Despite of new models Apple Watch sales expected to drop in 2016
Although 2016 is the year in which Apple Watch has been on the market for the entire year, it is expected that year-over-year sales will go down, not high. According to a report by Ming-Chi Kuo (KGI Securities) Apple Watch deliveries have declined by 15-25%, effecting the annual sales forecast of the company.
- Fariha Khan
- October 5, 2016
Reasons of waning interest of customers in Apple Watch
In its report, KGI cites 4 reasons for comparatively limited interest in Apple Watch: poor battery life, no clear killer app, the experience multi-touch provides on a wearable and requisite on iPhone.
The company predicts a fall in the short-term grounded on the existing delivery prototypes:
Based on these considerations, we revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015) writes Kuo. We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months).
Downsides and limitations
Other than serving the fashion purpose, we can say that health and fitness tracking is the killer app type, however, battery life is normally same in version 2 with the current need to charge nightly or face the possibility of a dead battery prior to the following night. GPS in Series 2 models has amplified iPhone freedom for fitness tracking, yet cellular is essential for most features. The multi-touch point of KGI is difficult to break down, however watchOS 3 cleans up the experience of the users, lessening the dependency on concealed Force Touch motions.
KGI forecasts the inexpensive Apple Watch Series 1 model having similar externals as the first-generation range plus the faster chip of Series 2, will not perk up sales. KGI forecasts a minor bump especially for the advanced Apple Watch Series 2.
The series 2 watches that were announced by the Apple Watch sometime back looks much like the device Apple initially launched in 2014.
The challenge of assessing Apple Watch Sales Performance
It is tough to gauge Apple Watch sales performance despite KGI’s predictions as Apple doesn’t break out the product as a distinct class as it does for iPhone, iPad etc. Apple Watch income is lumped in with iPods, Apple TV, and additional accessories.
Apple has planned to reveal its Q4 2016 results later in October. They are likely to include statistics for first Apple Watch Series 2 sales and iPhone 7 sales.