Consumers are not yet sure what to make of the Apple Watch, and sales might not ramp up until 2016, Piper Jaffray's Gene Munster told CNBC's "Squawk Alley" on Monday.
A Piper Jaffray survey shows just 7 percent of iPhone users intend to buy an Apple Watch when the product launches next year. That compares with about 35 percent of iPhone users who said they would buy an iPad after seeing the tablet in action, Munster said.
Piper Jaffray expects Apple to launch the wearable device in the June 2015 quarter, but Munster said sales will probably not ramp up until 2016, when developers launch applications that will get people excited. He noted that Apple only released the developer kit last month.
"Any way you really slice this, this is a setup year," the senior research analyst said. "2016 is where it gets more exciting when the apps start to roll out for the watch."
He reiterated Piper Jaffray's expectation that Apple will sell about 10 million watches during the product's first year on the market. That compares to Street expectations of 15 million, while supply chain feedback suggests 20 million units could sell, said Munster.
"At the end of the day, these interest levels are so minuscule that its hard to put (out) more optimistic numbers," he said.