Despite Price Cut, Apple Watch Sales Were Likely Sluggish During Fiscal Q2

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We estimate that the Apple Watch likely sold about 2.3 million units over fiscal Q2, implying a sequential decline of close to 60%. While the device saw some discounts through the quarter, sales appear to have remained sluggish, amid economic and currency headwinds in China, shrinking iPhone shipments (down 16% year-over-year) and a possibility that customers are waiting for the next iteration of the device, which could launch sometime this year. (Related: How Many Apple Watches Did Apple Sell Over The Holiday Quarter?)

Apple includes Watch revenues in its Other Products segment, which also includes its Beats, iPod, Apple TV and accessories businesses.((Apple Q2’16 Unaudited Summary Data))  Here’s how we estimate Watch figures:

Watch_11

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Apple