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Smartwatch sales driven by the success of Apple Watch

Though low sales of Apple Watch were reported in Q3, Juniper Research has reported that about 2 million units of the device have been sold so far. Despite the share price dip and speculations about the “flopping” of the smartwatch, retailers believe that it is going to a big seller for Christmas.apple-watch-variants

The iPhone and iPad which have been sold in millions had fears of being “saturated”, but they continue to drive sales with its popularity. CFO at Apple Luca Maestri stated that the contribution of Apple Watch accounted for well over 100 percent growth of the category. Maestri added that this was due to the fall in sales of iPod and other accessories. While smartwatch makers like Pebble, Song, Samsung and others were gaining ground by selling around a million smartwatches, Apple Inc leads itself in smartwatch sales.

For instance, in the third fiscal quarter of 2015, Apple generated $10 billion in profit and $49 billion in revenue. Apple Watch was assigned to the other category in the results. In Q3 2014, the other section made over $1.6 billion, rising to $2.6 billion, which is likely due to the sales of the Apple Watch. It was also stated that iPods sales went down, and the minimum of $465 per device can definitely raise the revenue. From the average selling price of Apple Watch and year over year revenue, about 1.5 million to 2.5 million units are expected to be sold.

Jonathan Marsh, head of John Lewis’ technology acquisition division, said that wearables in general and the Apple Watch would be the “must have” gadget this year. Analyst Cantor Fitzgerald also described it as the “go-to-gadget” during the Christmas season. Device analyst of Juniper said that the device marks the most successful smartwatch to date. This indicates that about seven million Apple Watch devices are expected to be sold by the end of 2015, after the boost in sales during the Christmas period.

About Anirudh Madhav

A movie buff, a bookworm, and a compulsive doodler. All posts by Anirudh

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