People working on the Apple Watch supply chain are said to be expecting a “possible surge in orders” for the second half of 2015, as Apple’s debut wearable device continues to gain momentum in the marketplace.
According to a new report, this growth is linked to the fact that Apple Watch yield rates have significantly improved since manufacturing began, meaning that Apple is finally able to get hold of units of the device in the kind of quantities it would hope for.
One company reporting that shipments have been “growing significantly” since the second quarter is Quanta Computer, which is heavily involved with assembling the Apple Watch and is therefore in a good position to comment on accurate figures. Quanta’s revenue in May grew 14.1 percent on year to reach $2.49 billion — largely thanks to its work on the Apple Watch.
Not everyone is being quite so optimistic, however. A separate report also published today claims that sales of the Apple Watch have thus far been disappointing — with only around 3 million sold since the device first went on sale.
The contrasting report notes that:
“Apple has tried to position the watch partly as jewelry with its selection of bands and gold plating options, but while the value of a high-end timepieces may increase over time, the Apple Watch will decline because it is fundamentally a technology product. Marketing the Apple Watch devices as fine watches seems unworkable.
Wearable devices launched by other vendors including Fitbit, Jawbone and Xiaomi Technology are simpler, have clear product positioning, and support both iOS and Android, which has made them highly attractive to consumers.”
Personally, I’d be more inclined to put stock in the former report. Don’t get me wrong, the Apple Watch has a long way to go until it becomes a “must have” device, but many of the measures naysayers are using to write it off as a failure (lack of interest in Google Trends, for example) are flawed metrics. Even if the 3 million sales number is correct, that doesn’t tell the whole story either, since it discounts the numerous other ways Apple can profit from the Apple Watch.
Companies like Jawbone are bound to get increased interest since Apple has, in some ways, “legitimized” the wearables field, but let’s also not forget that the Apple Watch sold more in its first 24 hours than every other Android Wear device ever.
Source: Digitimes
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
13 responses to “Apple Watch makers expecting ‘surge in orders’ for second half of 2015”
Going to be a lot of Apple Watches under xmas trees this holiday.
Walking up Terry Ave. in downtown Seattle yesterday during noon hour, my friend and I noticed at least 10-12 people wearing Apple Watch.
If you could use extra payment in the range of $50 to $300 a day for doing simple work over internet from your house for 3-4 hrs a day then check this out…
Yeah, bs. You accurately managed to spot an Apple Watch on 10-12 people’s wrists walking along with your “friend”? GTFO, liar.
All the articles I’ve read say the AppleWatch is a flop when it comes to sales. Weren’t some analysts projecting 20 million or so AppleWatches for 2015 and not even 5 million have been sold. Wall Street claims no one is buying AppleWatches and that’s why the stock has completely stalled. Look for another Apple target price downgrade due to failed AppleWatch sales expectations. It’s time for the cries to dump Tim Cook to start because they’re blaming him for AppleWatch’s supposed failure.
HAHAHAHAHAHAHAHAHAHAHAHA
If Apple Watch is FAILURE, HOW DO YOU DESCRIBE ANDROID WEAR Thus Far ??????
When the native apps start rolling in, you’ll see a big surge in sales.
I returned mine. Is just an extension of my phone that also tells me my heart beat. Nothing phenomenonal.
I Doubt You Bought.
Tell us Which Model and Band, When You Ordered and Got it in Person and When You Retured.
Lol, too silly. I bought the Apple watch (silver) with the sports band for 731.46. I got it last week on wed and returned yesterday. I used it off and on. The days I didn’t use it I forgot about it. The days I used it I felt like it was just a novelty. The running features were even under whelming versus my phone. What’s funny is I also got a Bluetooth running headset to go with the apple watch and I am keeping them because they are great. In the end the apple watch (speaking from a place where I own many apple devices) was just boring. Almost seemed like a prestige piece of arm bling versus the function. I talked to several PPl and some love and some hate it. It didn’t have enough value add in my experience with it to keep it. For me it takes the same place as an iPod nano in apple product line. I already own products that do its functionality so why would I duplicate.
HAHAHAHAHAHAHAHAHAHAHA
Yeah, Ya’re TOO SILLY that Ya Got It Last Week and Returned It Yesterday, LOL !
So Ya Even Hasn’t Tried to Use it For A Week.
Then WHAT WAS YA MOTIVE OF PURCHASING Apple Watch In The First Place ??????
I Ask Ya A Question !
Has Ya Got Any Maldroid Wear ?
If Yes, That Means Ya’re Persisting that Maldroid Wear is Better Than Apple Watch. Correct ? LAUGHABLE !
If No, Ya’re Denying ” The Wearable ” All Together. Correct ??????
Anyway Ya’re Lacking in Intelligence to Possess Apple Watch PROPERLY.
So Good for Ya to Have Returned It, Lol.
HAHAHAHAHAHAHAHAHAHAHA
None of your business where and how he got it.
What A Fruity Moron.
WHY NOT, IDIOT ??????
As is The Often Case With Maldroid Fanatics, They Disguise