Apple Sales Ping!
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Posted on 07/01/2015 6:56:47 PM PDT by Enlightened1
While iPhone sales remain strong, Apple Watch sales look limp. Pacific Crest Securities analyst Andy Hargreaves on Wednesday raised his Apple (NASDAQ:AAPL) iPhone sales estimates, but trimmed his targets for the Apple Watch. Hargreaves has a sector weight rating on Apple stock, with a 12-month fair value of 139.
Apple stock was up a fraction, near 126, in afternoon trading on the stock market today. Apple stock touched its all-time high above 134 on April 28.
"Anecdotal evidence suggests Apple Watch demand is slowing quickly," Hargreaves said in a research note. "This dovetails with recent supply checks, which suggested a reduction in component order volume."
As a result, Hargreaves cut his Apple Watch unit sales estimate for fiscal 2015 ending Sept. 26 to 10.5 million from 11 million. He trimmed his fiscal 2016 Apple Watch unit estimate to 21 million from 24 million.
Meanwhile, the iPhone is poised to make sustained market share gains, Hargreaves said.
He raised his fiscal 2015 iPhone unit sales estimate to 236 million from 229 million and upped his fiscal 2016 estimate to 218 million from 208 million. Hargreaves raised his earnings forecasts in tandem.
"Although we continue to expect iPhone sales to decline in the coming refresh cycle, ongoing share gains should prevent the decline from being as severe as we previously expected," Hargreaves said.
The next iteration of the iPhone is expected to be released this September, as has been the custom for Apple. The new handsets, expected to be called the iPhone 6S series, are already in production in China, according to Bloomberg.
(Excerpt) Read more at news.investors.com ...
A tablet is about as small of a display I find useful for extended use.
No real surprise. These watch-thingies are pretty much very expensive, REALLY geeky, not-terribly-useful toys. I figured there would be a big flurry of sales as all the AppleFanbois rushed out to buy the latest Apple gizmo, and then things would settle down once the rest of the world saw they could live without one.
I’ve had a Smart Watch for years....the pocket watch version, more commonly known as a smart phone.
to me Apple Watch is a gimmick until the battery last more than a day and until its waterproof.
Its hard to call multi billions of revenue for a new product a failure.. its just 1.0 IMHO much like the original iPhone. Its hindered in what it can do, its batter life is less than it needs to be, and most folks have to be convinced it brings value to the table.
I suspect the 2.0 version will address most of this, as it is watchkit 2.0 unlimits the APIs so you can write watch only apps, a bit limitation of the 1.0...
Much like it was the 3G and 3GS that mainstreamed the phone, I think it will take rev 2 or 3 of the device for it to find more than the “oooo apple launched a new product” market. By rev 2 or 3 the benefits if any will be obvious and it will stand or die on its own.
For me personally $400 for something so limited at the moment isn’t worth it, as a developer I have to limit my designs around the crippled API that the watch has... So much so that I have not ported any of my apps to support it currently, though clearly I can see the benefit to my users who own of these to support it.
The watch however will never see the phone sales, no device will, the inherent 2 year contract cycle virtually ensure demand from those upgrading every 2 years, when you remove that from the equation, such as with the iPAD you see that the refresh cycle isn’t there.
Carl Icann sold his Netflix stock for Apple.
He made a big mistake.
I own both myself. I think Carl is trying to lower the value of Netflix and his son (who did not want to sell) will buy more Netflix stock.
Of the remaining people, how many really want that sort of thing anyway?
Completely correct. But with a new generation of dry-electrode lithium-ion batteries that use graphene coming to the market in the next few years, we may see triple the battery life out of the Apple Watch pretty soon.
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When I put my Apple Watch on the charger at 1AM or 2AM after putting it on at 8-9AM the previous morning, it invariably has between 65% and 75% battery life left. That is far more than one day's usage per charge. My girlfriend's watch is about the same, or a little more. She has the 38mm so hers is driving a smaller screen.
The Apple Watches are reportedly good for taking showers and others are reporting having gone swimming for up to a half-hour with theirs on. I am not planning to test mine in either situation. The water-resistance rating for the Apple Watches is sufficient for that level. No watch is rated as "water proof', only "water resistant" to varying pressures and depths.
Despite the price, it seems to be selling well overseas. Perhaps those contrarian predictions (including Carl Icahn’s) that the stock is headed over 200 are correct.
I quit wearing watches once the phones were small enough to put in my pocket.
So Apple will "only" sell 10.5 million watches in FY15 and "only" 21 million watches in FY16?
Most companies would love to have "failures" like that.
42mm Sort with the black band.
No one wants to own an overpriced piece of crap that screams “I am a sodomite!”
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