Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

[alexgowers]

The whole idea of a watch is flawed, your wrist isn't a great place to put tech it's just not comfortable and the younger generation with the expendable cash just don't wear them anymore. We've had a 15 year gap of kids growing up never wearing a watch as the time is on their phone. You can't expect them to adopt a watch with zero added functions.

I think it'll sell about as much as the iPod does, it'll sell less than the mac and the iPad lines too. It's worth continuing but it's not an iPhone. Even the iPad is now down in sales to levels of replacement rather than new people coming on board to it.

Apple did a great job of promo etc and made a cool product but it's not a standalone, device that can replace hundreds of other things like the iPhone did. The iPhone can sell in much bigger volumes because of that.

 

[mantan]

I think the major problem with the Apple watch is that it doesn't really know what market it is targeting. There isn't really a market for high-end luxury smartwatches, and that fact is clear in the numbers presented in this article (2/3 are the entry-level model). In my opinion, I think Apple needs to target the "sport" crowd, using the Apple Watch Sport. I currently own Garmin watches for biking and running, as well as a separate watch for golf. My friends also own Garmin watches for hiking and orienteering. Each of these devices costs at least $250, with the better devices going for upwards of $500. For me, a $400-500 Apple Sport watch WITH GPS and a decent amount of waterproofing/durability, AND the ability to transform itself via apps (into say, a running, golf, biking, or orienteering watch) would be well worth it. I could forgo my many sport-specific garmin watches (which probably cost close to $1000 as-is), and instead get a potentially much better designed watch that also integrates with my iPhone. "IF" Apple can figure out how to target this market, I think they may have a winner.

I agree. This seems like a much viable path than trying to bogart their way into the fashion market....with a watch with limited fashion appeal.

 

[TranceJD]

I think a lot of people either:

-Don't see the point in owning one
-Waiting for second gen
-or simply can't justify spending that amount of money on one

Personally, for me, it's not a required device to own. I can live without it, and keep my $399.


I know and understand that it has so much functionality etc, but honestly, if I'm going to browse Instagram or check the weather on my Apple Watch, I'd probably be better off taking out my iPhone 6. I don't really see any benefits that it offers as opposed to just using my phone.
If you look at iPad, there are so many benefits to using one over an iPhone (for some key things). For example, if I am browsing the web on my phone but know that I am going to be doing so for an extended period of time, it's convenient to just use hand-off and pick up my iPad. The iPad offers so many benefits in this case.

Steve Jobs made an excellent point during the iPad release keynote in 2010. "If it isn't better at doing some key tasks, then it has no reason for being" and I think that this is the case with the Apple Watch. It doesn't offer a better experience, and have any real benefits as opposed to another device such as my iPhone which is conveniently just sitting in my pocket.

Yes, you could argue it has great fitness tracking features etc etc etc.... But there are great apps for iPhone which offer similar features.

It's not an essential device to own, and I think this is why demand is currently poor. The excitment surrounding its release has worn off, and all the hype has died down....

Of course, this is just my opinion and you may disagree!

 

[Reds622]

Is all of this really all that difficult to figure out?

If the watch had a real purpose, besides being nothing more than a high end accessory/novelty item, at least one of the friends in my inner circle would be wearing one. But no one is, because it's a pointless device. Maybe for some people it serves a purpose, but even they are stretching to find why and how an apple watch has impacted their own life.

Fact of the matter is, smart watches didn't sell well before the Apple Watch, and there not selling well after the Apple Watch. I think the biggest failure/criticism that should be levied at the feet of Tim Cook is why he thought a smart watch that essentially does the same thing as all of the others would find more success. Is it strictly greed/complacency that he would be able to sell anything that has an Apple logo on it? I think that is the most discouraging part of all of this... That the CEO of the company did not actively try to release a revolutionary product motivated by innovation, but instead a product release that seems to be more about marketing, manipulation, and taking their customer base for granted by thinking they would buy anything that came with an Apple logo on it, no matter it's purpose.

 

[ToroidalZeus]

Here's the point: Apple never set sales expectations for the Watch. These are all made up by Wall Street analysts based on not much. And people are essentially declaring this product a dud based on sketchy or anecdotal evidence that doesn't match up with expectations never set by Apple in the first place. Hardly anyone had ever heard about Slice Intelligence prior to Apple Watch but now they're the definitive data point on Apple Watch sales? I'm sorry but that's stupid.

Well Tim Cook is playing the Wall Street game by pandering to investors looking for dividend and stock buybacks so he basically bought that upon Apple.

