Apple Inc’s (NASDAQ:AAPL) Watch Shipments Will Decline Despite The Lower Prices: Says, Analyst

Apple Inc (NASDAQ:AAPL) Apple Watch happens to be the only wholly and new product category to be launched under current the current company’s CEO Tim Cook. It may not be one of the products that drive the company’s bottom line, but there all reasons to give it a close tracking given its latest sales research report by KGI Securities analyst Ming-Chi Kuo.

The analyst says that the new Series 1 and Series 2 of the Watch models have various challenges that may impact on the sales in the long run. Some of the very notable ones include poor battery life, a heavy reliance on the iPhone and lack of “killer” applications. Kuo also adds that the multi-touch UI may not be the ideal solution for wearable devices.

2016 Apple Watch shipments cut by 15-25%

The Apple Watch has been on sale since April 2015. As a result of all the outlined shortcomings, the sales have not been good. The company sold 1.6 million units during Q2 2016. The number of units is down from 3.6 million sold in the second quarter of 2015 according to IDC estimates. This has led to a revision of shipping estimates from 10 to 10.5 million units to 8.5 to 9 million units.


Kuo wrote, “We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months).”

Apparently, it is not easy to tell how many of the wearable devices have been sold since April of 2015 given that the company hardly breaks down its Watch sales numbers. Nonetheless, it is also of importance to note that sales estimates can sometimes vary wildly.

Competition of the wearable’s market

There is an obvious competition of the wearable devices in the market which is apparently dominated by less capable devices from Fitbit Inc (NYSE:FIT). Some of the company’s products the likes of fitness trackers can take the similarities of iPod because of their essential minimalist functionality and outstanding design.

The situation only presents a highly competitive scenario for Apple Watch, which is an analog of the first Smartphone before the entry of iPhones. Seemingly its presence has not had any impact on Fitbit’s numbers which have been thriving in the second half of 2016 and through 2017. Meanwhile, Apple closed its trading session at $112.52, which was a fall of 0.53 or 0.47% compared to the previous day.

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