Lagging Apple Watch demand leads KGI to slash shipping estimates in half

Lagging Apple Watch demand leads KGI to slash shipping estimates in half
KGI Securities, home to Apple-connected analyst Ming-Chi Kuo, says that the Apple Watch has not been in as much demand as it originally thought it would be. This has led the securities house to slash its estimate of Apple Watch shipments for the year by as much as 50%. Previously, KGI told clients to expect Apple to ship between 20 million and 30 million smartwatches for the year. Now, KGI is telling clients to expect Apple to ship less than 15 million units of the Apple Watch for 2015.

The research note sent out by KGI also said that Apple's supply of the Taptic Engine used on its watch should start picking up later this month. The part is used to create a tapping feeling on the wrist of an Apple Watch user as a reminder or an alert. A vibration motor is used to move a small rod back and forth to create the tapping sensation. The Taptic Engine is also used to send the user's "heartbeat" to others wearing the timepiece. Problems with the vibration motor caused a bottleneck in the supply chain which led to a production shortfall for the Apple Watch.

But KGI notes that shipping dates for the Apple Watch have dropped back to June, and since this can't be pinned yet on increased production of the Taptic Engine (remember, that won't take place for another week or so), the obvious conclusion is that demand for the Apple Watch has been sliding. Thus, the firm has cut its shipping estimate for the product.

The securities firm has also discovered that 80% of the Apple Watch orders have been for the larger 42mm model. In the note it disseminated to its clients, KGI says that it assumes that men are ordering the larger variant of the intelligent watch while women are purchasing the 38mm model. While it is a generalization, the numbers can be used to determine that you are much more likely to find the device on the wrist of a man than on the wrist of a woman.

source: 9to5Mac via GSMArena

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85 Comments

1. waddup121 unregistered

Slash dat watch off.

45. sgodsell

Posts: 7383; Member since: Mar 16, 2013

15 million? Lets just see if they can get to 10 million first.

51. AnTuTu

Posts: 1613; Member since: Oct 14, 2012

This was expected. Let's wait for Samsung's Orbit which will be a real smartwatch.

60. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I am curious as to why anyone is surprised? About a month ago it was shown here on PA that 70% of the US consumers wasn't interested in the Apple Watch at all. How many people is that? 350M people live in the USA, about 200M have a cellphone. Since this device REQUIRES a iPhone to work PERIOD, then there is already a huge issue. So far I have seen only one in the wild and I wasn't impressed at all. This guy I aw had the bright green band. To me, it simply looked just as toyish as the original gear which yes I did buy with the orange strap. They had 2 years to make better and yet Samsung made a better gear only 1 year afte the original. The Gear S doesn't have any competition. Unlike other offerings, you don't need a phone at all and 100% of the functions on it can work without a phone. The only downside is, if you want to use it fully as a phone you have to drop a SIM in it. What I did at first is, when I went riding, I pulled the SIM out my phone and shoved it into the watch. Then I went ahead and activated it with its own number because it was just better and the cost is only $5.00 a month. For 4349, the Apple Watch should have had all the features it has now, plus 3G or 4G, Wifi, BT and UV at the least. Then maybe it would be worth it. But to have less features than the Gear S and cost more is absurd. All the losers who bought it, should be ashamed. I personally am ashamed I ever bought the original gear. It wasn't worth even $50 and I paid 299. But at least the Gear S was a reprieve for me and Sammy.

84. ecmedic4

Posts: 520; Member since: May 02, 2013

You are a seriously immature close minded fanboy. Just because someone buys something that you don't, does not make them a loser. IMO if someone buys something and they are happy with the purchase, it does what they need it to do then it was worth the purchase. Just because your an Apple hating fanboy, doesn't mean other ppl shouldn't buy something just because you don't like it. This site seems to be filled with Apple hating fanboys though. No one is forcing you to buy any Apple product, so don't concern yourself with other ppl's purchases. You really need to grow up.

2. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

The watch simply sucks that's why! it offers nothing new!

28. steodoreben

Posts: 379; Member since: Sep 26, 2013

I agree. Excuses. Excuses. Taptic engine shortage, eh?

3. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Whoops! Guess everything they make doesn't turn to gold afterall.

36. meanestgenius

Posts: 22108; Member since: May 28, 2014

Don't let a certain someone with an Imp for an avatar hear" you say that. He's been going around talking about how "his body is ready" since the Apple watch was first mentioned, lol.

4. fzacek

Posts: 2486; Member since: Jan 26, 2014

Lol! This was expected...

31. steodoreben

Posts: 379; Member since: Sep 26, 2013

Taptic engine is just a gimmick. Haptic feedback exists on Android devices and gaming consoles long ago. It doesn't excite me at all.

41. Busyboy

Posts: 731; Member since: Jan 07, 2015

No Android device has the same haptics as the Apple Watch.

55. tedkord

Posts: 17365; Member since: Jun 17, 2009

That's like saying that no other phone has the same ringtone as mine. The engine pulses in a different pattern, so what?

59. Busyboy

Posts: 731; Member since: Jan 07, 2015

You can't compare feedback like vibration and noise to force touch. Don't be an ignorant fandroid, it's a really nice innovation. Not a gimmick

61. tedkord

Posts: 17365; Member since: Jun 17, 2009

Yes, you can. It's just a variation of the same thing. I never said it was a gimmick. It's a copy. But the sending a heartbeat thing is a campy gimmick.

79. sgodsell

Posts: 7383; Member since: Mar 16, 2013

Taptic feedback. Innovation or gimmick? It just doesn't matter, because its still not worth what Apple is charging. Don't be an ignorant blind sheep.

5. RebelwithoutaClue unregistered

Lol all these comments like the watch failed and still the prognoses is 15 million sold in 2015. I don't think the watch is anything special (compared to the competition) but they do sell a lot better.

7. BobbyDigital

Posts: 2125; Member since: May 29, 2014

*Prognosis is one thing. Actual sales are another. And we all know that Apple can sell a brick with its logo on it and the hoards of sheep would flock to it, proclaiming it to be the greatest thing ever created… Oh wait, they did that already with the iPhone.

8. RebelwithoutaClue unregistered

Well so far they did very well. And yes a lot of Apple users are loyal and might buy anything Apple puts on the market. But I know for sure an Apple brick wouldn't sell. And while I don't think iDevices are all that, I don't think they are bad either.

10. BobbyDigital

Posts: 2125; Member since: May 29, 2014

But Apple bricks are already selling. The iPhone and iPad are proof of this already.

11. BobbyBuster

Posts: 854; Member since: Jan 13, 2015

Are you the only idiot in your family?

12. drunkenjay

Posts: 1678; Member since: Feb 11, 2013

look whos talking.

32. meanestgenius

Posts: 22108; Member since: May 28, 2014

Clearly you're the only !Diot in yours.

86. BobbyDigital

Posts: 2125; Member since: May 29, 2014

No. That would be your Mother.

91. 99nights

Posts: 1152; Member since: Mar 10, 2015

Bobbybuster must be the troll account made to troll you man, haha I'd take that as a compliment.

100. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Lmao!! I was thinking the same thing. I've officially got my own groupie! I'm internet famous now! Lmao!!

98. BobbyBuster

Posts: 854; Member since: Jan 13, 2015

Does your mom know who's your dad? I can guarantee you that it's not me since I never paid for this kind of accommodation.

101. BobbyDigital

Posts: 2125; Member since: May 29, 2014

Look! Its my groupie!! I can guarantee that your Mom knows me, you groupie girl. Repeatedly I might add. Now buzz off groupie. You love me so much that you had to make an account just to troll me. Lmao!!

102. Scott93274

Posts: 6038; Member since: Aug 06, 2013

Shut up man! Little Bobby is obviously a little obsessive and unbalanced. If you just brush them to the side like that they'll snap and the next thing you know you're sharing obsessive fan stories with John Lennon and Selena.

37. meanestgenius

Posts: 22108; Member since: May 28, 2014

Lmao! +1. There's definite truth in your statement.

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