Apple Watch Sales Tumble 55%

Tyler Durden's picture

Tim Cook's first major, standalone product is a flop. According to the latest IDC data, sales of the Apple Watch plunged by 55%, from 3.6 million a year ago to just 1.6 million in Q2.  

The sharp decline in sales of a product that many "expert analysts" had staked would result in a "wearables" revolution and a new golden era of growth for Apple, is highly unusual for a new Apple product so early in its life and will add to concerns about Apple's growth prospects this year. By reference, the iPhone posted nine years of uninterrupted growth from its launch in 2007 until the first quarter of this year, when unit sales fell by 16% to 51 million the FT writes.

Other companies did better: while Apple remained the top seller, Samsung closed the gap thanks to strong 51% year-over-year growth and a 9%  jump in market share to 16%.  Lenovo’s Motorola brand also saw a sales increase of 75% to 0.3 million. The Apple Watch's market share has tumbled from 72% at its launch to just 47% in the most recent quarter. 

As IDC said, "Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market. Every vendor faces similar challenges related to fashion and functionality, and though we expect improvements next year, growth in the remainder of 2016 will likely be muted."

After initially ramping up in the first three quarters since its launch, sales of the iWatch have sharply stagnated in the new year, with both Q1 and now Q2 posting disappointing sales numbers.

While the plunge in Apple watch sales is troubling, what is worse for "wearables" advocates is that consumers may have gotten moved on. The overall smartwatch market experienced its first-ever decline as shipments fell 32% in the second quarter, totaling an estimated 3.5 million units compared to an estimated 5.1 million units in the year-ago quarter.

Over the past year, Apple has refused to released any official sales figures for the Watch since it was launched in April of last year. While analysts have estimated that it sold 12m units in its first year the number is below many observers’ initial expectations for the first launch into a new hardware category since Tim Cook took over as Apple’s chief executive. The IDC data will only add to concerns that instead of a growth product which will spearhead the next level of growth for Apple, interest in the iWatch as it has been called, was nothing more than a passing fad.

Then again one probably did not need IDC to conclude this: in March, Apple cut the starting price of the Watch by $50 to $299 for the basic Sport model. Since then, retailers such as Best Buy and Target have offered promotions that have cut as much as $200 from other versions of the Watch, in an attempt to encourage buyers.

Apple declined to comment on IDC’s figures, ahead of its earnings report next week. The Watch, a revamped Apple TV and new Apple Music service have so far failed to offset the declines in iPhone and iPad sales, which Tuesday’s figures are expected to show have continued in recent months. We doubt Apple will breakout Apple watch sales data, either next week or ever.

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css1971's picture

What kind of fuckwit bought an iwatch?

 

Antifaschistische's picture

not me....I'm waiting for the I-Ring to come out!!   Soon to be followed by the I-ThumbNail for my wife.

jcaz's picture

No problem, I'm sure they have 12 new products coming out this month that will make that up, right Tim?

Uh, Tim? Anyone seen Tim?

Uh oh.....

SomethingSomethingDarkSide's picture

Waiting on the "Willow Grain" model to come out!  See Black Mirrors.

hedgeless_horseman's picture

iWatch?

No thanks.  

Get a good knife and learn how to use it.

"Why?  Well, first, it is an inexpensive and low-risk way to discover who the good tactical instructors are in your area.  Second, the learning curve for a knife is much shorter, and can also serve to shorten the learning curve for a handgun.  Third, a knife can be more effective than a pistol in many situations.  Fourth, there are many situations when, or where, you simply cannot carry a pistol, but you can carry a knife.  Finally, a knife is a good back-up to a malfunctioning pistol, or more likely a malfunctioning shooter."

 

http://www.zerohedge.com/news/2015-09-10/guide-learning-use-sidearm-defe...

JamesBond's picture

If any of us sold 5 million units of something, I don't think we would consider it a failure even if sales declined over time.  Not sure how, what, why is behind this article...

 

There is no news.  Only bias.  

MarsInScorpio's picture

James Bond:

 

You're nuts.

 

This is Apple - the not-too-long-ago Most Valuable Company in the World.

 

Now, it is in free-fall. The end of iCrap has arrived; iCrap was the ultimate mass-market bling.

