The brand new Apple Watch recently unveiled by Apple has experienced a dramatic change in sales. Since the opening release, sales have dropped 90% as claimed by a market-research study.
Apple Inc. (NASDAQ:AAPL) has been making less than 20,000 Apple Watch sales a day in the U.S. Some days the company sells less than 10,000, which was found out through information from Palo Alto, Calif.-based Slice Intelligence.
To put this into perspective, Apple sold 1.5 million watches during the first week of April 10. This is about 200,000 watches a day, which is monumental compared to the numbers they are getting right now.
To make matters worse, the watches they are currently making the most sales on happen to be the cheaper model. According to Slice, two-thirds of the sales are the “Sport” version, which flaunt a $349 price tag. The more profitable and advanced versions begin at $549.
Apple even attempted to reach out to the wealthy that could could drop a large amount of money on a watch. They released a “gold edition model” which sold for $10,000 or more. Slice states that less than 2,000 of these models have been taken off the shelf just in the U.S.
Slice gathers this information through sending electronic receipts to new customers, following their purchase. This research group directs consumer studies on numerous Fortune 500 companies.
This plunge in sales may worry some investors, customers, and fans of the company.
However, you would have to expect the drop in sales following the opening release week. Even if Apple Watch sales go down even more, it may relieve investors knowing it is only four percent of the business. This makes it a tiny part of the bigger picture.
Still, the decrease in sales creates an alarming question. Will Apple still exceed in innovation even after their creative founder, Steve Jobs’ death? It is important to note that this is the first new product to be created and released since Jobs’ death.
Investors and customers are accustomed to seeing Apple products sell quickly, and drop steadily. However, the Apple Watch is Apple’s venture into the market of wearable technology. It has created a rivalry with Fitbit Inc. (NYSE:FIT), creating competition in the world of health monitoring. An increase in sales is to be expected due to the mindset of needing the latest tech.
Apple has yet to make a comment on the Watch’s drop in sales. It may be too early to fully analyze this data, but investors can justify being worried.