Apple CEO Tim Cook: We're 'Working Hard' to Remedy Apple Watch Supply/Demand Imbalance

[V.K.]

Apple said on the last earnings call they will not be reporting the Apple Watch as an individual line item. It will be under "Other."

That's why Apple isn't announcing anything. If you want guess how it did, next earnings call see the jump in the Other category over the averages from the previous year.

The question is why they are sticking with this strategy. that's not a sign of strength no matter how you spin it. they always proudly announce the numbers, especially early sales numbers for iphones. they did it for the first ipad too. the only reasons I can think of not to do it for the watch would be
1. the overall sales are low or
2. the actual initial shipments (vs orders) are VERY low due to production issues.
I was always sure it's the latter because Apple warned of low initial supplies in advance (they NEVER do that), restricted initial sales to online and because they pushed back the launch as far as they possibly could without completely breaking the "early 2015" promise. But if the initial orders are as good as the numbers being bandied about ( 2-3 million) I can't imagine why they would not want to announce that.
Either way we should soon see more accurate sales numbers based on app usage analytics.

 

[Motawa]

more like "the chinese are working hard"

 

[ZCT]

Meh, Apple is a US company. I think it's perfectly appropriate for the US to get first dibs.

I think Apple had their reasons for a nine country release.

Watches have different cultural connotations in different countries. For example, I think gold colored jewelry is less prized in American culture than say Chinese culture. Just look at any American under 40 who is married, odds are their rings will be silver colored, whether it be white gold or platinum.

In any case, Apple had a new product that many companies had tried and failed to get to gain traction. By doing a multi country release if America is luke warm to the Watch, yet China buys a million in six hours, they can still call it a massive success and move forward.

Do a one country release that goes poorly and it could have a knock on effect on later releases.

 

[twistofmatt]

I ordered 2 days ago and my initial ship date was june. Now it says I will receive it between May 14-21

That's when I ordered mine, hoping I see some improvement. Right now it just says June.

 

[dazzaah]

42 SG Sport Preparing for Shipment

Finally a status change. I ordered at 12.03 conf 12.04. I'm so excited to be getting it in the next few days!

 

[iBlazed]

That's when I ordered mine, hoping I see some improvement. Right now it just says June.

Which model? I ordered the 42mm sport with white band

 

[kerrikins]

The question is why they are sticking with this strategy. that's not a sign of strength no matter how you spin it. they always proudly announce the numbers, especially early sales numbers for iphones. they did it for the first ipad too. the only reasons I can think of not to do it for the watch would be
1. the overall sales are low or
2. the actual initial shipments (vs orders) are VERY low due to production issues.
I was always sure it's the latter because Apple warned of low initial supplies in advance (they NEVER do that), restricted initial sales to online and because they pushed back the launch as far as they possibly could without completely breaking the "early 2015" promise. But if the initial orders are as good as the numbers being bandied about ( 2-3 million) I can't imagine why they would not want to announce that.
Either way we should soon see more accurate sales numbers based on app usage analytics.

Why do you think that they would suddenly change their minds as soon as it launched? I mean, it's not as though they only said it as soon as the pre-orders were in, they said it quite awhile ago. I believe Tim made a comment about not wanting competitors to know how they're doing, but I also think that this takes some of the pressure off because even though it's a first gen release, there's a massive amount of pressure.

I don't have feelings one way or another about the launch and whether or not it's a success, but I don't think that Apple's mind is so changeable that they'd go back on something they announced so openly.

 

[applezulu]

They need to work harder! It isn't right that my friend who ordered the exact same model as me (38mm Space Grey) but did it in store on the day AFTER preorders and has already received it when he wasn't supposed to get it til june. Yet I ordered at 3:02 am and was confirmed in an email at 3:04 am and it was pushed til May 13-May 27.

Where is my watch apple!!!!!

Meanwhile in Nepal, there are other burgeoning supply chain problems being sorted out.

I'm just saying.

 

[dumastudetto]

Are you an Apple customer rep by any chance? You sound just like them

Definitely not. I've been very critical of Apple on here about various issues. I also wasn't completely sold on Apple Watch until I used it for the first time. But from the moment I started wearing mine for the first time, everything about Apple Watch started to make perfect sense.

 

[arybaryba]

Still Waiting Too!

penajmz, when did you order yours? I ordered the same at 3:07am 4/10 and still on processing and 4-6 weeks.

I ordered at 12:04 on 4/10 and got a 4/24 - 5/8 delivery window. Still processing. I'm wearing out my fingers checking my bank for the charge and Apple for the change to shipping!

 

[arybaryba]

Or Maybe Not!

I'm more pissed that the online store came up way after the app store app went live on the phone, had that not been the case, I'd probably have one in hand right now!

I think it depends on what you ordered. The confirmation for my 42 SS BSB was 12:05 on 4/10 and gave me a 4/24 - 5/8 window and I'm still in processing hell. Seems like many of the people not getting their watches yet, ordered the BSB models. Most of the happy dance emails I see are Sport Watches and other than black bands. On doing the pre-order I learned my lesson from the iPhone 5 launch. I always have the website open (and refreshing constantly) AND the Apple Store app open at the same same time. Whichever comes up first is where I go to work. This time it was the app. Works pretty well. Hope you get yours soon!

