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Apple Watch 2 Expected to Focus on Internal Upgrades Rather Than External Changes, Launch in Late 2016
Apple Watch shipments will decline more than 25 percent year-over-year in comparison to 2015, according to a new research note issued by KGI Securities analyst Ming-Chi Kuo. The wearable device sold an estimated 10.6 million units in eight months last year, but Kuo predicts that even with the launch of the Apple Watch 2, and a full twelve months of sales, the device's shipments will still come in at less than 7.5 million units in 2016.
The analyst describes an "immature wearable device market" and a few key lacking features of the first-generation Apple Watch -- iPhone independency, no killer app, limited battery life, etc. -- that will contribute to its overall sales decline prior to the launch of the second-generation version. Kuo believes that the Apple Watch 2 will enter mass production in the third quarter of 2016, in line with a fall launch alongside the iPhone 7, so its overall contribution to shipping numbers for the year is predicted to be limited.
Kuo's note also predicts some of the features of the next version of the Apple Watch, which is expected to adopt the same upgrade cycle as the iPhone. In essence, 2016's Apple Watch 2 will see some under-the-hood spec improvements and possibly minor form factor changes, while fans will have to wait until 2017 for a massively redesigned wearable from Apple. The similar design is one of Kuo's biggest reasons for declining Apple Watch shipments in 2016, despite even the uptick in sales the device could have during the holiday season.
The recent KGI Securities research note directly conflicts with a report from less-reliable Apple analyst Brian White, released last Friday, that predicted the Apple Watch 2 will not only launch in two to three months, but adopt a 40 percent slimmer case design. That launch window would put a reveal by Apple at WWDC in June with a launch following a few weeks later.
In either launch scenario, the Apple Watch 2 is rumored to have a bevy of feature improvements over its predecessor, including a FaceTime video camera, an expansion of its Wi-Fi capabilities, and new model tiers. Rumored casings of the next iteration of the device could possibly even incorporate new materials such as titanium, tungsten, palladium or platinum.
The analyst describes an "immature wearable device market" and a few key lacking features of the first-generation Apple Watch -- iPhone independency, no killer app, limited battery life, etc. -- that will contribute to its overall sales decline prior to the launch of the second-generation version. Kuo believes that the Apple Watch 2 will enter mass production in the third quarter of 2016, in line with a fall launch alongside the iPhone 7, so its overall contribution to shipping numbers for the year is predicted to be limited.
Kuo's note also predicts some of the features of the next version of the Apple Watch, which is expected to adopt the same upgrade cycle as the iPhone. In essence, 2016's Apple Watch 2 will see some under-the-hood spec improvements and possibly minor form factor changes, while fans will have to wait until 2017 for a massively redesigned wearable from Apple. The similar design is one of Kuo's biggest reasons for declining Apple Watch shipments in 2016, despite even the uptick in sales the device could have during the holiday season.
The recent KGI Securities research note directly conflicts with a report from less-reliable Apple analyst Brian White, released last Friday, that predicted the Apple Watch 2 will not only launch in two to three months, but adopt a 40 percent slimmer case design. That launch window would put a reveal by Apple at WWDC in June with a launch following a few weeks later.
In either launch scenario, the Apple Watch 2 is rumored to have a bevy of feature improvements over its predecessor, including a FaceTime video camera, an expansion of its Wi-Fi capabilities, and new model tiers. Rumored casings of the next iteration of the device could possibly even incorporate new materials such as titanium, tungsten, palladium or platinum.
Related Roundups: Apple Watch, watchOS 5
Tags: KGI Securities, Ming-Chi Kuo
Buyer's Guide: Apple Watch (Neutral)
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37 months ago
Apple Watch:
on Siri: Hey Siri (wait 10 seconds) set the time.. Hey Siri.. Hey.. set the timer for 5 minutes.. (wait 15 seconds)..done
on Apps: Starting up weather app.. shows old info.. wait for.. oh damn, does not work.. open other app
On glances: **** waiting... waiting ***
Apple watch needs more CPU power and faster response for it to work..
I still wear it every day though, notifications seem to do fine which i do love
on Siri: Hey Siri (wait 10 seconds) set the time.. Hey Siri.. Hey.. set the timer for 5 minutes.. (wait 15 seconds)..done
on Apps: Starting up weather app.. shows old info.. wait for.. oh damn, does not work.. open other app
On glances: **** waiting... waiting ***
Apple watch needs more CPU power and faster response for it to work..
I still wear it every day though, notifications seem to do fine which i do love
37 months ago
Analyst Speculates On Numbers That Have Never Been Reported: Film at 11.
37 months ago
Apple Watch:
on Siri: Hey Siri (wait 10 seconds) set the time.. Hey Siri.. Hey.. set the timer for 5 minutes.. (wait 15 seconds)..done
on Apps: Starting up weather app.. shows old info.. wait for.. oh damn, does not work.. open other app
On glances: **** waiting... waiting ***
Apple watch needs more CPU power and faster response for it to work..
I still wear it every day though, notifications seem to do fine which i do love
But I fully agree the watch needs more CPU power and way faster response. And they should fix the 1% of the times when it didn't work. And its Siri should be capable of doing all the things the phone Siri can do.
37 months ago
There's no guarantee that the Apple Watch will ever become a smash hit, but remember- the iPad didn't really take off until the iPad 2 was released. If the Apple Watch 2 can do the same thing for the Apple Watch, it's going to have a bright future.
37 months ago
This isn't surprising. The watch still seems like a product that was made because analysts said they should make it and other companies were trying it rather than because Apple had real ideas or a market for it.
37 months ago
at 40% thinner (reported next version) - plus whatever advancements to watch OS they make - i'd imagine they can keep a decent amount of interest going for this. i'm not a 'thinner is always better' guy at all - but the watch needs it. chunk factor is about an 8 out of 10, imo. it vaguely looks like an original iPhone with a strap.
37 months ago
Good. Just kill the dam thing and give us better Mac Book Pros. :apple:
Yeah cos thats exactly how it works...
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