Apple Watch Series 2 may not be enough to boost sales

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The new features on the Apple Watch Series 2 will not be enough to boost overall sales of the wearable, claims KGI Securities analyst Ming Chi Kuo.

Even though the original Apple Watch was only on sale for eight months in 2015, Kuo’s supply chain sources indicate that sales will decline compared to last year.

“Based on these considerations, we revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015),” writes Kuo in a note obtained by Business Insider.

In his note, Kuo identifies four problem areas for the Apple Watch Series 2: no killer apps, weak battery life, have reliance on iPhone and the “likelihood that multi-touch will not be the best UI solution for wearable devices.”

The Apple Watch Series 2 was introduced last month adding a faster processor, GPS and waterproofing. The price of the Apple Watch Series 1 was dropped to just $199, but Kuo says that won’t help boost sales.

Apple has not revealed exactly how many Apple Watch units it has sold, so all estimates are based on third-party information.