Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

[BaldiMac]

1. Some indication that the release of the watch grew the overall wearables market and made it more viable as a product category. At the moment all I see is a few million sold to the faithful with sales declining.

Again, these numbers imply $10+ billion in first year revenue. That certainly grows the market and demonstrates a viable product category. If you don't agree, what numbers are you looking for?

2. Given the hype, more enthusiasm for the product out in the wild, in the press, etc.

Subjective. I'm asking for actual metrics to support your conclusion.

3. A significant increase in gen 2 sales over gen 1.

Not there yet.

 

[KindredMAC]

I laugh every time I see that image. There is no way that would work in bright light... ever. (let alone work with all skin types, arm shapes, sweaty/shiny arms, arm hair, etc. Too many issues to overcome)

Its almost as bad as those completely bezel-less iPhone/Macbook renders. No regard for reality.

Innovation has to start somewhere.

It's always easier to criticize something than to think of how to make it work.

 

[netkas]

I just sold mine, I'm afraid. I received it on launch and just didn't find myself using it often. I'd wear it daily but rarely even used it. Unfortunately it didn't change my daily life like the iPhone or iPad did and it's just an extra accessory. I'm really hoping the 2nd generation one makes the leap the 2nd gen iPhones and iPads did.

Like I didn't say same almost a year ago. - http://netkas.org/?p=1349

 

[bb-15]

Without at least 48 hours battery life, this is a non-starter for me.

This. The Apple Watch needs to at least double its battery life with it being always on during the day (no screen saver watch face).
That way it will function better as a watch.
Also a person should be able to sleep with it while it is turned on (which has some uses) and not worry that it will be dead in the morning.

 

[marty11]

Huh. I guess I'm not seeing it because I've never searched for Apple Watch returns.

Neither have I until I entered "I am returning" cold today.

 

[currocj]

the whole premise of watch is that... "...and you don't have to take your phone out of your pocket to do so." Not very compelling. Just sounds like laziness to me.

 

[marty11]

No, the problem is that you want it to be a phone!

I don't want it to be anything, because I'd never buy another screen to stick in my face. But, yes for the price I'd expect it to do more. But here we are with $600 eye candy and watch bands that cost $2 to manufacture yet are sold for $100. Apple had set their sights high. Sadly there weren't enough tools with an extra $800 to burn.

Time to admit it. This is the google glass of Tim Cooks tenure. At least Google had the sense not to release the product.

 

[marty11]

I understand there's a lot of disparaging Apple on this today. But the product sucks. It will get better with time.

If it connected autonomously and perhaps replaced the need to cary a phone it may see more adoption. It will be another option to connect for people on the go. But alas Apple's innovated product is held hostage by network providers (as was the iPhone 1).

Maybe in 5 years it will be fully waterproof, accept calls and have good speech recognition and connect to the internet on a LTE plan so that it could be used as an autonomous communication device. But even then, will people even care?

 

[JoeRito]

Hate the watch, people love mechanical watches, screen too small, waste of money, no battery ... HUGE FLOP!

 

[Attirex]

Apple should just liquidate assets and go out of business.

 

[JeffyTheQuik]

I'm not sold on wearables, but I think you're very right. More sensors and a much lower price are required for this technology to broaden its appeal. However, when it comes down to it, most sensors are somehow health related, so wearables are really about convincing people they need to constantly monitor themselves and obsess over personal health data.

I really hope that's not the future. Because in my mind that's just about enabling bad behavior. We all know what it takes to be healthy. There's no great mystery. Unless you're a hard core athlete or have a bonafide medical condition that requires some kind of monitoring, isn't tracking all of our bio data pretty narcissistic? And are people really so lacking in willpower that they need Activity Rings and awards to get them off their rear ends? I don't know. Call me crazy. But I'm more optimistic for our species than that, hence my feeling that wearables won't ever be a mainstream category.

Activity Rings actually kind of frustrate me. The only way I can get that outside ring (the calorie one) is by doubling the exercise ring (60 minutes vs. 30 minutes required for that ring). The stand up ring is the only one I can consistently get. Oh well...

My engineering training makes me want to get as much biometric data on me so that I can graph the correlations between insulin usage (T1Diabetic), exercise, calories consumed, and activity, so I can predict my usage, and figure out what to change for me to lose that insulin pump weight (a lot of T1D's gain weight when they get on a pump, as it they are metabolizing their food more naturally, and not peeing it out).

