An Overnight Billion-Dollar Business

Apple-Watch

Carl Howe has an excellent track record as an analyst of Apple products and practices, and here are his preliminary numbers on Apple Watch pre-launch sales:

The Apple Watch went on sale for pre-orders on April 10, 2015, and the Apple Store tells us that delivery dates for all orders now stretch into summer and beyond. We know that the initial production run of Apple Watch has sold out; what we don’t know is how many Apple Watches that represents. I’ve built a simple model that predicts that the initial run of watches was more than 3 million units and will yield Apple Watch revenues of over $2 billion for the first two weeks of sales. While this figure is smaller than first weekend sales of iPhone 6 and 6 Plus, it dwarfs all other smartwatch sales to date and represents a milestone in wearable sales. The model suggests that while Sport Watch will lead sales in volume, selling 1.8 million units through May 8, Apple Watch will actually lead in revenue during that period, garnering about $900 million versus Sport’s $675 million. I also believe that Apple’s decision to introduce the Edition will be validated by $500 million in sales on only 40,000 units.

Advertisement

Back in September when Tim Cook first demoed the Watch, I wrote, “At long last we know what a wearable computer is supposed to look like, what it’s supposed to do, and how it’s supposed to work.”

Consumers — so far — would seem to agree, and in numbers never before seen for any new electronics device. Ever.

Those who predicted Apple Watch would flop from the start have some ‘splainin to do.

(Hat tip, John Gruber.)

Recommended

Trending on PJ Media Videos

Join the conversation as a VIP Member

Advertisement
Advertisement