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 Roundups: Apple Watch, watchOS 6, watchOS 7
Buyer's Guide: Apple Watch (Caution)

Top Rated Comments

(View all)
Avatar
51 months ago
Good. Get back to computers and phones and making them better than anybody.
Score: 61 Votes (Like | Disagree)
Avatar
51 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)
Avatar
51 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)
Avatar
51 months ago
With Apple not giving any real numbers, you can predict whatever you like...
Score: 31 Votes (Like | Disagree)
Avatar
51 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)
Avatar
51 months ago
Macs Please!
Score: 23 Votes (Like | Disagree)

Top Stories

iPhone Maker Foxconn Says China's 'Days as the World's Factory Are Done'

Wednesday August 12, 2020 7:55 am PDT by
China will no longer be the world's manufacturing epicenter going forward, according to Apple's largest supply chain partner Foxconn, which has been gradually expanding its operations in other countries amid the U.S.-China trade war. "No matter if it's India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each," said Foxconn chairman Young Liu, according to Bloombe...

Leaker Jon Prosser: Apple Watch and iPad Launching in September, iPhone 12 Event to Take Place in October

Wednesday August 12, 2020 4:31 pm PDT by
Apple last month confirmed that this year's iPhone 12 models will launch outside of their normal September timeframe and will be "available a few weeks later," which has led to speculation about when an event might be held. Leaker Jon Prosser, who sometimes shares accurate knowledge of Apple's plans, today said that Apple will hold its iPhone 12 event during the week of October 12, with...

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Apple to Launch Bundled Subscription Services Called 'Apple One'

Thursday August 13, 2020 3:41 am PDT by
Apple will launch a new range of subscription service bundles called "Apple One" as soon as October, according to a new report by Bloomberg's Mark Gurman. The series of bundles would allow customers to subscribe to several Apple digital services together. This is expected to result in a lower monthly price than when the services are subscribed to individually. Bloomberg reports that the...

Apple Releases iOS and iPadOS 13.6.1 With Fix for Storage Issue and Green Tinted Displays

Wednesday August 12, 2020 1:31 pm PDT by
Apple today released iOS and iPadOS 13.6.1, minor updates that come a month after the release of the iOS 13.6 update with Car Keys and Audio Apple News+ stories. The iOS and ‌iPadOS‌ 13.6.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings > General > Software Update. iOS 13.6.1 addresses an issue that could cause...

Apple May Release 4G-Only iPhone 12 in Early 2021

Tuesday August 11, 2020 5:28 am PDT by
In a research note shared by Business Insider, Wedbush Securities analysts said that Apple may release a cheaper iPhone 12 in early 2021 with no 5G connectivity. Wedbush initially believed Apple would launch a mix of 4G and 5G iPhone 12 models this fall. Following re-examination of Asian supply chains, analysts Daniel Ives, Strecker Backe, and Ahmad Khalil revised the predictions,...

Apple Removes Fortnite From App Store [Update: Epic Files Lawsuit Against Apple]

Thursday August 13, 2020 11:58 am PDT by
Just hours after Epic Games introduced a new direct payment option for Fortnite that skirts Apple's in-app purchase rules, Apple has pulled the Fortnite app from the App Store. Fortnite is no longer available for download on the iPhone or the iPad, and Apple provided a statement to MacRumors on Fortnite's removal:Today, Epic Games took the unfortunate step of violating the App Store...

iPad Pro Keyboard Comparison: Logitech's $160 Folio Touch vs. Apple's $300 Magic Keyboard

Tuesday August 11, 2020 2:11 pm PDT by
Logitech recently debuted the Folio Touch, a keyboard and trackpad case designed for the 11-inch iPad Pro that serves as an alternative to the Magic Keyboard. In our latest YouTube video, we compare the $160 Folio Touch to Apple's $300 Magic Keyboard to see which is better. Subscribe to the MacRumors YouTube channel for more videos. Logitech is selling the Folio Touch for $160, while Apple's...

Apple Releases macOS Catalina 10.15.6 Supplemental Update With Virtualization Bug Fix

Wednesday August 12, 2020 1:20 pm PDT by
Apple today released a supplemental update for macOS Catalina 10.15.6, with the update coming a month after the original launch of macOS Catalina 10.15.6. The ‌‌macOS Catalina‌‌ 10.15.6 Supplemental Update can be downloaded from the Mac App Store using the Update feature in the System Preferences app. According to Apple's release notes, the update fixes a problem that could cause...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...