Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

[maxsix]

Those who hate on Tim have missed the mark.

Living in the past is for old folks and those who can't make the grade in today's competitive environment. There's no going back, sooner or later they'll realize that.

Apple's done their best with Apple Watch and that's the current reality.

The watch isn't a failure, nor will it stop selling. It's a gadget with functions that some people like, beyond that it's overpriced and overhyped. Two facts that will be topics to argue for years.

 

[Yixian]

Absolutely agree that Apple is likely playing the longer game with the Watch, I don't see any need to, or sign that they are, abandoning it.

I just hope that they are ready to move quickly and make major reiterations sooner rather than later. If we have to wait till Gen 3 for a physical redesign then that's a problem imo.

 

[tampageek]

The whole smart watch category is a failure.

Agreed. They've been out for a while and never really caught on because they are an accessory, not a necessity. Apple may have thought they could make the more useful but it's still a watch with a tiny screen that u need tiny fingers to operate.

 

[ladycsr]

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.

I was just responding to the return issue. I think it is very reasnable to assume that the apple watch will have a higher returns in comparrison to apples other products.
When reviewers (some are apple fan boys) return their apple watches.. thats no good sign. http://fortune.com/2015/06/13/apple-watch-returned-disappointed/
I don't recall an apple product getting this much negativity.

as far as being a success? we just have to wait and see

 

[mejsric]

If Apple watch is a failure.. I just wonder hows the others?

 

[AppleScruff1]

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.

Of course they set sales expectations, they just didn't publicize it.

 

[ladycsr]

If Apple watch is a failure.. I just wonder hows the others?

Other smart watches? Bigger failures. Everyone was hoping apple would change that but I don't think even apple can.
It's a nitche product. Some people will buy it but it will not be an iphone success.

 

[KPOM]

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

The difference is that products like the iPhone come out once in a generation, if that often. It's a bit like the automobile. It solved a real problem and quickly displaced horses and buggies that were essentially unchanged for centuries. Should we be disappointed that 100 years later no one has invented another personal transportation device as revolutionary as the car?

The iPhone came along at exactly the right time. Technology reached the point where phones could become mini computers, and carriers were willing to subsidize it to make it look cheaper than it is. Technology doesn't move in linear progression. Aspects of technology might - witness Moore's Law - but things usually move in fits and starts. In between we see evolutionary products.

 

[ani4ani]

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.

Apple never published expectations, but they certainly had them - period. If they have been exceeded, they would be shouting from the rooftops, as usual.

 

[AustinIllini]

This is exactly what everyone expected for something that is a niche product.

 

[tampageek]

I'd quite like an Apple Watch but I wonder if sales have also fallen back due to availability?

I've my eye on the Space Grey Sport 42mm but reservations to collect it in store are always sold out (not long after 6AM BST) so are potential buyers waiting until stock levels improve?

Not only that it's a first generation watch... You only have to look at iPhone and iPad to see what kind of features Apple have implemented in future releases.

Yes - it is harder to sell something that's not available.

 

[KPOM]

Apple never published expectations, but they certainly had them - period. If they have been exceeded, they would be shouting from the rooftops, as usual.

The fact that they said all the way back in October that they wouldn't publish sales figures makes me believe they knew it would have a slow start by what has become Apple standards. The original iPod sold about 100,000 in its first three months. It was Mac only. Whether intentional or not, it let them figure out what worked, what didn't, and then when it finally did launch for Windows it sold pretty well. The original iPhone was also a slow seller, particularly outside the US. However, it let Apple figure out what worked, what needed improvement, and the rest is history.

I wouldn't be surprised if it's the same with the Watch.

 

[Rogifan]

If sales have dropped off 90% why does the US Apple store show shipping at 5-7 business days? When I search for iPhone 6 it says delivers July 9.

 

[citi]

You guys are silly. Wait for the next update when vendors can put native apps on it. I'll come back to this thread then.

 

[Rogifan]

Of course they set sales expectations, they just didn't publicize it.

But that's the point. We don't know what their expectations are. Our comparison point is estimates from Wall Street analysts. They don't know Appl'es expectations either.

 

[Rogifan]

Apple never published expectations, but they certainly had them - period. If they have been exceeded, they would be shouting from the rooftops, as usual.

Nope. Here's what Tim Cook said on one of Apple's earnings calls:

"I’m not very anxious in reporting a lot of numbers on Apple Watch… because our competitors are looking for it."

 

[mantan]

The difference is that products like the iPhone come out once in a generation, if that often. It's a bit like the automobile. It solved a real problem and quickly displaced horses and buggies that were essentially unchanged for centuries. Should we be disappointed that 100 years later no one has invented another personal transportation device as revolutionary as the car?

The iPhone came along at exactly the right time. Technology reached the point where phones could become mini computers, and carriers were willing to subsidize it to make it look cheaper than it is. Technology doesn't move in linear progression. Aspects of technology might - witness Moore's Law - but things usually move in fits and starts. In between we see evolutionary products.

