Apple Watch Could Take Half Of The $200-plus Watch Market, Spelling Trouble For Fossil, Movado

Despite mixed reviews of Apple Inc.'s Apple Watch, the smart watch could cause "significant" level of disruption to traditional fashion watch makers including Fossil Group Inc. and Movado Group Inc. , said KeyBanc analyst Edward Yruma. Apple could sell over 20 million Apple Watches this year, which would be nearly half of the total $200-plus watch market, Yruma said. "Both Apple's and investors' expectations are for Apple to either decimate the watch market or expand it by nearly 50% in the first year," he said. "Pre-orders suggest strong demand among the core customer base." Apple Watch's entry comes as fashion watch sales have slowed. Yruma cut his profit estimate on Fossil for this year to $5.46 a share from $5.74 a share and to $1.92 from $2 a share for Movado. Fossil fell 3% in early Monday trading. Movado dipped less than 1%