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Apple Watch demand slowing down significantly, report says
With users unable to just walk and play around with the watch, Apple lost a core part of its retail experience.
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Last month, we reported that Apple sold about 2.8 million smartwatches from April (when its Watch first became available) to June. The company is expected to sell anywhere from 15 million to 20 million Apple Watches in 2015 alone. That means out of the initial sale of 200,000 watches a day, the Tech giant now barely scrapes by with 10,000 units.
Although Slice Intelligence talks up its methodology and says it is “high defintion”, it seems (to me, at least) somewhat bogus.
But Apple only got 38% of its revenue from the U.S.in its most recent fiscal year. (NASDAQ:AAPL) hasn’t been able to release official sales numbers for the Apple Watch. That said, those markets also included Apple’s biggest worldwide markets, such as China, Japan, and the United Kingdom. Similar features might be seen in this Apple Watch too. Interest in the watch has declined to alarming levels.
Wall Street has been desperately trying to work out how well the new watch has been selling, but Apple has been refusing to say. A stark comparison from the 30,000 to 35,000 units per day the company was pushing in the weeks after its launch. That’s 3.3 million iPhones per day. Of course, iPhone and iPad sales have soared far higher in subsequent years – but as the Apple Watch improves, it could also grow in popularity. Investors have had to rely on independent market research for updates on the progress of Apple Watch on the market. I don’t have the exact prescription for why this is the case, but sales estimates like these from Slice are proof that Apple Watch isn’t resonating with consumers and that Apple hasn’t made the case for why they should have one.
Apple will not have been helped by extremely constrained supply, which has seen it only just start fulfilling some orders placed in April.
Apple’s watches are not selling in the US, Slice Intelligence has concluded.
Another point some folks might argue is that Apple Watch had a terribly flawed rollout.
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The firm gathered these findings based on digital receipts customers receive via email after their purchase. “It’s a lot. At the very beginning, we decided we weren’t going to release data on the Watch”. It is not clear if Apple will reveal the sales numbers at the next quarterly earnings call.