An Apple smartwatch could add as much as $9 billion in revenue in the first 12 months after its launch, said Amit Daryanani, RBC capital markets analyst, on CNBC's Squawk on the Street Tuesday.
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"It's an accessory device. At the end of the day it's something you probably will buy along with your iPhone to tap more into the apple ecosystem," Daryanani said.
While the iconic tech company had not confirmed that it is working on a watch, rumors are rife among analysts and industry watchers that Apple might launch such a product as soon as the fall.
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Daryanani said that based on a 35 percent attach rate to annual iPhone sales, he estimates there would be about 40 million or more smartwatch units sold in a 12-month span. With each device estimated to be priced at about $175 to $200, he said the company could generate $7 billion to $9 billion in revenue and boost its earnings per share by as much as two dollars.
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As for what features one could expect from an Apple iWatch, Daryanani said the device may allow users to sync to other Apple products, like iMessages and iCloud. It may also have music, maps, location-finding capabilities and near field communication technology, which could enable contactless payments.
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