Apple Watch Sales Picking Up

Posted by Kirhat | Wednesday, October 21, 2015 | | 0 comments »

Apple Watch Sales
When the Apple Watch was launched, it was unlike recent new Apple product launches. There were no lines outside Apple Stores, carrier stores weren't selling Apple Watch models, and there was much mystery as to how to sell such a personal device with so many different options.

With no apparent big-time interest, some even wondered if Apple would be able to find a way to sell Apple Watch in the same setting that it used to sell desktops, laptops, tablets, and smartphones. With the launch now in the rear-view mirror, we have a much clearer picture of the issues Apple faced leading up to the first Apple Watch sale.

While all new Apple products suffer from supply issues at launch, Apple Watch supply was much more limited than most realized. Some blamed Angela Ahrendts for a "botched" Apple Watch retail launch while others even looked at Jeff Williams as holding some responsibility for confusion surrounding Apple Watch availability.

The WSJ went on to report that faulty taptic engines in some Apple Watches led to Apple not being able to sell a certain percentage of assembled units, leaving the company with not enough stock to have the device available for in-store purchase. What had been billed as the largest Apple product launch in years seemed to miss the mark.

However, when Apple reported earnings at the end of July, a different picture began to appear. Even though Apple Watch revenue and unit sales were not disclosed, one is able to back into a fair estimate of such metrics using an accurate financial earnings model. Apple likely shipped 2.6 million Apple Watches from launch to the end of June. Taking into account that many of these shipments were ordered at or close to launch, we are then able to paint a picture as to what kind of launch the Apple Watch really had.

Apple likely sold around two million Apple Watches at or close to launch. On an absolute basis, this would classify as the biggest product launch in Apple's history despite there being no long lines. In the preceding weeks after launch, Apple Watch supply then improved rather dramatically. Apple just had completed its quietest record-breaking product launch in its history.

When comparing the first quarter of Apple Watch unit sales to previous flagship products, the Apple Watch and iPad are closely ranked. The iPad had a few extra weeks of sales in its first quarter on the market, which distorts the numbers a bit. Regardless of timing, Apple sold more Apple Watches than either iPhones and iPods during the first three months on the market.


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