For me, I have improved my health about 50% (that's "dude, you've been on your butt all day at the office, ride your bike the 5 miles to work..." nagging), and I've lost about 15lbs.

But then again, that may be just me trying to justify my purchase. For those that wonder if I'll buy Gen2, no. Mrs. thequik may get one, but I'm committed to Gen3.

 

[Chupa Chupa]

Ha this is comical. The watch has been on sale for less than three months. It's a first gen product. People today would laugh at the specs and capabilities of the first gen iPhone and iPad. How did Apple oversell anything with Watch. I can't remember the last time I saw an Watch ad anywhere.

Comical?

My comments are about the launch to date which has been underwhelming, and I gave some reasons for it. But lets go over your points.

1) Yes, the AW has been on sale for 3 months and Apple still hasn't said anything about sales. If you are going compare the original iPhone to the AW, Apple announce sales thought the quarter. Why is Apple so mum?

2) Yes, people would laugh at the original iPhone specs today BECAUSE they laughed about them back then. The killer feature of the original iPhone was it's screen. It's processor was nothing to impress. And certainly it's wireless capability was a step back with only 2G EDGE. (Original iPad was criticized for being too heavy, which it was).

But here is the difference between the original iPhone and AW. When I used my original iPhone back in 2007 it didn't take a year to launch Safari or Stocks or any other app. I'm constantly waiting 30 sec to over a minute for Apps to open on my AW -- to the point I don't even want to bother. I'm not the only one making this criticism. Plenty on the AW forum and elsewhere, even professional reviewers who are constantly kind to Apple.

Onto Apple overselling the AW:

The outside display and wonder room assignment as Selfridges. The display at Galeries Lafayette. The fashion show appearances. Ive's comparing the AW to fine swiss time pieces and Apple then pricing some in the same price range with no other additional feature to the entry level other than being steel or gold. Cook and Ive going on about the special process the gold AW is made. The morphing of fashion and sport with the Cristy Turlington cameo at introduction and then the video bits about how she uses it for training (I tried to use it as a running watch. It's not in the same league). Cook highlight the AW's Health and Workout apps and the video of how they calibrated it with Apple employee volunteers. Man, I could go on and on with how Apple hyped up the watch, and as an owner and a runner I can tell you it doesn't work as advertised right now.

Do you really believe the stuff you write. I'm as big an Apple fan as any and been so for almost as long as Apple has existed. But my ego is not invested in Apple's success. Where I see stink I'll pinch my nose for all to see. (I am BTW financially invested in Apple's success with it being 10% of my portfolio). The Apple Watch and launch TO DATE is plainly not a robust one to anyone who isn't wearing blinders.

 

[ColdShadow]

My Apple Watch is the best thing I've bought in years. I love it.

Doesn't seem a failure to me.

That's good.enjoy it.
However according to sale figures and various user reviews/comments,etc you are of the minority.

 

[BrentT]

Only Apple knows if sales are meeting their projections. The data collection methods of this firm are suspect until actual figures are (if ever) released.

For a 1.0 product it must hard to know the right price point. I bought an entry level 42mm Sport and love it. Most anyone who sees it wants one after a demo. I have been very happy with my purchase. Battery life is very good per day, with about 30% drain per day on average.

I would not pay more that $400 for an Apple 1.0 product. The stainless steel is too much when the overpriced bands are factored in.

 

[Benjamin Frost]

Well, I'm loving mine!
It's beautiful, it's responsive and it's not bulky at all.
And it gives me a nice, subtle way of seeing my notifications.
I'm so glad I don't have to pull out my phone out of my pocket all the time anymore.

I'm afraid that Ive would be none too pleased with your skeumorphic avatar.
Glad to hear you're enjoying your gadget, though.

 

[BaldiMac]

1) Yes, the AW has been on sale for 3 months and Apple still hasn't said anything about sales. If you are going compare the original iPhone to the AW, Apple announce sales thought the quarter. Why is Apple so mum?

Again, Apple announced months before the Apple Watch went on sale that they would no be announcing sales numbers for strategic reasons.

 

[Rogifan]

Since I don't own it... I never have either.
I just tried it on my safari which i never use and it is there.

