New research underlines dwindling consumer interest in Apple Watch

New research underlines dwindling consumer interest in Apple Watch
The Apple Watch hit the ground running when pre-orders began on April 10th, but the findings of one research company suggest that consumer interest in the device has since steadily waned. Sampling from the e-receipts of around 14,000 U.S. online shoppers using its services, Slice Intelligence believes that more than half (just under 1.5 million) of the estimated 2.5 million Apple Watch orders to date were made on April 10th.

Since then, Apple has shifted an underwhelming average of 30,000 units per day, with Slice's research also showing that as of May 15th, Apple is struggling to move more than 20,000 per day.

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As you will see below, there was a noticeable spike in estimated orders on April 24th, which is when the Apple Watch was made available to the masses. However, since then, things have clearly slowed down, and while it's only natural for any new product to see a decline in sales eventually, the fact that the wearable has dropped off so steeply after scarcely one month in existence may be cause for alarm in Cupertino. 

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Indeed, KGI Securities' Ming-Chi Kuo, renowned for being well-informed when it comes to Apple-related information, recently slashed Apple Watch sales estimates in half, suggesting that the device is lagging quite considerably behind what was originally forecast. Where KGI had previously informed clients that Apple would shift between 20-30 million Apple Watch units annually, he cut that figure down to less than 15 million this week, indicating that the early buzz surrounding the wrist computer is dying out fast. 

Slice Intelligence's report and the utterances of Kuo are in contrast to the sentiments of Apple CEO Tim Cook, who said on a recent trip to China that "the Watch could not be going better." But even though the device mightn't be selling as well as it should, Apple can still take solace in the fact that it's outpacing the early sales of the first iPod, iPhone, and iPad, while also trouncing sales of smartwatches running on Google's Android Wear. 

source: Slice Intelligence via Quartz, MacRumors

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74 Comments

1. bucky

Posts: 3784; Member since: Sep 30, 2009

the hype of this watch was never going to continue...Most people still dont even see the purpose of these yet (myself included)

5. Doakie

Posts: 2478; Member since: May 06, 2009

I enjoy my Pebble and my Android Wear watches. They do what they were designed to do satisfactorily. They provide notifications to which I decide if I want to pull out my phone to address or dismiss from the watch because it's unimportant. There are handy things that can be done with them, but they aren't right for everyone. As a Letter Carrier my hands are busy all day so a quick glance at my wrist is much easier than pulling out my phone every 10 minutes... But if you're a sit at a desk type of person I would see little to no reason for you to own one.

39. techperson211

Posts: 1280; Member since: Feb 27, 2014

Smart watch demand are not there yet. People who bought it outright are apple fans. Then again once they've experience it they tell it to their friends, relatives etc that's it's not worth the money. Charging your consumer with an iphone 4 hardware is bad enough let alone no true functionality and can't even compete with Android wear.

40. techperson211

Posts: 1280; Member since: Feb 27, 2014

Again apple fans will just ignore it and say it's revolutionary.

64. sgodsell

Posts: 7367; Member since: Mar 16, 2013

Wait if Apple is struggling to try and keep up to 20000 watch orders a day. Then that means there is a total of 8 months after April for a total of 245 days. Now we know people are still waiting for some orders to arrive in June. That is what Apple said. So we will give Apple there 2.5 million in April. Now 245 days at 20000 a day adds up to 4.9 million for 2015. So 4.9 + 2.5 = 7.4 million Apple watches sold for 2015. Even if you doubled the sales for the end of the year for the holiday season. So 61 days for November and December works out to an additional 1.22 million watches. So for a generous total of 8.62 million watches. So that is still well below the estimates.

25. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Well some have a good purpose if they have useful features. The Apple Watch is only as good as a FitBit. The Moto 360 is just as good as a Fitbit too. The Gear S at least has useful features and it doesn't require a phone. At least it has 3G, WIFI, BT,UV and more.

54. KillgoreTroutTime

Posts: 433; Member since: Jan 06, 2014

Gear S most certainly does require a phone and not just any kind of phone

63. Ordinary

Posts: 2454; Member since: Apr 23, 2015

66. j2001m

Posts: 3061; Member since: Apr 28, 2014

Only when you 1st get it after that it can be used on its own at all times and calls retired to it, so you full of crap, also it only needs the phone the 1st time to install apps and so on to it and to setup as needed and to link it to your phone for call redirects Also Samsung had a watch that did this in 1999, so Apple watch is a load of outdated junk

58. AlikMalix unregistered

SO BASICALLY: An ANAL-yst desides he's going to hype his own article by throwing big numbers around to get attention "20-30mil", than retracts to sound more realistic "15mil" to save face and Apple is DOOMED! right? Lets not confuse what ANAL-ysts forcast, versus what Apple expects... In reality Apple thought to sell 5mil (even slowed production down before launch), and ended up with 10mil+ forcast (realistically speaking), and as far as competition struggling to reach at least a million for the past couple of years, Apple walks over that in preorders... ...Yeah. All that tells me is people waited to see what Apple would do, and they liked what they saw (apart from a couple haters and some Android fans).

67. j2001m

Posts: 3061; Member since: Apr 28, 2014

That just because they have customer who buy anything, after Samsung gear s offers 4 days battery and works on its own as a phome, what all the testers in the videos that was showed the other week said the Apple watch needed, all reviews for the Apple watch that can not even have apps installed on it needed to be like 1 out of 10 as it as not use at all

68. j2001m

Posts: 3061; Member since: Apr 28, 2014

Tha Apple watch is the same as the 1st gear, but as less battery life and is harder to use but looks better and that tech is from 2013, it's just no good for a 2015 smart watch

2. Sauce5 unregistered

What do you expect? Apple already sold more watches than all of Android Wear combined. (month to year, whatever stat was just released the other day). The interest for wearables isn't that big right now. Durrrrr

4. Scott93274

Posts: 6033; Member since: Aug 06, 2013

I agree, but you can't help but laugh at the many annalists that predicted 30 million + Apple Watches sold in first year.

