While watches may not be as sexy a product category as, say, HD Televisions, Citigroup analyst Oliver Chen relays that watches may actually be a more lucrative market for Apple.
While TV's obviously sell for a lot more money, the HDTV industry is notorious for razor thin margins. Watches, in contrast, can generate gross margins at upwards of 60%, a figure which is much more in line with Apple's current product lineup than the single digit margins often associated with HDTVs. All told, the watch market may be a a $6 billion opportunity for Apple to grab ahold of."
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