Opinions are divided on whether or not the Apple Watch will add to the fortunes of Apple Inc. (NASDAQ: AAPL). The division isn’t equal however, as arguments for another huge success seem to outweigh more negative views.

Among the strongest support for the Apple Watch to date comes from research firm Strategy Analytics which said today that it expects total sales of smartwatches to reach 28.1 million in 2015 and the firm further expects that Apple Watch will account for 15.4 million units or about 55% of the total. In 2014 a global total of just 4.6 million units was sold.

Neil Mawston, executive director at Strategy Analytics, said:

The Apple Watch is the catalyst to ignite the global smartwatch market. Apple’s famous brand, loyal fan base, deep retail presence and extensive apps ecosystem will ensure healthy uptake for its Watch. However, Apple’s first-generation Watch is not yet perfect. For example Apple’s Watch hardware design is arguably less attractive than some rival models such as the Huawei Watch, battery life may not be as long as many traditional wristwatch owners are used to, and Apple’s premium pricing may be challenging for mass-market consumers.

If Mawston is right, at an average price of $400, the 15.4 million Apple Watches would rake in $6.16 billion this year. The basic Apple Watch will have a price tag of $349 when it arrives next month, but Apple will have some more expensive models and those could also sell very well.

The pricier Apple Watches may get some competition from Swiss watchmakers who are releasing their own smartwatches later this year. The traditional watchmakers are adding smartwatch features like fitness tracking to existing watches while Apple is building another platform for its apps ecosystem. Betting against Apple in this market is not a pathway to fame and fortune.

The other side of the argument was taken by analyst Sherri Scribner at Deutsche Bank who was cited at Barron’s today saying that the Apple Watch won’t make much difference to Apple’s bottom line and reiterated the bank’s Hold rating on the stock and its $110 price target (the stock closed above $128 on Wednesday).

Apple’s stock traded down about 1.5% in the mid-afternoon on Wednesday at $126.61 in a 52-week range of $73.05 to $133.60.

ALSO READ: Oppenheimer Gets Even More Bullish on Apple and Its Watch

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.