Apple Watch Demand Slides Significantly in June as Launch Momentum Wanes

[iSee]

I use mine less after the first month. I thought it would be more useful. Recently, I had to wipe my phone and I had to lose all my workout info. No way to backup my workouts. Perhaps my bad experience is just unique to me but my feeling about the Apple watch matches the sales graph.

It's only included with the encrypted backups to your local machine.

Well, thanks for FUD guys.

This got me legitimately worried and I spent time looking into it. Health and fitness data is backed up with encrypted iTunes backups and iCloud backups. So its only people using unencrypted iTunes backups that need to worry -- and those people have a bunch of *other* things to worry about, too. iTunes won't even let me select unencrypted iTunes backup.

Does it really make you feel good to subtract from this world we live in rather than add to it?

 

[tampageek]

I don't think this is about revenue...the iPhone is always going to be the bell cow. It's the product with the largest customer base and device with the shortest lifespan. People are conditioned to upgrade their phone every 1-3 years. Most people usually don't upgrade their laptop or tablet nearly as frequently.

The Apple Watch was the first new product line under Tim Cook. There was the question if Apple could create the same magic and marketing buzz for a new product with Steve Jobs. If it's considered a dud, people will start to question if Apple can still innovate....or will they just keep issuing thinner and lighter phones, laptops and tablets and cash in.

Lets not forget that the 2 yr cycle of the iPhone has a lot to do with carrier contracts. With recent changes that get rid of the subsidies, people may have to keep their phones longer regardless of device upgrades. This only complicates things for watch sales. It can get very expensive trying to keep up with upgrades.

 

[AJsAWiz]

It's too bad the article's author was too lazy to even look up Slice's methodology.

That said, he's right that the iPhone wasn't an immediate mass hit. It took a price cut and added features to do that. Such would obviously help the Apple Watch as well.

I also think it needs more case materials (and shapes). I think it was a fashion mistake to make the gold color only available in a hugely expensive version, just because Jon Ive wanted to have a high end watch on his resume. Many, many people wear gold colored jewelry in part because it matches their complexion or taste. Certainly more than wear black or silver.

http://www.fool.com/investing/gener...own-90-who-cares.aspx?source=eogyholnk0000001

 

[Benjamin Frost]

I don't think the watch was supposed to be some great example of innovation. It seems like they just released it because of all the rumors that existed for years.

By creating the watch they killed to birds with one stone: they killed the rumor mill, while at the same time they gave the people (some people, the ones who own one now) what they wanted.

More damaged would have been done if they had not released something. I don't think anyone thought it was going to be the next iPad. If it's considered a dud, I (and most people) will not start to question if Apple can innovate.

Are you kidding?

The Apple Watch was Tim Cook's first big test to see whether he could inspire Apple to create a worthy successor to all the products Apple made under Steve Jobs.

He has been found wanting. The Watch is a bust, and Cook's for the chop.

 

[The Game 161]

think it's unfair to say it's a bust. It's not been out long enough and sales wise it has done well compared to many other smart watches on the market. It takes time for watches to be a success right out the gate.

 

[lazard]

think it's unfair to say it's a bust. It's not been out long enough and sales wise it has done well compared to many other smart watches on the market. It takes time for watches to be a success right out the gate.

Considering the brand loyalty Apple has and the fact that people will buy anything with an Apple logo on it, the Apple Watch has so far been a failure.

 

[The Game 161]

Considering the brand loyalty Apple has and the fact that people will buy anything with an Apple logo on it, the Apple Watch has so far been a failure.

For a smart watch though it hasn't been a failure. I guess alot don't find the need for a smart watch and some likely think it takes away from using your phone.

 

[mantan]

think it's unfair to say it's a bust. It's not been out long enough and sales wise it has done well compared to many other smart watches on the market. It takes time for watches to be a success right out the gate.

Tim Cook talked about the 'enormous number of things it will be able to do' and how people will wonder 'how can I live without one.' He directly compared it to Apple breaking into the mp3 and tablet industry. It seems like it's pretty much the same as every other smartwatch...it just sells a few more since Apple has a very loyal fanbase.

At this point smartwatches are a niche product. And the AW has brought nothing new to the table that brings it to the mainstream. If they would have been able to implement some of the health things touted early on...it might have been a different. But right now it's pretty much just a 'prettier' version of what's already out there.

People saying the expectations were never that high are moving the goal posts to fit the narrative they want.

 

[The Game 161]

My question is

what do people actually want from a watch? what is it thats making it come up short?

 

[JSB1540]

My question is

what do people actually want from a watch? what is it thats making it come up short?

Agree 100%! Most of us simply had the time and date before. My SBSS is a beautiful watch and does so much more.

