JP Morgan Comments On Apple iWatch, Payment Deal With Credit Card Companies

In a note dated September 2, JP Morgan analyst Rod Hall provided insight into the outlook for Apple's AAPL upcoming iWatch, as well as a look into the new deal struck between Apple and the three major credit card companies for Apple's iPhone wallet plans.

JP Morgan currently rates Apple at Overweight.

iWatch
Hall cited sources as saying customers awaiting the release of the Apple iWatch should expect a range of prices among different models, including lower priced versions. He also noted that a $400 price point has been kicked around by Apple executives. However, he said it is unclear if the company will settle on a price by September 9, the expected iPhone 6 launch date.

Hall commented, "We wouldn't be surprised to see a fairly wide range of prices for the iWatch including higher priced models. We also note that $400, while expensive, is well below the prices routinely paid for luxury brand watches worn by many in Apple's likely target demographic."

Credit Deals
Hall noted that Apple's iPhone 6 is "widely expected" to include a NFC chip that will allow for mobile payments on the device. Additionally, he pointed to recent reports by Bloomberg and re/code as saying Apple has deals with Visa, MasterCard and American Express for its iPhone wallet plan.

Hall commented, "We see the payments market as a potentially very large opportunity for Apple financially, likely significantly larger than the iWatch and rivaling our iAnywhere idea if not somewhat larger (depending on where Apple chooses to play in the payments stack)."