Apple to Sell Fewer Apple Watch Models in 2016 Despite Launch of Series 2

Apple may sell fewer Apple Watch models in 2016 than it did in 2015, according to research conducted by KGI Securities analyst Ming-Chi Kuo and shared by Business Insider. According to Kuo, the new Series 1 and Series 2 Apple Watch models suffer from a lack of "killer" applications, inadequate battery life, a heavy reliance on the iPhone and a multi-touch UI that he does not feel will be the ideal solution for wearable devices.

The Apple Watch, says Kuo, has failed to impact sales of the Fitbit, and he does not believe the more affordable Series 1 models will lead to a higher number of sales.

apple watch series 2 2
As a result of these perceived shortcomings, Kuo has cut his estimates for 2016 Apple Watch shipments by 15 to 25 percent, projecting sales of 8.5 to 9 million units during fiscal 2016. Kuo made similar predictions in April of 2016.

"Based on these considerations, we revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015)," writes Kuo. "We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months)."

Apple does not break down Apple Watch sales numbers and has never revealed how many of the wearable devices have sold since April of 2015, making it difficult to pin down just how well it's doing with customers. IDC estimates shared over the summer suggest Apple sold 1.6 million units during Q2 2016, down from 3.6 million estimated units in the second quarter of 2015, aligning with Kuo's prediction.

It's important to note that estimates for Apple Watch sales sometimes vary wildly, however. For example, during the March quarter, Swiss bank UBS estimated sales of 1.6 million units, while Strategy Analytics estimated sales of 2.2 million.

The new Apple Watch Series 2 looks identical to the Series 1 Apple Watch models but includes better waterproofing to make it suitable for use when swimming, GPS, a faster dual-core processor, and a brighter display. Series 1 models also feature a faster processor, but are otherwise unchanged from the original Apple Watch.

More substantial changes are expected for the 2017 Apple Watch, including an exterior redesign.

Related Roundup: Apple Watch Series 7
Buyer's Guide: Apple Watch (Buy Now)
Related Forum: Apple Watch

Top Rated Comments

jscooper22 Avatar
69 months ago
Good. Get back to computers and phones and making them better than anybody.
Score: 61 Votes (Like | Disagree)
TurboPGT! Avatar
69 months ago
"Based on the fact that I don't like the product, it will probably sell less."

Can we stop posting this guy, please?
Score: 57 Votes (Like | Disagree)
Applefanben Avatar
69 months ago
I hate to say it but I have found myself totally underwhelmed by the Apple product lineup here lately. Macs are neglected, iPhones are simply minute upgrades, Apple Watch is well blah (can we get better design and battery life?), and the Apple TV is still way behind the Roku lineup. I own all of the above Apple products, just in case you wanted to know. Overall, I love the Apple ecosystem and how, most of the time, it works really well together. But, I see Apple falling behind the curve if something doesn't change. I'm afraid they are going to end up making the mistake Microsoft did years ago with wanting to stay the same in phones and no longer innovate or see the changing market and become irrelevant. Just like Microsoft and mobile. Venting over with, I'm just frustrated with the current Apple product lineup that is so underwhelming.

And yes this is my first post long time reader and comment reader.
Score: 32 Votes (Like | Disagree)
diddl14 Avatar
69 months ago
With Apple not giving any real numbers, you can predict whatever you like...
Score: 31 Votes (Like | Disagree)
robjulo Avatar
69 months ago
It is comical how angry some posters here get over an analyst's opinion when the opinion isn't heaping praise on Apple.

It is a consumer electronic device made from a company that doesn't give one iota about you. The anger is bizzare.
Score: 28 Votes (Like | Disagree)
Spink10 Avatar
69 months ago
Macs Please!
Score: 23 Votes (Like | Disagree)

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