 

[Benjamin Frost]

Disagree. Tim is doing a great job. Don't blame him for the lack of innovation in the industry in general. We're in a technology plateau. There are a lot of exciting technologies in the early stages of development that will be exciting in the future and lead to amazing new products. But they are years away. People need to stop expecting a showstopper every year. It's unrealistic to the point of being ridiculous.

Tim is doing exactly what we need him to do. He's running a well oiled machine. He's selling tons of the bread and butter product (iPhone). Craig the used car salesman doesn't strike me as CEO material.

The watch is a bomb. Like you said, if sales were strong, he'd be throwing out numbers every chance he got. But that alone doesn't make him a bad CEO.

I agree with you that tech is in a plateau.

But the reason I am so condemning of Tim Cook is not just because of the Apple Watch; it's because of the lack of focus that has bedevilled Apple in all areas.

Yes, the iPhone has given record profits to Apple under Cook. But I think we are going to see a sharp drop in profits, either this year or in a year's time. My feeling is that Cook has been a great caretaker CEO to hold the fort, but that he is not the right man to take Apple to greater heights.

As a shareholder, I would be delighted to be proved wrong and see the share price rocket up again. But I try to see the truth.

 

[Saucesome2000]

Not useless, 'cause I'm guessing Apple would want to sell more whether other products are selling well or not.

You completely missed the point of my post.

 

[Saucesome2000]

They haven't revived ping. Use some common sense.

Common sense? Lol, this is the internet.

 

[maxsix]

Apple is to a certain extent the victim of a self inflicted wound. A company that lives on extreme levels of hype, self promotion and an unlimited advertising budget, is bound to encounter the slap of reality at some point.

Declining numbers have nothing to do with the fact that Steve Jobs fingerprints are missing from the product. Nor is their anything wrong with Apple Watch. It's a very good smartwatch.

Instead we are looking at the reality that the consumers have spoken and they simply aren't interested.

 

[RangerOne]

I was lukewarm on the Apple Watch. I bought one anyway, then was irritated waiting and waiting for it to arrive... but when it did, it look me no time at all to get hooked. Now I absolutely love it.

It is not a device that you sit and play with. It's an extension of your phone. I carry my 6 Plus in my pocket with me everywhere, but the watch is much more accessible. Notifications, particularly messages, are fantastic on this device. Directions via Apple Maps are so great that they alone justify the price for me (my phone irritatingly doesn't integrate well with the car, so when I use the phone for directions I can't hear audio prompts; the watch helps immensely with that). I love Apple Pay on the device (I use it everywhere I can, and find that it guides my decision to visit certain retailers over others). Siri integration is great, but I wish it had the option to verbalize commands back like iPhone. Other features like the remote camera viewfinder, Apple Remote, Keynote/PowerPoint Remote, etc. are just cool. And I can't wait for the Watch OS 2 features... but honestly, I like this device much more than I thought I would.

I used to forget my old watch all the time. I've never forgotten my Apple Watch once.

 

[Benjamin Frost]

I think they went with the watch because everyone else was doing it. I don't think Apple knows what the next revolutionary product line is. I don't think any tech company does. They're all grasping at straws with watches, VR, augmented reality glasses, smart TV's, smart home... To me they're all out of ideas and don't know what to do next. It's why I've been very "meh" about technology for a while.

The funny thing is, I think there is a sense that there is a lull, and the next big thing won't come along for five or maybe ten years. Apple Car, perhaps? Or a holographic phone?

But I wonder whether tech is not going to drastically change for twenty or thirty years. It seems to me that the form of an iPhone, iPad, laptop or desktop covers pretty much the ideal form factors for a computer. What could change that? For as long as we read, type, watch or listen, we will need a screen, speakers or headphones.

 

[usarioclave]

Instead we are looking at the reality that the consumers have spoken and they simply aren't interested.

Oh please. Next thing you know you'll be taking credit for their next quarter's numbers.

 

[MH01]

From 2007-

http://www.boston.com/business/glob...shares_fall_on_report_iphone_demand_may_slow/

Very true, though the iPhone was the beginning to revolutionise the mobile phone as we knew it, a problem existed.

The Apple watch..... We will see.... I myself do not see it as a solution to a current problem

 

[MH01]

Time will tell. The original, iPhone, iPad, iPod, thier first year numbers were very small compared to what followed.

I have my original iPhone, iPad, iPod ..... I have though returned my Apple watch.

