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Apple Watch demand not enough for suppliers to break even

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Are Apple Watch expectations just too high?
Are Apple Watch expectations just too high?
Photo: Jim Merithew/Cult of Mac

Apple told investors earlier this month that sales of the Apple Watch have far exceeded its own internal expectations, but some of the companies that are making parts for the new wearable are claiming that they can’t even break even because demand is so weak.

Taiwan’s Advanced Semiconductor Engineering (ASE) which makes the system-in-package case that contains Apple Watch’s array of sensors and chips, told investors during a conference call that it still hasn’t reached “break even volume” of two million units per month.

Kahney’s Korner: Why you should buy an Apple Watch

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Should you buy an Apple Watch?
Our Glorious Leader Leander Kahney tries on his Apple Watch soon after receiving it.
Photo: Jim Merithew/Cult of Mac

For me, it’s the burning question of 2015: “Should I buy an Apple Watch?”

As editor and publisher of Cult of Mac, everybody’s always asking me if Apple’s smartwatch is a must-buy. The simple answer is there’s no simple answer, for reasons that might surprise you.

Customers in New Zealand, Russia and Turkey celebrate arrival of Apple Watch

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Customers queueing up for the Apple Watch in Russia.
Photo: The Village

The Apple Watch went on sale in New Zealand, Russia and Turkey today, with the wearable devices available at the countries’ respective Apple Online Stores and brick-and-mortar retailers.

In Russia, Watches can be purchased in person at iPort, Re:Store, and C-store Internet stores. In Turkey, customers can do in-store pickup at Apple Stores in Istanbul’s Zorlu Center and Akasya Shopping Center. In New Zealand, Watches are available at select Apple Stores.

9 unlikely objects that are smarter by the second

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Philips-hue
I remember when this was the weirdest thing I'd ever heard of.
Photo: Philips

Apparently, it isn’t enough that our phones, appliances, TVs, thermostats and light bulbs are getting Wi-Fi and Bluetooth connections so we can control them remotely and teach them our habits. No — some enterprising souls are looking at their stuff and just gasping at how dumb all of it is.

And so, things that we may never have thought of slapping the “smart” prefix on are getting all wired up and clever. Here are a few of the more interesting ones.

Why I dropped everything to create Apple Watch apps

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Are Apple Watch expectations just too high?
Are Apple Watch expectations just too high?
Photo: Jim Merithew/Cult of Mac

I dropped everything to make apps for the Apple Watch. I’ve owned the Watch from day one and I admit it is has its shortcomings, but oh my does it have potential.

The device convinced my co-founders and me to start Tap Get to work exclusively on Apple Watch apps — early, while the rest of the world is still making up its mind about smartwatches and other wearables.

Apple Watch ads showcase the growing catalog of apps

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There's no shortage of apps on the Apple Watch.
There's a world of apps out there.
Photo: Apple

Just in case there are still people out there asking what the Apple Watch does, Apple has debuted three new ads showing off some of the great apps you can use on its breakthrough wearable device.

Covering music, fitness and travel, the apps run the gamut from Shazam and Instagram to MLB At Bat, Yelp and Apple’s own Activity app. They follow on from another series of spots Apple recently released, showing off additional travel and fitness apps on the Watch.

Although Apple hasn’t yet publicly revealed Apple Watch sales, Tim Cook said during last week’s earnings call that the company is more than happy with the number of devices it’s sold so far. Users seem happy, too, with reported higher satisfaction rates than were enjoyed by either the first generation iPhone or iPad.

Check out the ads below:

Get your Apple Watch at Best Buy next month

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Apple Watch won't just be available from Apple Stores come August.
Apple Watch won't just be available from Apple Stores come August.
Photo: Leander Kahney/Cult of Mac

Apple debuted the Apple Watch at its own stores and special upmarket pop-up boutiques, but now that the device has been on sale for a while, we’re starting to see it trickle-down to other retailers, too.

One of these outlets is Best Buy, which has confirmed it will be selling the Apple Watch at more than 100 stores in the U.S. from August. That number is set to expand to more than 300 outlets by the holiday season.

Apple Watch’s biggest fan? Siri

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siri exploit
Don't worry, Apple. Siri likes your watch.
Photo: Apple

Everybody likes to get a good chuckle out of Siri, Apple’s virtual assistant. But we really have to call its brand neutrality into question.

