For months, people have been debating the possible killer app for the Apple Watch. UBS analyst Steven Milunovich said Thursday that voice messaging could be it, at least for some users.
Moving voice messaging to Apple’s (NASDAQ:AAPL) smartwatch from the iPhone seems like a logical move, he said in a research note. Voice memos on smartphones are very popular in countries like Argentina and China, he said.
Apple CEO Tim Cook told UBS that in China you see people walking down the street speaking into their phones and sending voice rather than text messages. Porting this capability to the watch makes sense as it is easier to send a voice message from a device already on the wrist than pulling out a phone, Milunovich said.
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Voice memos also are popular in Argentina, he said, noting an article on the Vice Media website Motherboard.
“On any given block in Buenos Aires, you are likely to see someone speaking into their phone but not on it; talking to someone, but not necessarily with anyone,” contributing writer Kari Paul wrote on Motherboard. “I recently visited the city, and was struck by the fact that it seemed like all the citizens were walking around expressively talking to themselves. In reality, most people are perpetually sending voice memos to one another.”
She said their voice messages are sent almost exclusively through Facebook (NASDAQ:FB)-owned WhatsApp. Facebook purchased WhatsApp for nearly $22 billion in October 2014, Reuters reported.
Making voice memos a central app on the Apple Watch could help boost sales of the wearable device, Milunovich said.
“Apple Watch is off to an OK but not fantastic start, with search volumes reflecting less interest than in previous Apple and consumer electronic product introductions,” Milunovich said. He forecasts sales of 11 million Apple Watch units in fiscal 2015 ending Sept. 26, and 31 million in fiscal 2016.
Milunovich rates Apple stock a buy with a 12-month price target of 150. Apple stock was down a fraction near 128 in afternoon trading on the stock market today.
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