Here’s Exactly Why Apple Will Make an iWatch

August 26, 2014 9:29 AM EDT

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Ironfire Capital‘s Eric Jackson achieved an admirable density of insight Monday in an e-mail exchange with Asymco‘s Horace Dediu.

“The interview is vintage Horace,” writes Jackson. “So much to think about in so few words.”

A few excerpts:

On sapphire: “I expect Sapphire will become a signature feature across many products. I don’t know if they will have capacity to deploy on iPhone this year but on a watch it’s essential… It’s a significant material because it allows design freedom in new directions, especially curved (concave) touch surfaces that retain a jewel-like feel. This has Jony Ive [written] all over it.”

On prices: “I think Apple holds a black belt in pricing. They seem to define their position in the market by anchoring certain prices and ‘owning’ them… The average selling price (ASP) I expect to remain constant on a year-long average.”

On the ‘iWatch’: “I will be shocked to the core if it does not run iOS. It is my opinion that making iOS work on it is the entire reason Apple is sweating this segment. They are in it because they are trying to make a platform product with a novel user experience and all the power of an ecosystem run on a wrist.”

For the rest of the story, please go to Fortune.com.

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