Apple Watch Reviews And A Decline In Sales

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.

We have studied investments from Netflix, new contracts signed by Orbital, SolarCity earnings report and their negotiation with Tesla for the acquisition of the Powerball battery, the problems that ARCH coal is facing, how IBM is investing in the treatment of the Zika virus, how Moon Express is planning to mine minerals in the moon, and how Citigroup is engaged in commodity trading.

We follow a lot Tesla here, from the fundamental analysis and from the technical as well. See how the Chevy Bolt and the Tesla 3 are dimensioning the evolution of the price of this shares and how this could affect technical analysis, and how the Autopilot functionality is working: the evolution of the Autopilot software has always influenced the prices of their stocks. Tesla Model S 70D is considered the “car of the century”, not by us of course, but we are interested to see how these awards affect the evolution of the stocks. Tesla and other companies signed an agreement so that autobraking became the standard in 2022. A trend in the automobile industry started by Mercedes Benz and Tesla, is having a platform to sell pre-owned vehicles: now General Motors is joining that trend as well.

We have studies how the stock slump of GoPro should be considered not only from the view of technical analysis. Also, check the functionality from Facebook, the “login approval” and if it really protects users or other interests. The reports from Volkswagen about their very low injury claims, how now other companies in China can use the name “IPhone” apart from Apple. We continue in China to learn about the Marketplace Alliance Program from Alibaba, and the joint investment in CloudFlare from Google Inc, Microsoft Corporation, Qualcomm, and Baidu.

About Google, a company we follow a lot here, I want to see how they have entered in the batteries market and how this will affect their current projects and the evolution of the stocks. Interesting are the Chrome updates to decrease CPU usage.

We analyze the effects of the position of Disney in the dispute between Netflix and Time Warner, so we can understand how Disney is shifting its business after selling its stake in Fusion.

We discuss briefly how Oracle adressed the changes in the cloud-computing industry, why Morgan Stanley is optimistic after the pandemic and the Brexit, the divestment in Dell regarding Perot Systems, and the effects of the huge minimum wage rise in Costco. Chipotle is cutting the executive compensation, the issues that BP is facing, what happens with Macy´s earnings and how fundamental analysis can be done in those cases. About Apple, we analyze the effect of the launch of this product Apple Watch where sales performed very irregularly.

Similar Posts