Is the Apple Watch already fading?
Despite a strong start, Apple’s latest gadget might not be as popular as the company first thought. According to a report by Wall Street tech analyst Andy Hargreaves, demand for the Apple Watch is falling already. Hargreaves forecasts are based on “store visits, Google search volume, third-party data and recent supply checks,” which all pointed towards the trend.
In the short term, Hargreaves believes demand is healthy. In his report, Hargraves predicts sales “should allow Apple to meet or exceed” his initial forecast of 5.5 million in the first three months of sales – but predicts a slowdown soon after.
The Pacific Crest Securities analyst cut his sales estimates for the Apple Watch in the second half of the year to 10.5 million – down from 11 million. For 2016, Hargreaves revised his estimates from 24 million watches sold to 21 million.
This downward trend could stem from the Apple Watch’s niche appeal compared to popular products such as the iPhone. It’s possible that those most interested in the Apple Watch have already bought it. Early adopters and Apple fans could have contributed heavily to sales and interest around the Watch’s launch, meaning we’re now seeing the level of demand from average shoppers.
Hargreaves’ findings indicate that, despite a heavy push towards the lifestyle and fashion sectors, the Apple Watch may have less traction with the average consumer than Apple hoped.