 

[Bromeo]

I don't put much trust in outside stats. There is too much money to be made by manipulation of Apple stockholders in the form of well-timed negative reports. Today's dip in stock price was a buying opportunity. At least that's how I look at it.

Instead, I trust my own direct experience. My Apple Watch Sport continues to find itself on my wrist every day for the last two months. It provides a compelling experience and notably improves my life in these ways:

1. Glance at my wrist to see the time, temperature, sunset, day-date, and next appointment.
2. I travel a lot, so I don't have to set my watch again as I cross timezones.
3. See who's calling and even take a call anywhere in my home while my iPhone is in its designated spot in my home office.
4. Set a timer using Siri while cooking (loved my Android Wear watch for this same purpose)
5. Glance at an incoming text message, and if convenient/important, respond quickly and succinctly
6. Be alerted to emails from people on my VIP list, and I can even check all inboxes if I'm expecting something important.
7. Increases my awareness of day-to-day exercise. I am working out more consistently as a result.
8. The most convenient and secure way to pay at a surprising number of retailers.
9. Great way to use GPS while walking in the city - phone stays in pocket and eyes aware.
10. Time to stand... I'll be back.

Back... so, it's not without its gremlins for a 1.0 release, but Apple Watch sure is useful for me already and has integrated itself into my daily routine. I think we'll see it progressively improve both in hardware and software, like anything. Even so, if I lost or damaged my current Apple Watch, I would immediately replace it with another one. That tells me a lot, and I don't think I am all that much of a niche demographic, other than being a lifetime watch-wearer.

I know people make noise about it needing more battery life, built-in GPS, built-in cell phone, blood glucose sensor, coffee maker, thinner, lighter, waterproof, etc., but as far as I'm concerned, it works great today. It's already the same size and thickness as my Rolex Air-King, which is a small watch by most measures. Even my Rolex is not "waterproof" but merely "water resistant" to a specified depth. That Apple Watch, with speaker/microphone/crown/button/diagnostics port is even water resistant to 1m@30min is impressive... reminds me of the LifeProof case I used to sport on my iPhone 4.

Part of Apple's challenge is to delight customers with products they didn't even know they needed, despite what they said they wanted. I see Apple Watch as a significant step along the way to a future with wearable personal communicators, sort of like the comm badges in Star Trek, but much more humanized. I'm certainly delighted with it.

Cheers!

 

[mantan]

The one thing that seems missing is the excitement/hype from people who own one.

With the iPod, iPhone and iPad there was a buzz from the people who had one. They couldn't wait to show you what it could do. And in turn, it built excitement from other potential customers who knew them.

I know two people who own the Apple Watch. Both of them were relatively sheepish when they showed it to me. They both said they really didn't know what it added that their phone didn't give them. Neither felt it was money well spent. While they didn't come right out and say they regretted the purchase, I saw nothing that made me want one and I was glad I didn't spend the money on a preorder.

The only customers raving seem to be a few select early adopter tech heads.....

What made other Apple products wildly successful is they provided something the broad consumer audience wanted...even (like in the case of the iPad) they had no idea they wanted it.

 

[maxsix]

Oh please. Next thing you know you'll be taking credit for their next quarter's numbers.

Why so sensitive?

The company I am with is heavily populated with Apple enthusiasts and we also have a vast number of Mac Laptops in service. A small number of us bought Apple watches, yet the overall opinions from friends and family is it's a niche product we generally don't ever hear mainstream people talk about. That's a fact that might bother you, but we aren't emotionally attached to Apple.

 

[Saucesome2000]

Apple is to a certain extent the victim of a self inflicted wound. A company that lives on extreme levels of hype, self promotion and an unlimited advertising budget, is bound to encounter the slap of reality at some point.

Declining numbers have nothing to do with the fact that Steve Jobs fingerprints are missing from the product. Nor is their anything wrong with Apple Watch. It's a very good smartwatch.

Instead we are looking at the reality that the consumers have spoken and they simply aren't interested.

How do you figure that? The first iPhone sold 6.1 million units over five quarters at a time when nearly everyone used a phone. According to this article, they've sold an estimated 2.8 million Watches as of mid June, which would put them over the 3 million mark today in less than two quarters in a time when only (I believe it's 15-20%) of people wear watches.

I also just read an article that is blasting the fact that they've ONLY sold 2,000 of the Edition. That's $20,000,000 in revenue off one model!

Apple could cure cancer and people would still scoff that they haven't figured out a way to cure mortality.