I think it is very reasonable to asume that the apple watch will be on the top of their list of the most retuned apple product.

Well I tried it again and it isn't showing up for me. So who's anecdotal data should we trust? Of course people that are predisposed to believe it's a failure will use any data point available that they think proves them right. Now I've never said anything in terms of the success of the Watch. I have no idea how successful it is and neither does anyone else.

 

[Gasu E.]

the whole premise of watch is that... "...and you don't have to take your phone out of your pocket to do so." Not very compelling. Just sounds like laziness to me.

Like the premise of paper was "you don't have to chisel your words onto a rock." Absolute pure laziness!

 

[robbyx]

Again, these numbers imply $10+ billion in first year revenue. That certainly grows the market and demonstrates a viable product category. If you don't agree, what numbers are you looking for?



Subjective. I'm asking for actual metrics to support your conclusion.

By all means, please provide FACTS that demonstrate how you reached 10 billion in first year sales.

You're getting on my case for not being a blind fanboy, you're demanding facts to support my opinion, yet you yourself throw around a sales figure with absolutely nothing to back it up.

 

[Chupa Chupa]

Again, Apple announced months before the Apple Watch went on sale that they would no be announcing sales numbers for strategic reasons.

Understood. The question is why? What is strategic about not announcing sales numbers unless they would cause the stock to tank or let analysts stamp it as a flop instead of just speculate about it? Apple was not so shy about the iPhone or any other major hardware launch in recent memory. Only the AW is exempt. Why? "Strategic Reasons" is just a cover.

 

[robbyx]

Again, Apple announced months before the Apple Watch went on sale that they would no be announcing sales numbers for strategic reasons.

And you believe that BS? That's just a hedge. If sales suck, they fall back on that lame excuse. If they'd knocked it out of the park, sales numbers would have been the first WWDC slide.

 

[iosuser]

I love watches and I love gadgets, but I have positively no interest in having an Apple watch. I will never buy a watch that requires daily charging and be obsolete in a year or two. To me, a watch is forever, requiring no electrical power (yes mechanical watches only) and very minimal maintainence. This goes directly against Apples business model of having people upgrade their gadgets every couple of years. I just bought my first automatic chronograph watch. My collection of watches is complete

 

[Mad Mac Maniac]

I love my Apple Watch. I really do. However, I do think Apple tried to do too much with launch. Specifically the apps. I heard this argument from a podcast (MacBreak I think?), and initially I didn't agree, but upon reflection I think that's spot on.

Let's face it. The mirrored apps suck. They are slow; they don't have access to sensors; they can't run in the background. It leaves a bad taste in your mouth. I think it would tell a better story "Apple watch is a good device, and it'll become great when 3rd party apps are supported!" as opposed to "Apps suck on the apple watch! Clunky and slow!"

Honestly, I rarely use any apps at all. Basically just the exersice app and occasionally the weather app. Releasing without 3rd party apps would have helped to train people to understand that this is a different device. It's not about the apps. It's about the fitness features, notifiations, glances, etc. If you're spending your time going into apps, you're doing it wrong.

Also, a significant amount of engineering effort was designated to these mirrored apps that could have been used on OS optimizations.

 

[HenryDJP]

As a shareholder in Apple, yes, I think it is their job to deliver revolutionary products – doing so under Steve Jobs is what made Apple what it is today – and Apple has far larger budgets and deeper resources than anyone else in this field so I did have high expectations for Apple.

Is your point that Apple should be satisfied with being only to be slightly better than a bunch of companies that no one has heard of? Or that Apple can only be expected to innovate if it's competitors do so first? Neither of these really makes sense to me.

I'm glad none of that makes sense to you because I never said or suggested any of it.

 

[FatMax]

I don't want it to be anything, because I'd never buy another screen to stick in my face. But, yes for the price I'd expect it to do more. But here we are with $600 eye candy and watch bands that cost $2 to manufacture yet are sold for $100. Apple had set their sights high. Sadly there weren't enough tools with an extra $800 to burn.

Time to admit it. This is the google glass of Tim Cooks tenure. At least Google had the sense not to release the product.

These are some pretty ridiculous arguments, as you clearly have no idea how a day or two with this very specific watch is like and you don't have any intention to find out.

It's pretty stupid to see you form arguments over the price of the product and what you think Apple earns pr. sold product.