Research by KGI Securities shows that Apple is likely to sell less smart watches in 2016 than in 2015. The new versions of the company’s smartwatch will not be so popular, because of the lack of killer applications.
Less smart watches sold by Apple in 2016
Apple is likely to sell less smart watches in 2016 than in 2015, KGI Securities reports after a research. The new smart watches, the Series 1 and Series 2 will sell less well than their predecessors because there is a lack of killer applications. The short battery life and the dependency on the iPhone make sure that people are not so keen to the new models. To date, the smart watches didn’t manage to hurt Fitbit sale, and since the Series 1 won’t change that either.
Therefore, the company expects only 8.5 to nine million units will be sold in the fiscal year 2016.
Based on these considerations, we revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015). We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months).
The tech giant itself has not yet announced how many smartwatches have been sold, making it hard to tell how popular smartwatches are actually. The new models also look remarkably like the older versions but do offer new features. The Series 2 is waterproof and the Series 1 (an improved version of the first Watch) has a better processor.