Despite all of the doom and gloom we’ve been hearing since the Apple Watch launched in April, including the company’s own reluctance to let us know how well the device is selling, it looks like our favorite digital helper has decided that it’s a winner.

Asking Siri “What is your favorite watch?” or “What do you think of the Apple Watch?” will get you some enthusiastic endorsements of Apple’s latest gizmo. And this is our surprised face.

These ideas for Apple Watch faces are totally ‘mathematical’

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Oh zang! That's a great idea for an Apple Watch face.
Oh zang! That's a great idea for an Apple Watch face.
Photo: Adventure Time

Apple Watch comes with a limited number of functional, classy watch faces for you to use, but it totally lacks wacky, personalized watch faces for you to gloat over. If you’re searching for cool Apple Watch faces that stand out, there are plenty of options to explore.

Now a new collection of images shows how cool it would be if we had the ability to customize our Apple Watch faces the way we want. Note, though, that many of these would be impractical for telling time. As my co-worker Evan Killham said when he saw these ideas, “Where does the clock part go?”

Pundits ditch Apple Music and Apple Watch satisfies the masses on The CultCast

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Photo:

This week: some pundits are fed up with Apple music, but you know what? We’re not. Plus: Apple’s Back To School promotion is finally unveiled; Apple Watch topples expectations, gets an insane satisfaction rating; iOS devices cross a major threshold; plus we answer your questions on an all-new #CultCastQnA.

Our thanks to lynda.com for sponsoring this episode. Learn virtually any application at your own pace from expert-taught video tutorials at lynda.com.

Show notes ahead. Bon appétit.

Minion-like Apple Watch stand is so cute it’s creepy

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WatchMe apple watch stand
The WatchMe Apple Watch stand is clearly planning something.
Photo: Vivien Muller

We hope that the designer of this cute Apple Watch stand doesn’t get an adorable little cease-and-desist letter in the mail.

The WatchMe stand bears an uncanny resemblance to the stars of some despicable memes scattered across the Internet like salt, but it isn’t a complete rip-off. They don’t have arms, after all. And luckily, the Apple Watch, which the stand wears like a monocle, isn’t round.

So it’s a toss-up, really.

Everything you need to know about Apple earnings for Q3 2015

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Good news for Apple investors today.
Record sales for Q3 2015.
Photo: Ken Teegarden/FlickrCC

We didn’t get Apple Watch numbers, but Tim Cook and Luca Maestri delivered plenty of good news about Apple’s current financials and future prospects during Tuesday’s earnings call. Amid all the canned statements and bewildering biz speak, they dropped some tantalizing tidbits.

Cook and Maestri teased us with plenty of bullishness — and a little debunking — about impressive Apple Watch sales and consumer responses to the new device. And that’s just the tip of the iceberg: Apple hit record numbers again this quarter, with massive sales of both iPhone 6 and Macs across the globe.

Here are the highlights from today’s third-quarter 2015 Apple earnings call.

Tim Cook reveals Apple Watch sales topped expectations

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The Apple Watch may be a slow builder.

Apple didn’t officially announce any Apple Watch sales numbers during today’s earnings call, but according to Tim Cook, the company has already beat its own internal expectations.

While the official number of units sold remains a secret, the Apple exec said the number of Apple Watches sold in the first nine weeks was greater than the number of iPhones or iPads the company sold in the same period after they launched.

Liveblog: Apple’s Q3 2015 earnings bonanza

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Earnings call
What will today's Apple earnings call reveal?
Photo: Jim Merithew/Cult of Mac

Apple is set to report its financial results from Q3 2015 to investors this afternoon and, as usual, Cult of Mac will be here to liveblog all the action, from the numbers down to the analysts’ questions.

Apple Watch sales have been looming large in the minds of investors and analysts now that the device has been available for a full quarter. We don’t expect CEO Tim Cook or CFO Luca Maestri to announce the Watch sales as their own category, but there’s sure to be plenty of speculation as to whether the new wearable has met sales expectations.

Today’s earning’s call is set to kick off at 2 p.m. Pacific, but we’ll be kicking off the liveblogging party early with a breakdown of all the numbers. Bookmark this page and join us for the Apple earnings bonanza.

4.2 million Apple Watches shipped is latest analyst guesstimate

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Apple Watch sales figures are basically analyst roulette right now.
Guessing Apple Watch sales figures is basically analyst roulette right now.
Photo: Jim Merithew/Cult of Mac

We’ll get our best — though still inconclusive — estimate of how the Apple Watch is doing later today, when Apple has its quarterly earnings call. Ahead of that, though, analysts are continuing to churn out their own figures regarding how Apple’s debut wearable device is faring thus far.

