Apple Watch Is Not Selling Well

Posted: Aug 1 2015, 7:05am CDT | by , in Apple


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Apple Watch Is Not Selling Well

Apple Watch Fails to Reach Supplier 'Break-Even Volume'

The Wall Street Journal cites today that the sales of Apple Watch failed to reach the suppliers’ break-even volume.

The volume was supposed to be of two million units per month. Particular sales of Apple Watch have been a riddle since its release in April.

Just a few experts have presented their own opinion in numbers. Presently, Taiwan’s Advanced Semiconductor Engineering Inc. has hinted at sales of the device.

ASE is in charge of putting the greater part of the interior parts of Apple Watch into a case. The procedure is known as system-in-package.

The company now claims that sales of Apple Watch are not high as they were expected to be.

Mark Li, a Bernstein Research analyst, said recently that an ASE subsidiary told investors that the company did not hit its “break-even volume” of two million Apple Watch units per month in the second quarter of 2015.

Moreover, ASE does not hope to achieve the two million for each month amid the third quarter either. ASE now expects that it won't hit its aim of delivery 18 million units in 2015.

Prior this month, Tim Cook indicated that Apple Watch income was higher than $1 billion.

This prompts that the sales would be higher than 3 million units for the quarter.

Mr. Li wrote in a note to customers, “The shortfall of Apple Watch is a disappointment. We came in with a low expectation but below break-even still surprised us.”

Apple and Tim Cook are repeatedly claiming that Apple Watch was beating desires amid its first full quarter of sales.

The management says that Apple doesn't want to provide information that may help its competition.So, it’s unlikely that we’ll get confirmation anytime soon.

Apple is dominating smartwatch market with 70% share and it seems like this will remain for a long time. Apple fans are somehow disappointed with the Apple Watch as we are yet to see any practical use of the watch.

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The Author

<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.




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