Maestri said sales of the Apple Watch beat the company’s expectations, yet suspicions remain that demand for the watch could be weak, raising questions as to whether Apple, leaning heavily on the fabulous success of its iPhone, has become “a one-trick pony”.
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Sales of the watch in the first nine weeks had exceeded those of both the iPhone and iPad after they were first launched, he added.
Interestingly, Apple Inc. shares dropped in the extended session Tuesday, shaving off more than $50 billion in market cap, after the tech giant reported quarterly earnings, Marketwatch reported. These results compare to revenue of $37.4 billion and net profit of $7.7 billion, or $1.28 per diluted share, in the year-ago quarter. “The ball is now in the court of rivals, like Samsung, to respond”, Neil Mawston, executive director at Strategy Analytics, said in a statement.
Rajeev Nair, senior analyst at Strategy Analytics, said: “We estimate Samsung shipped 0.4 million smartwatches and captured eight percent market share worldwide for second position”.
So now that the Apple Watch has been released, we’re sure many are curious as to how well the device is doing.
Apple CEO Tim Cook expressed optimism for bigger Apple Watch sales in the second half of calendar 2015, based on a wider geographic reach and expanded retail presence.
The reason? According to Time, it’s all about expectations.
Regardless of what Wall Street thought of Apple’s earnings, Cupertino’s Apple Watch has dominated the smartwatch market.
The shares closed 4.3% lower at $125.14, cutting $50bn off Apple’s market value, with investors unimpressed with its revenue forecasts. In the third quarter, revenue from the Other category increased by nearly a billion dollars. Of course, this does not necessarily mean that Samsung are not selling any devices but is more likely the case of the overall market growing so much due to the Apple Watch.
Apple did not disclose any sales figures for the Apple Watch, which triggered speculation about the sales since its debut in April.
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While digital music and apps are lucrative, industry analysts say they don’t expect Apple to make significant profit from services like Apple Pay and the new streaming Music service launched this summer.
