Tim Cook: Apple Watch Sales 'Exceeded Expectations'

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 21, 2015.

  1. MacRumors macrumors bot

    MacRumors

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    As expected, Apple did not share specific sales numbers on the Apple Watch during its third quarter earnings call, but Apple CEO Tim Cook did shed some light on how well the Apple Watch did during its first quarter of availability. According to Cook, Apple Watch sales "exceeded expectations" despite supply continuing to trail demand at the end of the quarter. "We feel really great about how we did," he said.

    Cook also pointed out that Apple Watch sales during its first nine weeks of availability were higher than sales of the original iPad and iPhone when those devices first became available for sale. June sales, he said, were higher than those in April or May, suggesting reports of falling demand in June were inaccurate.

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    Apple includes the Apple Watch in its "Other Products" category in an effort to keep its competitors from getting a detailed look at its shipments. Other Products includes the Apple Watch, the iPod, the Apple TV, and accessories like Beats headphones.

    During the third quarter of 2015, the Other Products category saw $2.6 billion in revenue, up from $1.7 billion during the second quarter of 2015, a difference of nearly a billion.

    Cook said it "would not be accurate" to look at sequential change or year over year change and assume that number represents the actual Apple Watch revenue because there are a lot of factors at work, including declining iPod and accessory sales, which are also included in the category. In a statement made to the Associated Press, Luca Maestri said something similar, suggesting revenue from the Apple Watch amounted to "well over" the $952 million increase between the two quarters.
    Aside from analyst estimates that range from an estimated 2.85 million sales to 5.7 million, that rough $1 billion revenue figure that accounts for the difference between Q2 and Q3 is the closest we've come to learning how many Apple Watch devices Apple sold.

    Cook went on to say that beyond the "very good news in sales," Apple is excited about how the Apple Watch is positioned for the long term. There are now 8,500 apps available for the device, and the company is poised to release watchOS 2 in the fall, which will bring native apps and performance improvements. "We believe the possibilities for Apple watch are enormous," said Cook.

    Article Link: Tim Cook: Apple Watch Sales 'Exceeded Expectations'
     
  2. nezr macrumors regular

    nezr

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  3. Pbrutto macrumors 6502a

    Pbrutto

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  4. rob25255 macrumors regular

    rob25255

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    Tim's statement would be helpful if we knew what the expectations are.
     
  5. ZipZap macrumors 603

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    I just find this hard to believe. Guess most bought the $399 watch. Its a toy after all.
     
  6. Reds622 macrumors regular

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    #6
    According to same analysts, Apple Watch sales were around 1.2 million..

    Doesn't seem all that strong to me, but I must admit, I have always been extremely skeptical of this product.
     
  7. c55, Jul 21, 2015
    Last edited: Jul 22, 2015

    c55 macrumors regular

    c55

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    Their expectations I'm assuming were "Only the die hard tech customers and the curious bunch will actually buy this, and they did."

    Edit:
    Pebble: over a million
    Moto 360 and Android: 720k since early 2015
    Samsung Gear(s): estimated 1.2 million devices shipped since and of 2014, 800k in 2013
     
  8. oneMadRssn macrumors 601

    oneMadRssn

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    I agree with Tim Cook's comments regarding the upcoming holiday shopping season - that will be the real test of the Apple Watch's success.
     
  9. coltman75, Jul 21, 2015
    Last edited: Jul 22, 2015

    coltman75 macrumors regular

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    Especially over the last few weeks, I feel like I've been seeing the watch pop up everywhere. This morning, my barista at Starbucks had one on. I was in a meeting at work yesterday, and four different people had Apple watches on—all stainless steel. Even when I was going for a run, it seems like most people who wear watches while running are wearing Apple watches. I think these are going to be ubiquitous in the next couple years.
     
  10. RDeckard macrumors regular

    RDeckard

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    I can't wait to read all of the insightful opinions, which dissect Apple's financial performance, right here!

    Because we all know that this is where all of the "super-savvy financial analysts and investors" (with huge stock portfolios) hang out, right?
     
  11. Chuck Kostalnick macrumors regular

    Chuck Kostalnick

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    BREAKING NEWS: Apple Watch is doing well. Blogging sites, just hours ago bashing sales numbers, now praising the success of the Watch.
     
  12. keysofanxiety macrumors G3

    keysofanxiety

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    You and me too, I can't help but remember the comments on MR after the Galaxy Gear was released, laughing how Apple wouldn't release something with less than 2 days battery life and a touchscreen/simple zoom interface. As far as I can see it's just a nicer version of a Gear. Nobody I know who's tried it has said its interface was intuitive like the iPhone immediately was, though they'll 'learn to love it'. =/

    Ah well, I'm not one to judge on how people spend their money. If it works for them and it's a useful tool, it's good that Apple have a product in the wearable market.
     
  13. Reds622 macrumors regular

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    Are we allowed to use information we get from those who are? Or are they off limits as well?
     
  14. RDeckard macrumors regular

    RDeckard

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    - Yours truly,
    Samsung
     
  15. rob25255 macrumors regular

    rob25255

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    #15
    If it's going to do well during the holidays maybe they should sell Apple Watch gift cards.
     
  16. Karma*Police macrumors 68000

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    I agree; just like the Mac, iPod, iPhone and iPad were toys to some people.
     
  17. rob25255 macrumors regular

    rob25255

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    They have given a pretty good indication of how many they have sold so why not be transparent.Im all in on the watch but can't persuade anyone I know to get one despite them mostly having more money than me and being impressed with what it can do.
     
  18. NIKKG macrumors 6502

    NIKKG

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    People just don't wear watches as much as they used too. The smartphone is all you need.
     
  19. RDeckard macrumors regular

    RDeckard

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    You mean, like Wall Street "analysts?" Sure, if it makes you feel better!

    But those jamokes are wrong the VAST majority of the time too.
     
  20. citysnaps macrumors 603

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    Right. Low expectations. And that's why Apple spent a HUGE amount of money developing the Watch, a new product category, and all the marketing and preparation at the stores to handle sales.

    Yes, to sell a product with low expectations...
     
  21. Reds622 macrumors regular

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    Vast majority of the time when they are privy to the actual data? Not so sure about that.. The numbers are the numbers. There is an increase in the "Other" category provided by Apple.. A reasonable estimate can be gleaned from this number. So not sure what you're really talking about. Unless you're saying Apple is lying about it's own numbers.
     
  22. RDeckard macrumors regular

    RDeckard

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    They're not being "transparent" because, as I mentioned in the previous MR post, Tim Cook said that Apple would NOT be reporting those numbers months before the watch even went on sale.
     
  23. postpc macrumors regular

    postpc

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    #23
    Trying to hide it in 'Other products' reveals Cook's insecurity and complete lack of confidence in this device.
     
  24. rob25255 macrumors regular

    rob25255

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    Agreed but it's pretty clear that it's in the 3 million ballpark.All I'm saying is why be cryptic. Either say it how it is or reveal nothing.
     
  25. RDeckard macrumors regular

    RDeckard

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    I'm saying that those Wall Street analysts/jamokes are usually wrong about most things, especially when it comes to Apple.
     

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310 July 21, 2015