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.
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“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.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
15 responses to “Apple Watch Series 2 may not be enough to boost sales”
Where did the Apple Watch Series 1 drop to $199? I’m still seeing “Starts at $269” on Apple’s website.
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Enough of Ming Chi Kuo! Please. He was wrong on iPhone numbers and then readjusted his error by bringing in the Note battery issues. He will probably be wrong on Watches. He has supply chain moles that do not always correlate to sales. He is an…. analyst. Spit.
Bump – Ming don’t know squat…market manipulation.
Except when all those product releases he’s been right on, and when he projected weak phone sales 2 quarters ago when most fans looked the other way
If the sales are going to be lackluster then why can’t you find one in stock anywhere. I didn’t pre-order since I was on the fence, but I actually have a real use case for it and waiting 3-5 weeks for shipment is not enticing. At this point I will just wait for manufacturing to catch up.
Because they ordered less ? A very common tactic… Expect 1000, Order 800 – boom, out of stock, demand is extremely high. Simple marketing techniques.
Likely due to supply issues. The original Apple Watch was also in short supply for months when released. By most accounts, Apple sold fewer than initially projected. I’m bullish on Apple and Watch. That said, it may take some time to gain traction.
but so what? it’s not about selling the most it’s about making the best…. aside from that I’m sure he’s wrong
but so what? it’s not about selling the most it’s about making the best… and taking all the profits on the way.
I wouldn’t put much faith in his analysis. I doubt he is a financially impartial observer working for a securities company. What are KGI ‘s holdings and what are they trying to manipulate ?
Now try to go buy one, the watches are sold out.
No stock doesn’t mean high sales. Companies very often order less than they need to create the impression of product’s demand being extremely high. Most marketing departments do this.
Most of his latest predictions were pretty accurate… especially those related to products and features.
Reading comments, only one conclusion comes to mind: something negative said about Apple ? It must be lies! Lies I tell you! Nobody knows anything, everyone knows shit, if it’s about Apple and it’s negative, it’s immediately branded as a lie.
“This news could be bad for Apple? It must be stock manipulation!”
“This news is good for Apple? Totally knew it, Apple’s the best and everyone else sucks.”