 

Now, it is just another unnecessary expense killed by its lack of truely innovative thinking and features. The last iPhone was 2-years behind Samsung technologically. As for design, it was nearly indistinguishable from its last 2 predecessors.

 

However, its other Cause of Death is the collapse of the Global Middle Class. These aspiring fakers of real wealth are out of money for anything except food, housing, transportation, clothing - increasingly from thrift shops, and the kids. When the question is, "Mortgage payment or iCrap?", the mortgage always wins.

 

Apple's reign as the undisputed winner of the Overpriced Quickly Obsolete Award is over. Little Timmy, or anyone else, can't replace the inimitable genius of What's-His-Name, the tech version of the alcoholic, drug-influenced Edgar A. Poe. (He wrote, spoofing the nano-second fame of this era.)

 

Dump Apple, except keep one first-entry of every product line for Collector's Value.

 

The Apple has fallen from the tree, and landed in the dry, barren soil of failed sequels to it's historic first appearance.

JamesBond's picture

I never advocated buying the stock.  iWatch is the Chia Pet of electronics and Apple still sold millions of units.  Even within the context of a large multinational, that amount of sales helps keep the light bill paid and no CEO would complain about that.  

 

jb

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) JamesBond Jul 21, 2016 11:58 PM

But, but, but.. they've got Moxie(TM)!!!

Countrybunkererd's picture

That reminded me of the app someone showed me that they use to count how many times they smoked that day.

Why not count how many are in your ashtray, or why not count how many are in the pack?

 

zippedydoodah's picture

You've assumed that an i-diidlysquitforbrains user can count.

MalteseFalcon's picture

iWatch flopped?

No problem.

There is iHearing Aid.

Just pop it in your ear and listen to the internet.

You navigate the web by boxing your ear and using Morse code.

Not up for that?

How about the iAss Tickler?

It allows anyone with the app to access your asshole and send you an intimate vibrating message.

RafterManFMJ's picture

The iWatch 2 will be released in September; no fucking shit current sales on the soon to be obsolete model tanked.

Jesus Christ - can I get a job as an analyst somewhere?

Here2Go's picture
Here2Go (not verified) jcaz Jul 21, 2016 3:00 PM

Eat your P/E's... bitchez!

 

"What kind of fuckwit bought an iwatch?"

 

iFONESTAR bought one with bitcoin profits that he didn't pay taxes on.  He's the coolest basement nerd on his block, until Commodore 256 comes out (or, his mom dies).

Sam Spayed's picture

I want the Icontact lens.  Now that would be cool.  Controlled by hand gestures and thought waves.

Here2Go's picture
Here2Go (not verified) Sam Spayed Jul 21, 2016 3:39 PM

How about the iBUTT PLUG?

 

I'm sure that that's some technology that Obama could really get behind (or in front of).

Troy Ounce's picture

 

 

In Africa they say: "you have the clock, we have the time"

Apple, Schmapple

SloMoe's picture

OSAKA -- Orders to six leading Japanese makers of electronic components sank for a third straight quarter in the three months ended June, reflecting slumping sales of Apple's iPhone and a stronger yen.

http://asia.nikkei.com/Business/Trends/Orders-slide-further-at-Japan-s-e...

neidermeyer's picture

What kind of fuckwit bought an iwatch? "Swordmaker"

Sokhmate's picture

I prefer to call them nitfucks.

Abbie Normal's picture

"What kind of fuckwit bought an iwatch?"

Since it doesn't work without an iphone, the buyers had to come from the iTard pool.

CheapBastard's picture

It might get tougher for those American companies in China:

Angry Chinese crowds are protesting against KFC, Apple — here’s why

http://www.marketwatch.com/story/angry-chinese-crowds-are-protesting-aga...

CPL's picture

Bullish!  DOW 1000000!

N0TaREALmerican's picture
N0TaREALmerican (not verified) Jul 21, 2016 2:28 PM

Well, there's only so many tech-geeks running around.  

Haven't heard much about GoogleGlass lately either.

Kirk2NCC1701's picture

What watch?

10 watch.

Such much?

(Trivia buffs: where does this quote come from?)

NoDebt's picture

Oh, that's 'Casablanca', the granddaddy of all great movies.  Not even a challenge.

