The Apple Watch became available for pre-order on Friday. After a slow start, analysts called the pricey little gadget's debut "respectable".
Several analysts estimated Apple received about 1 million pre-orders. Apple, which usually provides numbers after a weekend launch, has not confirmed the numbers.
In lieu of any official numbers from the company, many media outlets have turned to third-party data from Slice Intelligence, an online shopping data firm, which estimates that nearly one million people pre-ordered the watch on Friday. But again, it's worth stressing that these are in no way official numbers.
Still, if the magic number is 1 million pre-orders, the boxy little device is off to a rockier start than some industry watchers had anticipated. Analysts were scrambling to figure out whether Apple had correctly judged supply and demand — and price.
Apple's new line of smartwatches sold out less than 30 minutes after being made available for pre-order online on Friday morning.
Analysts were wary, however, of the limited supply of the devices.
Gene Munster, an Apple analyst with Piper Jaffray had previously estimated that the company would ship 1 million watches on its opening weekend starting April 24, when buyers will be able to walk to Apple Stores and order the latest in geek fashion.
Apple does not seem well-stocked, however, with watches to meet demand, judging by the fact that customers will have to wait until at least June to own one.
"Given the quick sellout, it seems less likely that Apple will be able to deliver 1 million units of stock on opening weekend," Gene Munster, an Apple analyst with Piper Jaffray, wrote in an investor note Sunday night provided to Mashable.
To put that in context: It took Apple 74 days to sell one million iPhones and 28 days to sell one million iPads. So even if sales are constrained by supply, it still likely represents a significant increase in momentum from previous new Apple products.
Analysts at Cantor Fitzgerald were more positive on the launch, writing that the Apple Watch had "gotten off to a strong start," according to CNET.
At Cowen, the Apple Watch debut was deemed "respectable."
The most recent survey from Raymond James, a financial services firm, suggests that 5% of iPhone users intend to buy a watch, which would be about 20 million watches.
Edward Yruma, a research analyst at KeyBanc Capital Markets, wrote in a research report Sunday that its supply checks suggest Apple is ordering enough components to build at least 20 million watches this year.
The success of the Apple Watch — or its flop — will have implications for the company's future. Analysts will be watching to see if Apple can deliver on its track record for populist innovation.
Some experts have raised concerns about the early mixed reviews for the first generation version of the Apple Watch.
“We are concerned that relatively muted reviews so far could place added fear in investors’ minds about the company’s ability to launch successful new product categories," Tavis McCourt, an analyst with Raymond James, wrote in an investor note.
Models of the Apple Watch start at $349 for the basic Sport model and go up to $17,000 for the gold-trimmed, red-leather-banded Apple Watch Edition for which the company requires buyers to enter a VIP room guarded by employees.
Slow start or not, Yruma says the Apple Watch is a "moment of reckoning" for the traditional watch industry, which may not be ready for how the Apple Watch changes everything.
Several analysts estimated Apple received about 1 million pre-orders. Apple, which usually provides numbers after a weekend launch, has not confirmed the numbers.
In lieu of any official numbers from the company, many media outlets have turned to third-party data from Slice Intelligence, an online shopping data firm, which estimates that nearly one million people pre-ordered the watch on Friday. But again, it's worth stressing that these are in no way official numbers.
Still, if the magic number is 1 million pre-orders, the boxy little device is off to a rockier start than some industry watchers had anticipated. Analysts were scrambling to figure out whether Apple had correctly judged supply and demand — and price.
▲ Apple watch trap
Apple's new line of smartwatches sold out less than 30 minutes after being made available for pre-order online on Friday morning.
Analysts were wary, however, of the limited supply of the devices.
▲ Apple watch health application
Gene Munster, an Apple analyst with Piper Jaffray had previously estimated that the company would ship 1 million watches on its opening weekend starting April 24, when buyers will be able to walk to Apple Stores and order the latest in geek fashion.
Apple does not seem well-stocked, however, with watches to meet demand, judging by the fact that customers will have to wait until at least June to own one.
"Given the quick sellout, it seems less likely that Apple will be able to deliver 1 million units of stock on opening weekend," Gene Munster, an Apple analyst with Piper Jaffray, wrote in an investor note Sunday night provided to Mashable.
To put that in context: It took Apple 74 days to sell one million iPhones and 28 days to sell one million iPads. So even if sales are constrained by supply, it still likely represents a significant increase in momentum from previous new Apple products.
Analysts at Cantor Fitzgerald were more positive on the launch, writing that the Apple Watch had "gotten off to a strong start," according to CNET.
At Cowen, the Apple Watch debut was deemed "respectable."
The most recent survey from Raymond James, a financial services firm, suggests that 5% of iPhone users intend to buy a watch, which would be about 20 million watches.
Edward Yruma, a research analyst at KeyBanc Capital Markets, wrote in a research report Sunday that its supply checks suggest Apple is ordering enough components to build at least 20 million watches this year.
▲ Apple watch line up
The success of the Apple Watch — or its flop — will have implications for the company's future. Analysts will be watching to see if Apple can deliver on its track record for populist innovation.
Some experts have raised concerns about the early mixed reviews for the first generation version of the Apple Watch.
“We are concerned that relatively muted reviews so far could place added fear in investors’ minds about the company’s ability to launch successful new product categories," Tavis McCourt, an analyst with Raymond James, wrote in an investor note.
Models of the Apple Watch start at $349 for the basic Sport model and go up to $17,000 for the gold-trimmed, red-leather-banded Apple Watch Edition for which the company requires buyers to enter a VIP room guarded by employees.
Slow start or not, Yruma says the Apple Watch is a "moment of reckoning" for the traditional watch industry, which may not be ready for how the Apple Watch changes everything.
▲ Apple watch GUI