7. Sauce5 unregistered

No doubt, but, the year hasn't ended yet, and we have no where near close to any complete sales stats. I guess we will have to wait for an earnings call.

15. xondk

Posts: 1904; Member since: Mar 25, 2014

The problem is that smart watches, apart from the pebble watches, just are excessive in terms of what they 'can' do. There is as far as I see, very little need for a smart watch that can do more then the pebble can, because we already have our phones, and it is much easier to simply pull out phone and work on that bigger screen then fiddle with a smart watch. And I think people are realizing this on all fronts regardless of brand, smart phones replaced normal watches and such for a reason, a lot of functionality in a nice size. Smart watches need to focus on delivering function that make sense and a battery life that is long. Notifications, caller id, sms preview, that sort of thing, pulling out your smart phone makes a lot more sense then fiddling with more advanced stuff on your smart watch, whatever brand.

17. Sauce5 unregistered

While you have some good points, your major stance is flawed. A smartwatch isn't meant to be 'fiddled' with. It is (at least in Apples perspective) meant to be a secondary object used for quick glances, specifically for notifications, health and fitness, travel, and more. It isn't meant to be pinch-to-zoom constantly (although you have the Digital Crown so sausage fingers like mine don't cover the screen).

22. tedkord

Posts: 17356; Member since: Jun 17, 2009

Yngwie?

29. Sauce5 unregistered

56. kozza3

Posts: 778; Member since: Oct 17, 2012

dude...

76. xondk

Posts: 1904; Member since: Mar 25, 2014

I think you misunderstood me slightly, because that is my point, quick glance and such, it is a notification thing. But it isn't just notification abilities that apple is selling the watch on, because lets face it a large majority isn't buying it for the health/fitness stuff, and smart watches now a days are trying to push a ton of feature when all you need is simple notification.

27. chronomaestro

Posts: 4; Member since: May 22, 2015

First of all, Pebble cannot even compete with Apple watch even aesthetically, let alone functionality. Second, define what you mean by "Smart watches need to focus on delivering funcion that make sense". Why are they called smart watches? Because they can forward notification and information from your phone to your watch, becase they can help you keep track of your activities. What else do you need? Third, what Apple provides is just the beginning. This is the computer platform for more to come. Look at iPhone when it was first released and now. Do you see my point? I agree that battery life needs to be longer but so far, all the reviews that I have read, none reported battery power is really an issue at all. When you sleep, just take off your watch and charge. So simple. In the end, if the Apple watch is not enough to stop you from pulling out your phone to check then so be it. You will never find the need for an Apple watch. Heck, you probably don't even wear a wristwatch anymore. But there are so many out there, myself included, who are just so mesmerized by Apple watch. And the number is very very significant.

36. Canaan

Posts: 351; Member since: May 25, 2014

For what they can do at the moment I think they're too expensive, why pay $349 for a phone accessory (I'm including the LG Urbane here as well). Perhaps if they came with a far more intelligent assistant they'd be worth the price. However, I do think people are interested in the watches but the price is keeping them from becoming mainstream. The interest can be seen when AT&T and Verizon drop the prices of their smart watches to $50-$99 and they sell out in a few hours (LG G watch, a week or two ago).

38. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Well you can't call.it smart if it's only showing you what is being forwarded by your phone. To me that is dumb. Smart would be, being able to.do it on it's own. Apple had 2 years to see what others had and even if it took another year, they could have made something better. SAMSUNG managed to knick out the Gear S within one year of the original Gear which was heavily criticised for it's total dependable on a phone. Yet I have to see one say the same thing about Apples offer. After 2 years the best they could do was make the same thing we had 2 years ago? Yet they have over $200B in the bank. This is why Samsung is better than them. Apple is only looking to make easy profits and not give anything, just like the video game industry did and it almost died. It is a piece of jewelry that just so happens to have some limited digital capabilities. It's not even worth $100 at best. After all what can it done it hour your phone? NOTHING. At least the FibBit is standalone.

69. j2001m

Posts: 3061; Member since: Apr 28, 2014

Sorry but if you all had the Nokia n95 in the USA at the time of the 1st iPhone, they will not have sold at all, as that phone crapped all over the iPhone, it even had 5mp cam on it at the time.

77. xondk

Posts: 1904; Member since: Mar 25, 2014

I would have to ask why you haven't been mesmerized by the many other smart watches that are about, and seem to be praising apple so much. I know a lot of people that have bought different brands of smart watches, and after the initial wow wears off they are like "Why do I have this" and the usual answer is "Because I can't return it, and am stuck with it." so yeah....smart watches regardless of brand make no sense to me, but for those it does, fine cool :)

3. leeTronix

Posts: 33; Member since: Apr 09, 2015

It was obvious this would happen to apple and so it should.

6. rick_mobile

Posts: 358; Member since: Dec 13, 2010

Piece of junk. I wouldn't pay 200 for this piece of crap. I almost bought a mint condition Samsung gear for 140 but I thought that was too expensive. The gear s and the LG watch r are better than the apple watch and cheaper, and I still wouldn't buy them; much less that piece of garbage apple watch.

8. Sauce5 unregistered

9. Scott93274

Posts: 6033; Member since: Aug 06, 2013

Interesting... I would have recommended Preparation H.

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