 

[Even Longer]

The problem is simple: why I need a watch that do less things of my iPhone, is out of energy in less than 24 hours and practically don't works without my iPhone?

Let's turn the table: I got one not because I wanted a substitute for my iPhone, but because I wanted a Watch in the first line, which is capable to do some cool stuff besides being such.

if you see it that way, you may realise, that such device would come handy in many situations, despite being non-essential.

My cases (just a few to think of):

- reminders to lift off my ass + whole fitness stuff of it (sadly no official swimming apps so far)

- swimming (I do swim with it without any issues, sadly it can not count my lengths and SWOLF, but everything else is fine)

- phone calls answering or message reply, when your phone is somewhere near or in the pocket inside a sleeve.

- Email reading (especially when in car, because neither my Cayenne nor our brand new BMW 1Series support AirPlay yet)

- And, of course, the heart beat thingie & wrist taps & smoke drawings, which I send to my wife... That should definitely be a number one, when come to think of it.

Cheers!

 

[Benjamin Frost]

The watch pays for itself with just three things for me. Showing the temperature and my next appointment on the face, and always having the right time no matter what time zone. Then there's the fitness tracking and getting all my texts without grabbing the phone. Oh and the walking directions without holding the phone out in the open on the street. And the timer. Everything else is gravy. I won't bother with a regular watch for just the time (manually set) but I will wear this.

To my mind, your post neatly sums up why the Apple Watch has failed.

The things you like are so niche; most people simply don't need them, or can use their iPhones. Perhaps if it cost $100, it might have had a chance.

 

[marty11]

You've obviously never worn a watch before.

I own 5 Seiko divers.

 

[Benjamin Frost]

Helloo! Is this thing on? The data implies over $10 billion first year sales. With great margins.

How does this equate to a failure?

STEP 1. Imagine a number.
STEP 2. Don't tell anyone the number.
STEP 3. Ignore the number and claim flop because you don't like the product.

The problem is, Tim Cook is encouraging the bad rumours, and effectively confirming them, by withholding firm sales figures.

In the absence of numbers from Apple, we can only go by these firms who try to estimate. They become the voice of authority, and, so far, they haven't been challenged by apple.

Nature abhors a vacuum. The market abhors the lack of firm data, and interprets it negatively, as it should.

 

[Soccertess]

? Has Apple made even the slightest case that this watch is going to benefit our lives? The answer to those is no, without a doubt.

Actually, Tim cook did say his aim would be to change our lives with this watch. Slightly too ambitious.

https://www.macrumors.com/2015/02/10/cook-goldman-sachs-conference-2015

Personally, I really hope Apple still has the engineers to pull it off and offer something more substantial for second generation because it doesn't seem Tim is pushing his people to. Personally I would focus on the product and remember it is a tech company, not a jewellery company. He also didn't focus on his core base of customers which are tech enthusiasts.
The apple watch reminds me of a Wii but less successful..

Satya Nadella is someone to key an eye on... Now that is a leader..

 

[tampageek]

1st major launch for Tim Cook, 1st major fail.

I think the AW and 12-inch MB demonstrate a real difference in the post-Steve Jobs world. Steve was obsessed with quality, function and the user experience, whereas Tim Cook-era watch and MB seem like they were designed to be little more than underpowered accessories with huge profit margins. There is such a thing as "too thin" if getting there makes the product inferior.

Also, I find it hard to believe that Steve would have told everyone that if they wanted to buy the newest product that they should go online because there's nothing to buy in the store.

Apple is a hardware company and Tim is trying to turn it into a fashion accessory company. I think this is the wrong direction and will bite them in the butt if they forget how they got all their fans in the first place.

If they really want to innovate and impress, how about focusing on fine-tuning and updating their laptops, because lets face it, there is just so much you can do with a dumbed-down OS on a tablet or watch that needs a phone to work.

 

[tampageek]

shame as this is


im in the same boat... the last batch of mac have been serviced a lot due to the poor quality (mac used to be built well thats why they cost more than most pc's but now they are just a fashion accessory for most), I've got many macs here but with the current poor offerings i think we will be switching back to windows. i can get a much higher spec with a better build quality from those and i won't need to pay the extra $800+ for the light up apple on the back. also now apple have dropped all their "pro products" we have no reason to stay with them. i guess if its not an iPhone they don't care anymore... i can't wait for another company to make a i-phone killer, maybe then they will realize they should have looked after there loyal customers.

All true