The latest people to play analyst roulette are research firm Canalys, who peg Apple Watch shipments at a very respectable 4.2 million units, meaning that Apple “easily overtook Fitbit, Xiaomi and all the smart watch vendors, despite the Apple Watch’s significantly higher pricing.”

Here’s where you’ll find Apple Watch sales figures from today’s earnings call

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Apple Watch
Apple isn't spilling the details about Apple Watch sales.
Photo: Jim Merithew/Cult of Mac

Apple’s quarterly earnings call is set to take place later today, but one set of figures we’re not expecting to get is the initial Apple Watch sales. Apple has already acknowledged this data be hidden in the “other products” category — alongside the iPod, Apple TV, Beats Electronics and accessories division.

However, while Apple is likely to keep quiet on the exact breakdown of Apple Watch sales, it will be possible to get a rough idea of how the company’s debut wearable device is faring by doing the following:

Free Apple Watch beckons ‘lifestyle’ renters

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Would a free Apple Watch convince you to rent a waterfront apartment?

If the granite countertops, stainless steel appliances and “breathtaking water views” don’t sell you on moving into East Beach Marina Apartments, maybe the offer of a free Apple Watch will.

Just lease one and move in by the end of July, and you’ll nab a free Apple wearable that will help turn you into the perfect neighbor.

5 Apple Watch apps that are best left unmade

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Netflix Watch
Don't look for Netflix on your Apple Watch any time soon. You'd go blind.
Photo: Netflix (via YouTube)

The Apple Watch has been out for a few months now, and it’s given us plenty of time to decide what we do and don’t want from the wearable. It’s a versatile device, to be sure, but that doesn’t mean that we expect it to do everything for us. In fact, a lot of the apps that we use all the time on our iPhones and iPads would be ill-suited, if not impossible for that plucky little screen.

Here are some Apple Watch apps that wouldn’t break our hearts if nobody ever got around to making them.

Apple Watch gains a higher satisfaction rating than original iPhone or iPad

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Apple Watch customers are some of the most satisfied people around.
Apple Watch customers are some of the most satisfied people around.
Photo: Wristly

Everyone writing about the supposed failure of the Apple Watch may want to check out analyst Ben Bajarin’s latest reporting — suggesting that the Apple Watch has a massive 97 percent satisfaction rate among early adopters.

For those keeping track at home, that’s higher than both the original iPhone (92 percent) and the original iPad (91 percent). In fact, only the current iPhone (99 percent satisfaction) scores higher.

Gene Munster thinks 2017 will be Apple Watch’s breakout year

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post-329576-image-a9f97ef415fcdb2b900c684e26a91057-jpg
The Apple Watch may be a slow builder.

For all those people writing off the Apple Watch as a failure just a few months after its launch, Piper Jaffray analyst Gene Munster has a simple message: Slow down on the quick judgments.

In a new note to investors, Munster claims that the Apple Watch is doing about as well as he expected so far, but doesn’t predict that it will truly hit its stride until 2017 — when sales of the wearable device will be around 40 million units, or approximately 9 percent of Apple’s revenue.

Here are his full comments:

New iPods, fixing Apple’s fitness apps, and cringe-worthy iPhone cases

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New iPods are out, but should you get one?
New iPods are out, but should you get one?
Cover: Stephen Smith/Cult of Mac

The new iPods are here, but should you even bother getting one? We’ve got our opinion on the matter, plus one on what Apple should really do to fix its built-in fitness apps.

Plus, a bit about why the Apple Watch isn’t doomed after all, a profile of another fantastic iPhone photographer, and a gallery of some cringe-worthy iPhone cases that you’ve really got to see to believe.

All that, plus much, much more, in this week’s Cult of Mac Magazine. Don’t forget to subscribe and download this week’s issue.

Apple Pay in the UK: Prepare to blow some minds, hold up lines

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Apple Pay
Apple Pay meets the U.K.
Photo: Apple

Apple Pay rolled out in the U.K. this week, letting a bunch more people start paying for snacks, clothes, and commutes with their late-model Apple gear. It’s all very neat and exciting, but our friends should get ready for some unexpected side effects of living in the high-tech future time.

For example: