KGI lowers Apple Watch forecast significantly, says over 80% of sales are larger 42mm version
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Sunday, 13 August 2017
New KGI research note predicts that production of the Apple Watch’s Taptic Engine component will begin to improve later this month, but slow demand has led to a downward revision of estimated shipments by 20-30%. The new estimate comes in at 5-6 million units shipped in the third quarter.
Combining that estimate with the data from last quarter has caused KGI to cut its annual shipment estimate in half. Where the general consensus previously predicted that Apple should ship 20-30 million smartwatches, the firm’s new number comes in at under 15 million.
The note also says that Apple Watch demand seems to be slowing down. Right after the device debuted, shipment dates dropped all the way back to June. Since then, there hasn’t been a substantial downgrade in shipment times, leading KGI to believe that the units produced in Q2 are keeping up with the current demand (while slowly catching up with the demand from launch). Since Taptic Engine output has not yet picked up, this “flattening” of demand is not likely to be due to increased production.
According to a research note from KGI Securities, demand for the Apple Watch has been slower than expected. As a result, the securities firm has lowered its annual shipment estimates for Cupertino’s wearable device by half.
Previously, Apple was expected to move between 20 and 30 million smartwatches. The new estimates from the typically accurate KGI Securities suggest that the company will ship less than 15 million units.
Roughly a month ago, The Wall Street Journal reported that faulty Taptic Engines slowed down the Apple Watch shipments. Production output of the component has reportedly not picked up just yet.
KGI’s note further claims that 80% of all Apple Watch orders are for the larger 42mm model. Apple is yet to reveal any sales numbers for the smartwatch.