 

[Elvergun]

Are you kidding?

The Apple Watch was Tim Cook's first big test to see whether he could inspire Apple to create a worthy successor to all the products Apple made under Steve Jobs.

He has been found wanting. The Watch is a bust, and Cook's for the chop.

I don't agree with this...but since I don't like Cook at all, I hope you are right.

 

[mantan]

My question is

what do people actually want from a watch? what is it thats making it come up short?

IMO, therein lies the problem. Apple has always been at it's best when it gives people something they want...even when they didn't realize they wanted it.

The iPod/iTunes gave people a much easier/simple way to purchase and consume music.

The iPhone combined the iPod with a phone and a regular browser experience.

The iPad gave people an entirely different way to consume content and utilize apps - both at home and at work.

If Apple would have asked customers what they wanted, they probably wouldn't have gotten those products as answers. Innovation would be Apple coming up with a device people just had to have for a reason they didn't know existed.

 

[PBRsg]

90% of the reason the Apple Watch is not selling is its cost.

 

[I7guy]

Agree 100%! Most of us simply had the time and date before. My SBSS is a beautiful watch and does so much more.

The potential of the Apple watch is to be tapped into the apps the developers will write, specifically for the Apple watch. A whole other ecosystem. One could say the same for health app and homekit. The potential is there just not tapped.

 

[Robnsn2015]

This is a very interesting thread with a variety of good points made. I just have some random thoughts:

1. I question whether the sales data is accurate, but oh well.

2. How is a product that has been available for sale for about 2 months considered a failure?

3. What were the sales goals of this device? If we don't know what the sales goals are and we don't know how many units or what revenues the device brought in, how can we classify it as a failure?

4. Why are people comparing (possible) Apple Watch sales to iPhone sales? Isn't that an "apples or oranges" comparison? Wouldn't it make more sense to compare the Apple Watch to competing, similar products. Here's an analogy. Honda makes cars and they more recently started making airplanes. Should people compare sales of the Honda Accord to the Honda Jet, or should they compare sales of the Honda Accord to the Toyota Camry?

 

[The Game 161]

This is a very interesting thread with a variety of good points made. I just have some random thoughts:

1. I question whether the sales data is accurate, but oh well.

2. How is a product that has been available for sale for about 2 months considered a failure?

3. What were the sales goals of this device? If we don't know what the sales goals are and we don't know how many units or what revenues the device brought in, how can we classify it as a failure?

4. Why are people comparing (possible) Apple Watch sales to iPhone sales? Isn't that an "apples or oranges" comparison? Wouldn't it make more sense to compare the Apple Watch to competing, similar products. Here's an analogy. Honda makes cars and they more recently started making airplanes. Should people compare sales of the Honda Accord to the Honda Jet, or should they compare sales of the Honda Accord to the Toyota Camry?

Agreed I think it has done fine personally for a first product.

 

[CEmajr]

Interesting to see the large number of people taking such a flawed report as gospel on Apple Watch sales. I guess anyone can just print whatever they want regarding Apple and throw it on the net and call it journalism.

The methodology used to draw the conclusion of this 'flop' is poor enough that it can't even be taken seriously. We'll have to wait until Apple actually reports their numbers in the next financials to see how good or bad Apple Watch sales really are. I wouldn't be shocked to see that they've handily outsold every other smartwatch on the market. You'd think some people actually thought it was going to sell at iPhone levels or something. Plus this thing has only been out a couple months. How the heck can one judge whether a new product is a success or failure in such a short time? By that logic even the original iPhone was a failure.

The actual article used to draw these conclusions so far can be dismissed as clickbait using "Apple" and "negative" in the headline to attract attention. I would say that I'm surprised that Macrumors is even using it as a source for an article but then again Macrumors also ran the original story on iPhone 6 bending based on a handful of forum posts.

 

[Robnsn2015]

For your "average" person in North America, "mainstream" consumer electronics consist of: 1) a phone, 2) a TV, 3) something you plug into a TV, 4) whatever car stereo came with the are. Everything else is basically a niche product. However, niche products can be VERY lucrative. For example, Nintendo has been making a substantial amount of money over the past 25 years off of handheld gaming devices, even though only a subset of the population uses such devices.

I'm sure Apple did some market research before releasing the Apple Watch. I don't think the smart watches will be mainstream devices, but I believe Apple Watch should add a nice billion dollars or so to Apple's coffers.

 

[RossMak]

My question is

what do people actually want from a watch? what is it thats making it come up short?

