Apple launched the Apple Watch – wearable smart phone tech, competitor to multi-billion giant FitBit, millenial-accessory extraordinaire – to very high hopes. As the Inquisitr has previously reported, the Apple Watch was one of the biggest technology launches in history, selling some two million units over the course of two weeks and adding an extra positive note to Apple’s record profits this year.
Unfortunately for Apple, a new report from Nasdaq is showing that the Apple Watch launch may have been all sizzle and no steak.
The report’s data comes from Palo Alto based market research firm Slice Intelligence, and shows that, since the initial rush on the Apple Watch, less than 20,000 units have been sold per day; less than 10,000 on some. A follow-up to the report discusses some of the possible causes of the decline, among which one quote from Endeavor Research analyst Richard Windsor stands out.
“Apple’s failure to come up with a compelling use to which the device could be put is the single biggest reason it is underperforming.”
Windsor went on to note that the hardware itself isn’t particularly responsible for this; any wearable will “massively underperform the hype” while customers search for an actual use for the device. Whether or not Slice’s data is completely accurate, or whether the Apple Watch will make its projected goals, Windsor’s comments highlight the fact that Apple is, for a change, failing in their marketing; they’ve been unable to convince their customers that they should want an Apple Watch.
Dispatch Times also notes that the types of Apple Watch leaving the shelves are going to impact Apple’s total profits on the Watch: two-thirds of the Apple Watches sold have been the (relatively) bargain-priced Sport edition, which starts at $349. Meanwhile, fewer than 2,000 have been sold of the $10,000 18-karat-gold Apple Watch Edition.
That being said, many analysts disagree with both the data and what it means. The Motley Fool is reporting that Slice’s data-gathering methods are flawed, suggesting that the Apple Watch e-receipt data used by Slice to draw its conclusion may not take into account brick-and-mortar store customers. It also may not account for international Apple Watch sales. They also suggest that, as more customers have a chance to interact with the Apple Watch through acquaintances, sales may pick back up.
Forbes also agrees with these conclusions, additionally noting that the Apple Watch wasn’t even available in stores until mid-June, and that the chart shows its biggest dip when it did become available, suggesting that many customers would prefer to purchase the Apple Watch in-store. Further, much of Slice’s data was retrieved from a shopping assistance iOS app, suggesting that many of its users lean to the frugal side of spending, which doesn’t lend itself to purchase of essentially a $350 toy.
Forbes is standing by their prediction of 17.5 million Apple Watch shipments for CY 2015. Other analysts and tech experts think that the Apple Watch is a confirmed flop. Either way, we’re past the halfway point of the year; time will tell soon enough.
[Photo by Pablo Cuadra/Getty Images for Apple]