Apple announced details of its highly anticipated new watch Monday, but one prominent analyst told CNBC he's not bullish on prospects for sales of the wearable, at least this year.
Gene Munster, who covers Apple for Piper Jaffray, is expecting the tech giant will sell 8 million units this year, as opposed to the Street's consensus for 14 million.
"We think it's best to be conservative because a lot of the value in this is going to be determined by the app developers and that's just starting out," he said Monday in an interview with "Power Lunch."
The average person is likely thinking about the Apple Watch as a gift, Munster said. He thinks the first big breakout quarter will be in December 2016.
"This is going to be a huge category for Apple but it is going to take some time to get some momentum behind it," said Munster, who has an "overweight" rating on the company and a $160 price target.
The Apple Watch starts at $349. Midrange versions start at $549 and its most expensive model, the Apple Watch Edition, starts at $10,000.
The watch allows users to receive calls, communicate by tapping on the interface and features a variety of apps measuring the wearer's health and vital signs.
Munster doesn't think the watch's success is priced into Apple stock right now.
"As soon as it actually takes off, I think that's going to be upside to the shares," he said.
The watch also will have higher margins than the iPhone, Munster pointed out, so while units sold may not be that impactful, a slight lift in margins will be good for the stock.