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Apple May Report Subdued Apple Watch Sales in 3Q15


Nov. 20 2020, Updated 4:27 p.m. ET

Only 3 million Apple Watch units sold in the first three months

Apple (AAPL) launched its long-awaited Apple Watch in April this year. Initially, Apple Watch seemed to have enough consumer interest. Yet Apple didn’t report on sales for the first weekend of its launch, in keeping with a practice that it has followed since it launched a new iPhone. But a report from Slice Intelligence estimates that about 1 million people pre-ordered Apple Watch on the very first day of its launch. Since then, however, it seems user interest in Apple Watch has sunk to alarming levels.

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According to a report from MacRumors, citing Slice Intelligence, Apple is estimated to have sold only 3 million Apple Watches as of July 10, three months after the product’s launch. In contrast, Apple sold 10 million iPhone 6 and iPhone 6 Plus units during the first weekend of their launch in September last year. This suggests that Apple is likely to report subdued Apple Watch sales when it announces its fiscal 3Q15 earnings on July 21.

Fitbit: The main competitor for Apple Watch in the fitness device category

Apple has tried its best to popularize the Apple Watch. A couple of months ago, Apple and IBM (IBM) added three new apps for Apple Watch. And last month, at the Worldwide Developers Conference in San Francisco, Apple released watchOS 2, its software update for Apple Watch.

Fitbit (FIT) remains the Apple Watch’s main competitor in the fitness device market. According to a May survey of 5,000 people, conducted by investment firm Robert W. Baird & Co., and as reported by AppleInsider, 10.6% say they want to buy a Fitbit. The Apple Watch was second choice, with 5.9% of those surveyed wanting to purchase one. Jawbone and Garmin (GRMN) devices trail the Apple Watch in terms of consumer preference, as the chart above shows.

For diversified exposure of Apple, you could invest in the Technology Select Sector SPDR Fund (XLK). This ETF invests 18% of its holdings in Apple.


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