Well-connected analyst cuts Apple Watch 2016 shipping estimates by 15 to 25%
Interestingly, Kuo has raised his shipping estimates for the Apple Watch Series 2 by 10 percent. However, the analyst doesn't believe that this will make up for the slowdown in sales of the Apple Watch Series 1.
Last year, Apple is estimated to have shipped 10.4 million Apple Watch units in just eight months of commercial availability. If Kuo's new estimates turn out to be accurate, then Apple will sell about 19% fewer smartwatches this year despite having three additional months of runway.
According to Kuo, this decline in Apple Watch sales is due to several factors. Among them, Kuo mentions the lack of hit apps, poor battery life, as well as a heavy reliance on the iPhone. Here's a comment from Kuo's recent note to investors, captured and reposted by Apple Insider:
Fitbit remains the leading wearable device manufacturer, with shipments continuously on the rise despite the introduction of the Apple Watch. Kuo's downward revisal of estimated Apple Watch shipments for 2016 is yet another indication that the average customer has yet to be sold on the smartwatch concept. While the Apple Watch (like all Android Wear competitors) aim to accomplish a number of tasks, Fitbit's dedicated fitness trackers are far more efficient in achieving their goals, as simple as these might be. Kuo mentions: