Apple Watch sales estimated at 2.79M, 17% of buyers spring for extra bands
Although Apple has yet to release official Apple Watch sales numbers beyond being "thrilled" about its launch, research firm Slice Intelligence says the company is raking in big profits from Apple-made band accessories, as can be expected.
Analyzing mail receipts from two million people, Slice found more than 20,000 purchased an Apple Watch, Reuters reports. Extrapolating beyond the sample pool results in an estimated 2.79 million units since the device launched in April.
Of those customers who purchased Watch, 17 percent picked up more than one band.
According to Slice, Apple's black Sport Band was the most popular model, both for aftermarket sales and as configured with device. The Milanese loop came in second, but comparative metrics were not provided. The report seems woefully incomplete, however, as it failed to detail how many extra bands are being purchased or offer a comprehensive breakdown of Apple Watch sales by model.
Reuters cites an IHS report that concluded Apple pays about $2.05 to manufacture a $49 Sport Band, though Apple CEO Tim Cook has gone on record as saying build cost estimates are usually wildly inaccurate.
The publication also cites sources as saying Apple will not take in revenue from third-party band manufacturers, but fails to mention a "Made for Apple Watch" licensing program expected to launch based on design guidelines posted by Apple in May.
Analyzing mail receipts from two million people, Slice found more than 20,000 purchased an Apple Watch, Reuters reports. Extrapolating beyond the sample pool results in an estimated 2.79 million units since the device launched in April.
Of those customers who purchased Watch, 17 percent picked up more than one band.
According to Slice, Apple's black Sport Band was the most popular model, both for aftermarket sales and as configured with device. The Milanese loop came in second, but comparative metrics were not provided. The report seems woefully incomplete, however, as it failed to detail how many extra bands are being purchased or offer a comprehensive breakdown of Apple Watch sales by model.
Reuters cites an IHS report that concluded Apple pays about $2.05 to manufacture a $49 Sport Band, though Apple CEO Tim Cook has gone on record as saying build cost estimates are usually wildly inaccurate.
The publication also cites sources as saying Apple will not take in revenue from third-party band manufacturers, but fails to mention a "Made for Apple Watch" licensing program expected to launch based on design guidelines posted by Apple in May.
Comments
The Guesstimators are far off even when they have better metrics than these idiots....
I'm guessing that number will be considered a huge failure for Apple and the cries for the removal of CEO Tim Cook will quickly start. I was under the impression the Wall Street geniuses and tech pundits felt Apple should have sold this many AppleWatches the first weekend. This will be considered an abysmally slow start and critics will say that Apple has lost its way. More numerical fodder to drive Apple's share price down even further. Since outright sales numbers are the only thing that matters to Wall Street this number definitely doesn't look good, no matter what the profit margins are. I would honestly think Apple is doing quite well to keep its numbers in the black, but Wall Street only shows red. I'm hoping this number came about due to restrained supply and not lack of demand. The pundits will quickly turn this into "No one is interested in AppleWatches and they would rather have new iPods." No Apple love to be found.
To me that number seems way too low, I expect Apple shifted that many in opening weekend pre-orders alone. By now I would imagine they're into double digit millions in terms of sales. Don't forget this is a guesstimate from one source and only accounting for the US.
yes.. they seem to have missed the other 1 billion plus people it was loosely made available to for purchase.
and what mail receipts were they snooping???? that sounds incredibly dodgy
"Analyzing mail receipts from two million people, Slice found more than 20,000 purchased an Apple Watch, Reuters reports. Extrapolating beyond the sample pool results in an estimated 2.79 million units since the device launched in April."
Seriously...
What the F does that even mean?
So little context to these two sentences. I have no idea what A.I. is saying.
Googs probably offers the data.
"Analyzing mail receipts from two million people, Slice found more than 20,000 purchased an Apple Watch, Reuters reports. Extrapolating beyond the sample pool results in an estimated 2.79 million units since the device launched in April."
Seriously...
What the F does that even mean?
So little context to these two sentences. I have no idea what A.I. is saying.
LMAO - There is so much room for error in this analysis, it is hardly scientific. One may as well randomly walk down a street, see that 2 people out of 500 are wearing Apple Watch, and extrapolate it out. So meaningless, and yet even readers here are taking it as gospel and analyzing what Wall Street is going to say about it. Ha.
Let's just wait until the next Apple hardware release announcement, where they will most likely state how many watches they have sold. Also, I have no doubt that they are and will sell every Watch that comes off the assembly line. They are working their butts off to get manufacturing process efficient, and also working with their suppliers to get their yields up as well. Each month, we will see greater numbers coming off the assembly lines, and Apple will sell each of them.
https://itunes.apple.com/us/app/slice-smart-shopping-assistant/id475854271?mt=8
So everyone using this app has their email analyzed? How many people have downloaded this app?
they must be killing it on the bands. even if it costs them $10 to make, which seems unlikely, it's a huge profit margin.
In terms of the industry at large, that's impressive (though the number is probably higher.) In terms of the smartwatch segment, it's an absolute bloodbath.
LMAO - There is so much room for error in this analysis, it is hardly scientific. One may as well randomly walk down a street, see that 2 people out of 500 are wearing Apple Watch, and extrapolate it out. So meaningless, and yet even readers here are taking it as gospel and analyzing what Wall Street is going to say about it. Ha.
Let's just wait until the next Apple hardware release announcement, where they will most likely state how many watches they have sold. Also, I have no doubt that they are and will sell every Watch that comes off the assembly line. They are working their butts off to get manufacturing process efficient, and also working with their suppliers to get their yields up as well. Each month, we will see greater numbers coming off the assembly lines, and Apple will sell each of them.
Tim stated that, for competitive reasons, they would not be breaking out sales of the watch. I would expect that analysts will gain better insight on sales over time, and that should translate to more accurate quarterly sales estimates.
Or not.
Tim stated that, for competitive reasons, they would not be breaking out sales of the watch. I would expect that analysts will gain better insight on sales over time, and that should translate to more accurate quarterly sales estimates.
Or not.
My interpretation of Tim's comment was that they would not break out sales revenue of the Watch as a separate financial category. This doesn't mean that he won't toss out a volume statistic or two during an upcoming hardware release. But, I may be wrong.