But they also did the same thing with the iPad. Nobody saw it coming...it was 'just a big iPod touch' Who wants a tablet size device? The product lived up to the hype...even in Gen 1 you could see the potential.

The AW was touted as another groundbreaking product that was going to change how we lived. It was set up to be in the vein of the iPhone, iPad and iPhone...not the Apple TV. And as the first new major product line from Tim Cook, there was pressure to show he could launch a successful line.

While I'm sure he will tell us how sales have dwarfed other smarthphones and how the sales numbers just blew Apple away, it doesn't feel like this is a groundbreaking product....

 

[Technarchy]

I think Apple watch is a phenomenal product that will change what defines wearables. Not everyone gets it now, but they will.

Though the launch and handling of sales is a complete mess. Apple watch should have been handled just like an iPhone, iPad , Mac or iPod.

Where's Best Buy support? Target? Why did it take so long to get then in stores where I can just walk in and get one.

The majority of shoppers are still walk in. Cut off that market and expect your sales to tank.

 

[KPOM]

But they also did the same thing with the iPad. Nobody saw it coming...it was 'just a big iPod touch' Who wants a tablet size device? The product lived up to the hype...even in Gen 1 you could see the potential.
...
While I'm sure he will tell us how sales have dwarfed other smarthphones and how the sales numbers just blew Apple away, it doesn't feel like this is a groundbreaking product....

But did it really? The iPad certainly climbed the sales charts faster than any other Apple product in history, but it appears to have stalled a lot more quickly, too. Sure, it still sells a lot better than most pundits predicted it would back in 2010, but the post-PC era isn't quite here yet and may never arrive. We are at the point where Apple will sell about 10 million iPads per quarter. Could the Apple Watch achieve that some day? I think so.

 

[Glideslope]

What's the surprise? Just as I predicted. An over priced Hipster Toy. It's the new Mac Mini.

 

[KPOM]

Where's Best Buy support? Target? Why did it take so long to get then in stores where I can just walk in and get one.

The majority of shoppers are still walk in. Cut off that market and expect your sales to tank.

I think Apple would prefer to sell the Watch in department stores vs. Best Buy and Target.

 

[Soccertess]

Those who hate on Tim have missed the mark.

Living in the past is for old folks and those who can't make the grade in today's competitive environment. There's no going back, sooner or later they'll realize that.

.

Well not criticizing Tim could also be said to miss the Mark. No one is suggesting Steve should come back so not sure what you mean by there is no going back..

I think people here are saying Tim isn't the right person to lead Apple and keep the innovation going. CEOs are replaceable so why not criticize him.

Tim really seems like an intrim CEO to hold the fort. That's all he is really doing, and I must say he hasn't done an atrocious job like Ballmer, but you can only hold the fort for so long.

 

[CFreymarc]

The whole smart watch category is a failure.

Far from that. That fact that Pebble managed two Kickstarter campaigns with both north of $10 million states there is demand for this class of product. My take is Apple hit this market way too hard trying to blow out the existing players such as Pebble Time and Android Wear. If anything, they came into the market with too high of a price point. But then, this is Apple so they are used to selling high and then lowering price after the first shipment.

IMO, what we'll see is a price and feature shake down. Most analysis see the cost of production of an Apple Watch at around $84 or less. That is plenty of margin to play with at their existing prices. Drop the price of the Apple Watch Sport down to $199 and I see it selling like crazy. This may be the plan come Christmas season.

 

[KPOM]

Far from that. That fact that Pebble managed two Kickstarter campaigns with both north of $10 million states there is demand for this class of product. My take is Apple hit this market way too hard trying to blow out the existing players such as Pebble Time and Android Wear. If anything, they came into the market with too high of a price point. But then, this is Apple so they are used to selling high and then lowering price after the first shipment.

IMO, what we'll see is a price and feature shake down. Most analysis see the cost of production of an Apple Watch at around $84 or less. That is plenty of margin to play with at their existing prices. Drop the price of the Apple Watch Sport down to $199 and I see it selling like crazy. This may be the plan come Christmas season.

Tim called BS on the cost estimates last quarter. I don't think $349 is a bad selling point, though I wouldn't be surprised to see a $299 or even $249 version at some point (maybe they'll carry over the original Sport next year). That said, they actually have more room in the stainless steel version. Steel is just as cheap as aluminum to produce, and IMO the steel watch looks more like a regular watch. We might see more price flexibility there.

Things are just getting started. Plus, remember that right now Apple Watch is an incomplete product. Watch OS 2 should address a lot of the initial concerns of reviewers (who seem fixated on apps for some reason). In the future we might see GPS, which would address the concerns of the fitness crowd.

 

[Glideslope]

Those who hate on Tim have missed the mark.

Living in the past is for old folks and those who can't make the grade in today's competitive environment. There's no going back, sooner or later they'll realize that.

Apple's done their best with Apple Watch and that's the current reality.

The watch isn't a failure, nor will it stop selling. It's a gadget with functions that some people like, beyond that it's overpriced and overhyped. Two facts that will be topics to argue for years.

"A reformer is one who sets forth cheerfully toward sure defeat."
Lydia M. Child