Apple Watches Discounted by as Much as $100 Spur Holiday Sales – Maybe

Dedicated Apple fans who stayed awake for the late night Internet launch of the Apple Watch were roundly discouraged when it appeared that all of the most popular and coveted models were unavailable just minutes after the sale went live, with wait times of up to several months to receive the device imposed on even those who showed up right at the prescribed launch hour. Researcher Canalys projects that Apple has shipped seven million Apple Watches since its introduction this April – well shy of some Wall Street analysts’ expectations for Apple’s first new product category since 2010.

Now, FBR Capital Markets analyst Daniel Ives has indicated that the Apple Watch is seeing “signs of life”. Several retailers offered Black Friday deals on Apple Watch, especially on the entry-level Apple Watch Sport that costs about $350. While Apple doesn’t breakout sales of its smartwatch, researcher IDC had Apple shipping 3.6 million units of the timepiece during the second quarter.

Apple, as usual, is keeping quiet on sales numbers, but the company did say in July that the Apple Watch outsold the first-generation iPad in its first nine weeks in the market. Apple’s flagship product, the iPhone, still is the key to revenue growth and its performance depends users upgrading more frequently, Munster said. Meanwhile, Cupertino still won’t reveal specific sales figures for the Apple Watch, citing competitive reasons.

Analysts like Ives said wearable technology could be the next big trend in computing, representing a $20 billion market opportunity for companies like Apple over the next three years.

Ives used anecdotal evidence and checked with Apple retail stores on Friday to reach his conclusions. In the USA, the device was discounted by as much as $100 at Best Buy. The Apple Watch was also one of the strongest selling products for Best Buy during Black Friday.

Advertisement

“We ultimately believe that an uptick in sales/interest in the Apple Watch, heading into the holiday season, will have positive implications for Apple”, Ives wrote.