NoDebt's picture

They are still making that POS?  Thought they discontinued it last year.

 

Cursive's picture

Will anyone remember Apple 50 years hence?  I think very few....at this stage everyone is vying to be a footnote in history.  Even a demigod like Steve Jobs will be largely forgotten by 2050....

NoDebt's picture

Sure they will.  In the same way we remember such greats as Unisys, Sperry, Digital Equipment Corp, Xerox and Kodak.

Anopheles's picture

Young people don't even know who IBM is anymore.   And IBM is still around. 

On an inflation adjusted dollar basis, IBM was the all time highest valued company, with an equivalent value today of around $1.5 trillion.  Today, they are only $155 billion. 

Does anyone remember the Selectric Typewriter?  (the one with the type characters on a ball) 

neidermeyer's picture

I threw away an "Executive" typewriter ,, smaller cooler frame size than he Selectric but with the same mechanism... Mine was that 1970's green and I had an entire box of balls in different fonts... It'll probably be worth a fortune in 50 years.

neidermeyer's picture

They're the Polaroid" of this age ,, new exciting , innovative ,,, and now totally devoid of new ideas.

pods's picture

300 bucks for a watch that you have to plug in at night, isn't waterproof, and lets the matrix ping you whenever it wants?
Ummm, no thanks.

pods 

ironicmerman's picture
ironicmerman (not verified) pods Jul 21, 2016 2:33 PM

Not waterproof?  I thought it was.  I had no interest in buying one, but that's bad.  You forgot one on the list: each model will probably be outdated in a couple years.

pods's picture

Maybe they are.  Haven't looked at them since point 3 is my sticking point on them (they are like a phone you cannot put down).

pods

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) pods Jul 21, 2016 2:47 PM

I think you can take the phone off your wrist, like you could put your phone down... ;P

ironicmerman's picture
ironicmerman (not verified) pods Jul 21, 2016 2:52 PM

I had little interest in one.  I have one dress watch, two dress/casual and one digital beater.  They'll all last longer and do exactly what I need them to do, and they aren't even smart.

Sokhmate's picture

I'm only interested in hour and minute of the day. A minimalist Movado ticking on 18 years now.

Sam Spayed's picture

The Apple watch is so gay.  ... Oh, sorry Tim.

ironicmerman's picture
ironicmerman (not verified) Jul 21, 2016 2:35 PM

I'm amazed at how rarely I see someone wearing one of these things.  I figured that people with an Apple passion would buy one just to continue their brand fawning, but it doesn't look like it took hold.  I see more people wearing a model that's really similar, but I think it's a different brand.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) ironicmerman Jul 21, 2016 2:46 PM

Nah, the Apple Watch is far from the market that smartphones are.  They will never be a mass market thing and I don't really think Apple ever angled it like it would be.  The main question is can Apple profitably make them in smaller numbers (i.e. 8 million per year).  Fitbit, the leader in smartwatches/wristwear, sold 4.8MM in the first quarter and sold 23MM in all of 2015.  There is no way that Apple expected to sell hundreds of millions of them inorder to be profitable.  My guess is that they are already profitably selling them and will continue to do so.  Tim Cook isn't the visionary that Steve Jobs was, instead he's the operations guy that makes sure the supply chain works.  That's what Apple needs right now because growth in the company's products is gone, its all about efficiency now, Apple is just too big for real growth.

Anopheles's picture

The reason you don't see people wearing them is because they only last 4 hours on a  charge.  They've got them plugged in somewhere.... 

 

 

ironicmerman's picture
ironicmerman (not verified) Anopheles Jul 21, 2016 3:30 PM

And there's that.

neidermeyer's picture

You nailed it ... what value is a watch you have to recharge every day (or more) ... My regular watch goes years on a $0.99 battery.

Atomizer's picture

Obama has one with pink earbuds. Say no more. It's pretty easy to hack an Apple watch. 

Winks. Another denial story in the makings. Should of stuck with his BlackBerry government issued phone. He will play on Hillary's case to admit owning multiple devices. Watch him spin this one. 

Bill of Rights's picture

I prefer my I-lube, works great!

 

( Waves palm in the air, look no friction marks )

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jul 21, 2016 2:38 PM

RIP Fitbit then