1Q:14. That said, we sensed a high level of enthusiasm in China around a larger-sized iPhone with the iPhone 6 and we expect this launch will coincide with the 4G TD-LTE ramp in China during 2H:14."

Cantor Fitzgerald has a Buy rating on Apple with a price target of $777.00

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $521.68 yesterday.

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