Most analysts agree Apple has created a wonderful product in the Apple Watch, but it is not essential to our lives.
Apple Watch was possibly the hottest tech product when it was launched, and was slated to become the next great innovative product introduced by the tech giant, Apple Inc. (NASDAQ:AAPL). However, a recent report by published by Slice Intelligence indicates that the product is rapidly losing sales.
The report, which is based on data collected from electronic receipts sent to customers’ emails after completing the purchase, revealed that Apple had sold around 1.5 million watches in the initial week of release, which means that the company had sold about 200,000 units every day. However, recent data indicates that the sales have fallen down to less than 20,000 units a day and sometimes it sells even less than 10,000 watches.
The report also revealed that the bestselling version of the watch so far has been Apple Watch Sport. It is the least expensive version, being priced at $349, and has accounted for nearly 66% of the total watch sales. This comes as a slight surprise as Apple Watch, the mid range version, was expected to account for a major portion of the sales.
The research also revealed that Apple’s Luxury “Gold model”, which was priced around $10,000, has seen sales of less than 2,000 units, which shows that demand for the luxury model has also weakened.
It should be noted that these are not the official numbers, nor has Apple made any confirmation regarding the figures. Although this report cannot be taken as authentic source regarding the figures, it does show the current trend of customers, which is not very encouraging.
First of all, the decreasing demand reveals that the majority of customers who were interested in purchasing the gadget have acquired it, and the company is now facing difficulty in attracting more users.
Secondly, the Apple Watch is also important as it is the first new product launched by the company after the demise of its legendary CEO, Steve Jobs. Hence, many people are gauging it as standard for whether the company is able to maintain its reputation as a producer of revolutionary products.
Another slightly worrying factor is that Apple has not given any sales figures for the Watch. This is a significant change from previous practice where the company used to announce the sales results of its products such as iPhones and iPads, only a few days after their launch and indicates that perhaps the watch has not been able to meet its expectations.
Still, it has been only three months since the watch was launched, and even if the figures in the report are accurate, it is too early to consider the product a failure. Apple Watch is still the best selling smart watch by far, and is way ahead of its competitors when comparing sales figures. Furthermore, the Apple Watch accounts for only a small portion of the company’s overall business; hence no significant impacts should be expected on the earnings.
Moreover, Apple is known for its constant innovation, excellent quality products, and great marketing tactics, so it won’t be a surprise if it manages to regain its footing soon.
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I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go. I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.