Ming-Chi Kuo, a well-known and well-connected KGI Securities Apple analyst, states that the Apple Watch, more specifically speaking that of its shipments, will fall more than 25-percent this year as compared to 2015.
Analyst Proclaims That Apple Watch Shipments Will Fall More Than a Quarter This Year
Kuo writes in an investment note towards clients that the analyst thinks Apple Watch shipments will max out at 7.5-million units for this year. While many might think that this is still a huge number, do note that this is a significant drop since last year’s shipments of the wearable tech from Apple. For comparison’s sake, last year’s shipments was that of 10.6-million units; therefore this year there will be a drop of about 3.1-million units for the device.
If the analyst’s predictions are correct, then the number will even be worse since it represents a full calendar year in terms of sales for the year 2016, but only counting 8-months for the year 2015. Why the irregularity in counting the months? Because the Watch was not sipped immediately last year.
Furthermore, if Kuo’s analyses about Apple’s Watch are indeed right, then it would make the tech giant’s wearable tech will be the first device from Apple’s product line in years to be seen with such a huge decline in sales. In the case of Apple’s other products, namely the iPhone, iPod, and the iPad, the second year of sales were actually more superior than their first. Even the Apple TV, which was deemed as only a “hobby” item in the early days of its original launch, had stagnant sales seen in its second year but did acquire a boost in its third year.
So why is this happening to the Watch? Kuo blames the usual suspects for the Watch’s failure ever since it was launched, and these are (1) it’s too much reliant on the iPhone to get a suitable amount of functionality, (2) it has a very limited battery life, and (3) it lacks a decent list of apps. In comparison with the dozens and dozens of Android Wear out in today’s market, there are those that have already defeated such problems and have gained the hearts (and wallets) of numerous markets.
Kuo also points about pertaining to his thoughts on the 2nd generation of the Apple Watch, which might come sometime soon. The analyst thinks that mass production of the new wearable tech will begin in the fiscal 3rd quarter of this year.