How Successful is the Apple Watch?
Apple’s latest effort in boosting its smartwatch sales has resulted in unveiling of the Apple Watch Series 2. Unlike the last year, when the original Apple Watch was introduced, the Cupertino-based company decided to go with a different marketing approach.
The original device was marketed as the ultimate smartwatch with smartphone-grade productivity tools. Even though it seems like this was enough to persuade some people into buying, this wasn’t enough to persuade most of those who waited for something better.
This is one of the reasons why the Series 2 Watch is being marketed as a fitness device that can help with your workouts and motivate you towards your fitness goals. This kind of decision led us to believe that Apple isn’t satisfied with how the Watch is selling, so we decided to dig up some information and see if this is true.
Even though it is certain that Apple has nothing to be afraid of when it comes to making profits, and even though it can even afford a couple of misses, the company is not ready to give up on the Watch. During the recent September Media Event, it has been said that Apple is currently behind Rolex when it comes to sales with companies like Fossil, Cartier, and Seiko already behind.
Still, it is easy to see that this kind of comparison isn’t grounded, which can be seen by taking a look at the sales numbers.
According to IDC, Apple saw its Watch sales fall 55% in the second quarter which made the company’s share value go down by 0.5%. However, companies like Lenovo and Samsung saw sales increase by 50% in the same quarter, which means that Apple is losing this battle.
In addition, one of JPMorgan’s analysts said that “we’ve seen demand weakness on that watch below what we had anticipated… People still haven’t figured out what they want to use them for”. This could explain why the company changed its course and focused on fitness-oriented features instead on productivity.
If we take another glance at Apple’s September presentation, we can also learn more about the company’s revenue when it comes to the Watch. According to Apple, Rolex takes the first place. This company reportedly generated $4.5 billion in revenue last year.
Fossil takes the third place with its $2.5 billion worth watches, which is actually showing a 75% growth year-over-year. This means that Apple Watch is somewhere in between, with its average sales price of around $500.
What this means is that Apple has sold between 5 million to 9 million models since the original device was launched.
The bottom line is that Apple is still very secretive as it fails to report any kind of information regarding Watch’s sales performance. Either way, it seems like Apple is doing well even if the Watch’s sales have taken a turn for the worse. With the Series 2 Watch being available, it will be interesting to keep track of this information and see how successful the company’s latest effort will turn out to be.