Study: Apple Watch price drop goosed sales 250%, iPhone SE popular among switchers

Posted:
in General Discussion edited April 2016
Apple's decision to slash Apple Watch pricing paid off in a big way, as average daily sales over the last month jumped 250 percent sequentially, according to new metrics from Slice Intelligence. The firm also looked at iPhone SE and iPad Pro ahead of Apple's earnings call on Tuesday.




The research firm's Apple Watch numbers offer insight into Apple's recent decision to cut the wearable's price of entry by $50, bringing 38- and 42-millimeter Sport models down to $299 and $349, respectively. Slice's statistics account for the last month of sales, excluding March 21, the day Apple cut Watch pricing.

In a related finding, Apple's new woven nylon bands have performed well since their initial release last month, accounting for 60 percent of first-party strap accessory sales. Interestingly, overall additional band sales decreased slightly in the weeks following Apple's Watch price cut. Extra band sales among buyers who purchased the accessory now stand at 1.3 bands, down from 1.6 bands in mid-March.

As for iPhone SE, Slice found sales of the stripped-down handset pale in comparison to 2014's iPhone 6 launch, results expected from a non-flagship refresh. Specifically, iPhone SE generated 4 percent of the sales iPhone 6 saw during its first month of availability.

Broken down by demographic, 15 percent of iPhone SE buyers upgraded from a non-Apple smartphone, while 54 percent didn't purchase a phone in the past two years, up from 49 percent for other iPhone models. The latter statistic is important to Apple's growth strategy, which finds the $399 SE positioned as an entry-level handset to the iPhone 6 and flagship iPhone 6s.

Finally, interest in Apple's 9.7-inch iPad Pro is mounting, with first month sales figures now at 55 percent of those generated by the 12.9-inch iPad Pro over the same period, up from 37 percent one week after launch.
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Comments

  • Reply 1 of 24
    jungmarkjungmark Posts: 6,870member
    I don't understand. Analysts declared the watch and SE failures already. Why do we need facts and stats? /s
    calimacky the mackyValueAnalystcornchipnolamacguy
  • Reply 2 of 24
    mac_128mac_128 Posts: 3,454member
    jungmark said:
    I don't understand. Analysts declared the watch and SE failures already. Why do we need facts and stats? /s
    Especially since the facts and stats aren't glowing across the board. In order to spin the stats positive for one product, you have to accept a negative spin for another. It's lose, lose. Best to just ignore.
  • Reply 3 of 24
    kpomkpom Posts: 653member
    Who'd have figured a modest price drop of $50 would make such a difference? I wonder if the same would help with the Stainless Steel model?
  • Reply 4 of 24
    rogifan_newrogifan_new Posts: 4,297member
    Rumor sites pimping Ming Kuo Cho or Slice Intelligence. I don't know which is worse. What exactly is Slice's research? Scanning email receipts from people who opt in? Why should we assume it's meaningful?
    caliSpamSandwich
  • Reply 5 of 24
    WTF is "goosed?"
    cornchip
  • Reply 6 of 24
    wizard69wizard69 Posts: 13,377member
    kpom said:
    Who'd have figured a modest price drop of $50 would make such a difference? I wonder if the same would help with the Stainless Steel model?
    It is the perception of getting a "deal".
  • Reply 7 of 24
    MnMarkMnMark Posts: 22member
    I'm interested to see actual SE sales numbers at some point because I'm still waiting for mine, and I know quite a few other people who ordered. I don't want an iPad sized phone, but I wanted one with Apple Pay ETC. I think it' s great market to be in. I think getting the newest phone every year will fall to only the most obsessed folks. And Apple makes money from services with each phone sale so they can make some money even when people don't buy a new phone. Not sure how the other smartphone hardware makers do if they don't sell new hardware every 12 months.
    cornchip
  • Reply 8 of 24
    boeyc15boeyc15 Posts: 986member
    kpom said:
    Who'd have figured a modest price drop of $50 would make such a difference? I wonder if the same would help with the Stainless Steel model?

    Of course. Another $75 drop on the aluminiumiumnummum and I'm in!!! 

  • Reply 9 of 24
    WTF is "goosed?"
    2 : to increase the activity, speed, power, intensity, or amount of : spur
  • Reply 10 of 24
    dasanman69dasanman69 Posts: 13,001member
    WTF is "goosed?"
    You're either young, or not an American. 
  • Reply 11 of 24
    fallenjtfallenjt Posts: 4,034member
    kpom said:
    Who'd have figured a modest price drop of $50 would make such a difference? I wonder if the same would help with the Stainless Steel model?
    Psychological impact: $299.99 appears better than $300 in consumers's eye . Consumers used to the price of smartwatch under $300. This should've been the price when they released the Watch. Phil Schillers was quite greedy with $349/$399 Sport versions.
    edited April 2016 dachar
  • Reply 12 of 24
    fallenjt said:
    kpom said:
    Who'd have figured a modest price drop of $50 would make such a difference? I wonder if the same would help with the Stainless Steel model?
    Psychological impact: $299.99 appears better than $300 in consumers's eye . Consumers used to the price of smartwatch under $300. This should've been the price when they released the Watch. Phil Schillers was quite greedy with $349/$399 Sport versions.
    Wow. You must be a go-to pricing expert at a major multinational. 
    edited April 2016 cornchipronnSpamSandwichnolamacguy
  • Reply 13 of 24
    I'm one of those who just received my 256GB Space Gray Cellular iPad Pro Friday April 22 and my case today. It's a BINGO!
    edited April 2016
  • Reply 14 of 24
    WTF is "goosed?"
    2 : to increase the activity, speed, power, intensity, or amount of : spur

    And I always thought it meant pinching someone's bottom.
    cnocbuimattinoz
  • Reply 15 of 24
    foggyhillfoggyhill Posts: 4,767member
    Goosed is a pretty old term, not used as much these days but should still be understood by most.
  • Reply 16 of 24
    WTF is "goosed?"
    I thought it was a typo for "boosted" maybe. Goosed here in Scotland means broken :| if something is unrepairable you'd say it's goosed.
  • Reply 17 of 24
    mattinozmattinoz Posts: 1,636member
    2 : to increase the activity, speed, power, intensity, or amount of : spur

    And I always thought it meant pinching someone's bottom.
    Which boosts them along.
    If you find sexual harassment motivating I guess.
    edited April 2016
  • Reply 18 of 24
    cornchipcornchip Posts: 1,857member
    WTF is "goosed?"

    "Then my brother goosesd the throttle on that Oldsmobile…" – my grandfather 
  • Reply 19 of 24
    cornchipcornchip Posts: 1,857member
    MnMark said:
    Not sure how the other smartphone hardware makers do if they don't sell new hardware every 12 months.
    They're blessed with a subpar OS and then the carriers add in bloatware & they add on bloatware of their own which adds up to a laggy chugging tangled mess after a few months. It makes the latest model "sooo much better which "gooses" sales.
  • Reply 20 of 24
    ronnronn Posts: 449member

    And I always thought it meant pinching someone's bottom.
    I'm old. If I remember correctly from my New England summers, it's what boys acting silly did to each in the locker room, but didn't include the bum/bottom. :neutral: 
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