Tags: Apple | Watch | sales | plunge

Report: Apple Watch Sales Plunge 90 Percent From Opening Week

By    |   Tuesday, 07 July 2015 04:31 PM

Maybe Apple shouldn't bank on its Watch as the new thing to sustain the gargantuan company's growth.

The much-ballyhooed chronograph registered impressive sales of about 1.5 million, or more than 200,000 a day, in the week after its April 10 introduction, according to a Slice Intelligence report obtained by MarketWatch.

But sales have plunged to less than 20,000 a day since then, and less than 10,000 on some days.

And that's not the end of the woes for Apple Watch. Two-thirds of those sold have been the "Sport" version, which sells for $349 and up, rather than the costlier editions that start at $549.

Apple itself hasn't revealed any sales numbers for the watches yet and didn't offer MarketWatch immediate comment.

MarketWatch columnist Brett Arends says the numbers are a mixed bag. "The watch is only a tiny part of Apple’s business," he notes. But it's also the first new product launched since the 2011 death of founder Steve Jobs.

Apple shares closed at $125.67 Tuesday. Morningstar analyst Brian Colello puts fair value at $140.

He offers a bullish view of the company, but with caveats.

"We believe Apple's strength lies in its experience and expertise in integrating hardware, software, services, and third-party applications into differentiated devices that allow Apple to capture a premium on hardware sales," he writes on Morningstar.com.

"Although Apple has a sterling brand, strong product pipeline, and ample opportunity to gain share in its various end markets, short product life cycles and intense competition will prevent the firm from resting on its laurels, or carving out a wide economic moat, in our opinion."

Products like Apple Watch may make it more costly for customers to switch from Apple, Colello says. But Google's Photos service may quickly cut switching costs from Apple's iCloud service, demonstrating the risks for Apple, Colello says.

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Maybe Apple shouldn't bank on its Watch as the new thing to sustain the gargantuan company's growth. The much-ballyhooed chronograph registered impressive sales of about 1.5 million, or more than 200,000 a day, in the week after its April 10 introduction.
Apple, Watch, sales, plunge
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2015-31-07
Tuesday, 07 July 2015 04:31 PM
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