Analyst Revises Apple Watch Shipment Estimates Due to Uncertain Levels of Customer Demand, Supply Issues

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Posted May 20, 2015 at 4:34pm by iClarified

KGI Securities analyst Ming-Chi Kuo revised his forecasted number Apple Watch shipments, citing uncertain demand and supply constrains. Kuo lowered his shipment forecasts be 20% to 30%% to 5-6 million units in the third quarter.

Kuo believes Apple will ship 15 million units for the 2015 fiscal year (through September) -- much lower than original expectations. KGI securities also conducted a survey to find that most Apple Watch orders are scheduled to ship in June and so far, over 80% of the orders have been for the 42mm model.

"We have learned that 42mm Apple Watch accounts for 60-70% of production. However, the shipping times of 38mm models are generally earlier than those of 42mm. We believe this is because demand for 38mm watches is significantly below that of 42mm ones. We estimate that 42mm models account for over 80% of sales. Assuming that 42mm and 38mm watches are mainly purchased by men and women respectively, the Apple Watch has attracted mostly men."

Finally Kuo believes that like the original iPhone, the Apple Watch has a lot of room for improvement. Specifically, he believes the Apple Watch lacks killers apps, has insufficient battery life, and suffers from sluggish progressing power.

via MacRumors

Analyst Revises Apple Watch Shipment Estimates Due to Uncertain Levels of Customer Demand, Supply Issues

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dkdk - May 20, 2015 at 6:53pm

I gotta say though, so far the battery has exceeded my expectations and even the specs... I have a 42mm that I use all day, lots of notifications and messaging, plus activities and bike ride from 90 to 120 minutes a day, and I never end my 16 hour days with less than 35%. If battery life is holding people back from buying one, I wouldn't be concerned about it.

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tubex45 - May 20, 2015 at 5:52pm

"Finally Kuo believes that like the original iPhone, the Apple Watch has a lot of room for improvement. Specifically, he believes the Apple Watch lacks killers apps, has insufficient battery life, and suffers from sluggish progressing power." --Well this was very obvious right when Tim Cook announced it.

1481a87 - May 20, 2015 at 9:45pm

"Well this was obviously right when Tim Cook announced it". WRONG!!! Secret port for extra battery, apps are continuing to be made like the App Store from the original iPhone once started out as so that's enough to tell how anything Apple makes it grows, plus there was recently an update so...