For me it was the lack of built in GPS I am a runner and cyclist I don't carry my phone with me on either of these activities especially as I have the 6+ Yes I am sure some people do. I choose not to

I bought the Garmin Fenix 3 and it does everything I need/want, it to it shows my notifications. I wouldn't ever use an apple watch to reply to them anyway as I hate using Siri (I'm Scottish, it doesn't like my accent)

The apple watch is the nicest looking watch out there IMO however the battery life and the lack of GPS done it for me.

Naturally not everyone will have the same experience as me, and I don't rule it out Apple watch for future generations

 

[Keirasplace]

A watch that you have to charge for hours every single day just to tell time?

"Sorry I was late for work again guys, my watch was charging."

Basically, you should lied, it last days if you just use it for telling time. Good to refresh my ignore list bud.

 

[lordofthereef]

Even by your own logic this doesn't make sense. Slice estimated 1 million preorders and 1.8 million post-launch orders. If the super fans did the preorders, that means almost double the number of non-super fans ordered the product. In 9 weeks in one country.

And that's if you take Slice's data as fact.

I do not believe I stated that only super fans were buying the product. I reread what I said, just to make sure. Worth noting that I am sure plenty of super fans fall into the cateogry of "preorders were overwhelmed so I decided to wait until they had these in store anyway".

Either way, I knew you would bethe one and only one quoting my post lol. You do this in all news post. You are the Apple White Knight, on a mission to stamp out even the tiniest bit of Apple doubt. Maybe it's time to find another hobby. But... since that's not happening, it's easier to just block you. Apparently it will lessen both of our headahces.

 

[mantan]

For your "average" person in North America, "mainstream" consumer electronics consist of: 1) a phone, 2) a TV, 3) something you plug into a TV, 4) whatever car stereo came with the are. Everything else is basically a niche product. However, niche products can be VERY lucrative. For example, Nintendo has been making a substantial amount of money over the past 25 years off of handheld gaming devices, even though only a subset of the population uses such devices.

I'm sure Apple did some market research before releasing the Apple Watch. I don't think the smart watches will be mainstream devices, but I believe Apple Watch should add a nice billion dollars or so to Apple's coffers.

I do agree with your last statement. Apple is charging such a premium for this product....especially the non-sport models and bands, that it will likely be profitable.

Tim will continue to feed the monster...which is really what the shareholders care about. But it would be nice to see some innovation under his watch.

 

[JSB1540]

I use mine less after the first month. I thought it would be more useful. Recently, I had to wipe my phone and I had to lose all my workout info. No way to backup my workouts. Perhaps my bad experience is just unique to me but my feeling about the Apple watch matches the sales graph.

I find mine becoming more useful each day. I have cut fishing for the phone in my pocket by about 90%.

 

[BaldiMac]

I do not believe I stated that only super fans were buying the product. I reread what I said, just to make sure. Worth noting that I am sure plenty of super fans fall into the cateogry of "preorders were overwhelmed so I decided to wait until they had these in store anyway".

"Apple loyalists (and I don't use that as an insult) picked this up, but the general public doesn't seem to be doing the same."

The general public is picking it up. Calling almost 3 million people in the US "Apple loyalists" (which is a stereotype even if you claim it's not an insult) doesn't change the fact that they are the general public.

Either way, I knew you would bethe one and only one quoting my post lol. You do this in all news post.

I've only commented on 12 news or blog posts this year.

You are the Apple White Knight, on a mission to stamp out even the tiniest bit of Apple doubt. Maybe it's time to find another hobby. But... since that's not happening, it's easier to just block you. Apparently it will lessen both of our headahces.

I don't like to complain and predict failure in a public forum. I like to try and understand the most successful company in the world instead of using whatever "evidence" pops up to support my pre-determined vision of the future.

I'm not more of a "Apple Loyalist" than most of the general public that buys Apple products. I've had 3 Macs, 2 iPhones, and 2 iPods in the last 12 years. I use Windows PCs on a daily basis. I use Android tablets regularly, but don't own them. I value the consistency that Apple provides across their products.

I do like to post about things that interest me and Apple happens to provide a good context for those discussions. Copyright and antitrust are favorite topics for me based on how I make a living. I'm also amazed at how Apple has turned the turned traditional views of market share on their head, and yet so many people jump on every downturn in Apple's market share as a sign of the next flop.

I like Apple products and think that Apple as a company makes more good decisions than bad. Yes they make mistakes, and big ones. I don't feel the need to criticize them publicly for everything they do wrong. I like to look for the reasons that they came to the bad decision. Does that make me a fanboy or just not an *******?

I'm sorry you can't deal with with reading something that you disagree with. Hope your headache get's better! Why you need to call people names and fit them in a little box, so you can dismiss them, is beyond me.

 

[chatin]

The Edition line is a big risk. Risk alienating the top crust of mac purchaser who really is living hand to mouth but nobody knew until edition.