A recent IDC report claims that the sales for the third quarter of 2016 for the Apple Watch are not that great. In fact, they are pretty bad. In response, Apple CEO Tim Cook said on Monday that their device could actually set a record in sales this holiday season. The first week of holiday shopping reportedly proves this. However, Cook denied to offer any details of this, which may help fuel the exact opposite of what he wants. That the sales are not going well and that he is just saying this to slam the independent market research firms.
Apple Watch not expected to do well
According to this report from IDC, the not-as-good-as-expected-sales for the Apple Watch may be due to the device’s aging and unintuitive interface. The sales are reportedly down more than 70% year-over-year. Many analysts believe that the company will not have very much success with this device. One of the main reasons for this is that there are many manufacturers who have begun making fitness bands which are not that advanced, but are much cheaper.
Tom Cook declined to offer any more details or figures. He only said that the Apple Watch sold extremely well, actually that it reached a new high during this first week of holiday shopping. He said that
“Our data shows that Apple Watch is doing great and looks to be one of the most popular holiday gifts this year.”
Cook added that the sales for the Apple Watch during this week were higher than those in any other week, for the same product. This might also be boosted by the new Apple Watch Series 2. What it is interesting is that Apple chooses not to disclose exact figures for the performance of the Watch. However, they are doing this for their other products like the iPad or the iPhone or even the Mac. So, analysts have an almost impossible mission in trying to decipher exact numbers from so little. Could this mean anything or are we reading too much into this?
Apple Watch Series 2
Apple just introduced their new Watch Series 2. It has GPS, a brighter display and faster performance. It is also waterproof. A modernized version of the Apple Watch Series 1 is now also available at a more accessible price.
If what Tim Cook has said is indeed true (that the sales are going extremely well, contrary of what the IDC report says), this might be a point of interest for investors. Most of them want Apple to continue its wide-growth. A reason for this might be that smartphone sales have begun slowing down. Also, people’s interest for tablets has increasingly declined. How times have changed!
Still, the holiday season should still belong to Apple. Their products are the most wanted as Christmas gifts. From the iPhone (which is the most popular present) to MacBook. The high demand for iPhone 7 could put Apple back on track as they are expecting to come back to revenue growth this winter season.
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