 

[dexterbell]

The question is why they are sticking with this strategy. that's not a sign of strength no matter how you spin it. they always proudly announce the numbers, especially early sales numbers for iphones. they did it for the first ipad too. the only reasons I can think of not to do it for the watch would be
1. the overall sales are low or
2. the actual initial shipments (vs orders) are VERY low due to production issues.
I was always sure it's the latter because Apple warned of low initial supplies in advance (they NEVER do that), restricted initial sales to online and because they pushed back the launch as far as they possibly could without completely breaking the "early 2015" promise. But if the initial orders are as good as the numbers being bandied about ( 2-3 million) I can't imagine why they would not want to announce that.
Either way we should soon see more accurate sales numbers based on app usage analytics.

This is what I just said on the last page lol.

 

[Tech198]

I don't think so Tim..... How about changing my shipment from June ........ Then u'll get a green Apple...

 

[krazyeights]

I ordered the bumper....just in case lol....I have always done well selling on eBay the old when buying the new. It is because my items are in excellent condition.

Nice.. I ordered the Spigen hard case and ArmorSuit (Front & Back) skin shield. I wore my G-Shock for over 9 years already and know just how many times I bang my watch during the day.

Still no shipping update on my 42mm SB Sport

 

[max-man]

Finally. They just charged my credit card. Still no updates on shipping. My guess is though they only charge when it is about to go to shipping.

 

[krazyeights]

Finally. They just charged my credit card. Still no updates on shipping. My guess is though they only charge when it is about to go to shipping.

If you don't mind me asking what did you order, what time, and ship date?

 

[edgr.sanchez]

Ordered mine at 12:04am. Sport with Space Gray and black band.

I had estimated shipping time of 4-6 weeks. It just changed to preparing for shipment.

 

[Tech198]

I'm on the edge now weather i should : order mine now, knowing fully well it won't ship till June, or leaving the order till August and see "will ship within 2 weeks"

Eventually if I leave it i know it will sort itself out and improve, and i'm also in no rush to get one either.

Only wondering simply because the fact "some shipping times have improved".

 

[Mikulsky]

Mine Reverted Back

Yesterday... My space gray 42mm said "May 21st - June 4th" same as the Silver 38mm. Then today the Silver went to "Preparing for Shipment" with the same May 21st - June 4th date... And the space gray slipped back to "JUNE" delivery. Apple got my hopes up only to CRUSH them.

 

[Wizard1x]

Preordered 4/10 around 12:05. got a shipping window of 4/24-5/8. Status changed today (4/28) to preparing for shipment.
Stainless steel black classic buckle. Ordered in southern California city of Los Angeles.

 

[ssspinball]

The question is why they are sticking with this strategy. that's not a sign of strength no matter how you spin it. they always proudly announce the numbers, especially early sales numbers for iphones. they did it for the first ipad too. the only reasons I can think of not to do it for the watch would be
1. the overall sales are low or
2. the actual initial shipments (vs orders) are VERY low due to production issues.

They already said why: competitive reasons around the high number of options. The options with materials and bands is exponentially higher than with any iOS device or Mac.

Why wouldn't you believe that reason when literally every other competitor doesn't release any sales numbers at all?

 

[max-man]

If you don't mind me asking what did you order, what time, and ship date?

I ordered the 38mm space Grey BSB.
Order on the 10th at 3:02am confirmation email at 3:04am.
Ship date: 4-6 weeks 5/13-5/27

It just changed to "Preparing for Shipment" but my available to ship and delivers dates still have not been updated.

so fingers crossed that it will ship now and not in weeks. I mean they did take my money.

 

[krazyeights]

I ordered the 38mm space Grey BSB.
Order on the 10th at 3:02am confirmation email at 3:04am.
Ship date: 4-6 weeks 5/13-5/27

It just changed to "Preparing for Shipment" but my available to ship and delivers dates still have not been updated.

so fingers crossed that it will ship now and not in weeks. I mean they did take my money.

Thank you for your reply. Good luck, I'm sure you'll get it soon.

 

[ksuyen]

Not nearly as many as you would think. They were quick to announce selling over 300k iPads the first day it went on sale in 2010, the last time they released a new product. If the Watch sold anything significant, you could bet there would have been an official release already. They aren't saying because 1) sales are probably terrible and they don't want anyone to know so they can still create an illusion of far more demand then supply. 2) if they came out saying they only sold 100k but the wait is 4-6 weeks, it would make them look very incompetent. Its rumored the new MacBook only sold 50k the first weekend and they can't even get enough of the 1.2GHz to those who ordered one at launch. Things have really gone off the rails since Steve died.

https://www.apple.com/pr/library/2010/04/05Apple-Sells-Over-300-000-iPads-First-Day.html

1) I would say it's too early for any announcement. Just because there was none, it doesn't mean anything. Although it won't stop people speculating obviously.
2) I am pretty sure they will announce watch sales in the next quarter. But keep in mind that Tim has explained that Watch will not has its own category in sales, but will be under "accessories". Everything you said are baseless, "rumour" is not a fact, so don't make a conclusion out of nothing
3) Just saying.

 

[dexterbell]

1) I would say it's too early for any announcement. Just because there was none, it doesn't mean anything. Although it won't stop people speculating obviously.
2) I am pretty sure they will announce watch sales in the next quarter. But keep in mind that Tim has explained that Watch will not has its own category in sales, but will be under "accessories". Everything you said are baseless, "rumour" is not a fact, so don't make a conclusion out of nothing
3) Just saying.

Just the fact that they are grouping it with the iPod and ATV, two devices that don't sell all that well, should tell you what they expect sales to be like. If they thought it was going to be a huge seller, it would get its own category like the iPhone and the iPad.