Ming-Chi Kuo: Global Apple Watch Pre-Orders Exceed 2.3 Million Units

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KGI Securities analyst Ming-Chi Kuo, who has a respectable track record at reporting on Apple, has issued a new note to investors estimating that global pre-orders for Apple Watch has exceeded 2.3 million units. Previously, a study from Slice Intelligence estimated that there were 1 million Apple Watch pre-orders in the United States.

We estimate production of Apple Watch around 2.3mn units in March-May. Mass production of Apple Watch began in March and will likely reach 2.3mn by end of May. Considering that most consumers who preordered will not get the device until June, we estimate global preorders of over 2.3mn units, with Apple Watch Sport, Apple Watch and Apple Watch Edition representing a respective order allocation of 85%, 15% and less than 1%.
Kuo notes that Apple plans to expand the supply chains for Apple Watch, with the Cupertino company targeting production of 2 - 3 million units per month. However, they estimate that the potential bottlenecks in production could be the vibrators that power haptic feedback from AAC and AMOLED displays supplied by LGD.

The Apple Watch's vibrator technical problems come from being stuffed in a smaller form factor than an iPhone while needing a more accurate vibration frequency than the vibrator in an iPhone. Additionally, the AMOLED display needs both good color performance and a long life span.

Kuo predicts that Apple could reach 2.5 million units produced in June if production bottlenecks are absent. He also isn't sure whether the Apple Watch will be a hit, estimating that less than one-tenth of iPhone owners have pre-ordered the Apple Watch, suggesting that hardcore Apple fans have made up the bulk of Watch pre-orders thus far.

Apple has not yet provided official sales figures for the Apple Watch, so the exact number of pre-orders the Watch has received remains to be seen. The Apple Watch sold out online 6 hours after pre-orders were available, with many shipping dates slipping to June. When responding to a MacRumors reader who was concerned about the Apple Watch launch, Apple noted that deliveries could arrive sooner than expected.

Article Link: Ming-Chi Kuo: Global Apple Watch Pre-Orders Exceed 2.3 Million Units
 

syndalis

macrumors regular
Jan 23, 2008
118
181
Has officially sold more units than pebble and all of android wear combined.

Fastest selling new apple product ever.

People still not sure if it is going to be a success


:rolleyes:
 

newdeal

macrumors 68020
Oct 21, 2009
2,378
1,479
I really hope that they have some massive announcement of connected home integration for the watch/apple tv at WWDC.
 

JCrz

macrumors 6502
Sep 12, 2014
446
1,307
U2

They really need to get all the members of U2 to wear this thing.
 

boshii

macrumors 68040
Jul 6, 2008
3,672
716
Atlanta, GA
And yet people will still call it a failure.

We get it. You don't like it. Grow up.
If you read the story you would've seen that less than one-tenth of iPhone owners preordered the watch. I wouldn't call it a success yet.

These numbers also don't account for the people who preordered multiple and will return some.
 

Dwalls90

macrumors 601
Feb 5, 2009
4,906
2,131
That's really low production figures.

If they estimate 2.3M+ were pre-ordered, and Apple would be lucky to produce 2.5M by June, that means there will be severe backlogs into at least the mid-late summer.
 

GizmoDVD

macrumors 68000
Oct 11, 2008
1,858
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If you read the story you would've seen that less than one-tenth of iPhone owners preordered the watch. I wouldn't call it a success yet.
You expect everyone who owns an iPhone to get one? Really?

Might as well call every video game every made a failure as well.

Every DVD.

Everything.
 

2457282

Suspended
Dec 6, 2012
3,327
3,014
I am waiting for timmy to give us the numbers. But all indications are that this Apple watch thing is a winner. I thought a few million a year would be awesome, but 2.5 a month is just mind blowing. Given that people are not going to replace their watch every year (well maybe not given, but in my world...) they will plateau fairly quick i suspect.
 

nick727

macrumors member
Aug 12, 2006
40
2
Going to need more functionality before I buy one. I like the privacy of typing texts and ear phone calls. Other than that, it'd just be a watch with calendar reminders.
 

HurtinMinorKey

macrumors 6502
Jan 18, 2012
405
155
I am waiting for timmy to give us the numbers. But all indications are that this Apple watch thing is a winner. I thought a few million a year would be awesome, but 2.5 a month is just mind blowing. Given that people are not going to replace their watch every year (well maybe not given, but in my world...) they will plateau fairly quick i suspect.
This is a loyalist product. There is no reason to expect that it will be able to sustain that level of sales going forward.
 
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doelcm82

macrumors 68040
Feb 11, 2012
3,566
2,523
Florida, USA
Not by a long shot.

Go look up initial sales of iPods and iPhones on release weekend.
When the iPhone was a new product, it sold 270,000 on its first day.

In 2002, Apple said it had only sold 600,000 total iPods, I think that includes all first and second generation iPods, so the first day sales could not have been anywhere near Apple Watch numbers.
 

sshambles

macrumors 6502a
Oct 19, 2005
728
981
Australia
Nice. And they don't even have my order yet! Coming later in the year, though I most likely won't have to wait for stocks by then. :apple:
 

boshii

macrumors 68040
Jul 6, 2008
3,672
716
Atlanta, GA
You expect everyone who owns an iPhone to get one? Really?

Might as well call every video game every made a failure as well.

Every DVD.

Everything.
I never said 100% of iPhone owners need to buy a watch for it to be a success; but like the article says, one-tenth of iPhone users buying the watch means only the hardcore Apple fans have preordered. That doesn't make it a success.
 

GizmoDVD

macrumors 68000
Oct 11, 2008
1,858
1,622
SoCal
I never said 100% of iPhone owners need to buy a watch for it to be a success; but like the article says, one-tenth of iPhone users buying the watch means only the hardcore Apple fans have preordered. That doesn't make it a success.
It infact does.

Buying a $350+ accessory on top of owning an iPhone plus future App sales means it's a huge success.
 
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