We believe that this product will redefine what people expect from its category. This is the next chapter in Apple’s story -Tim Cook
Last year when Tim Cook officially unveiled the Apple Watch alongside the next generation iphones, everyone was like, can they nail it? Can they do what other manufacturers haven’t been able to in 3 years? Hence began the speculations, that ran far and wild months prior to its launch. Then one day came reports that the Apple Watch adoption rate would be 10% of the existing user base on launch. People were baffled. Because if this was the case, Apple’s darling would end up selling atleast 40 million units, a number atleast 8 times greater than all of smartwatch sales combined. While techies were less convinced, something about the market seemed to suggest otherwise because polls were conducted one after the other, the results of which were all drawn in favour of the ‘to-be’ milestone. Then came the launch and the regular bustle associated with it, with people reportedly going crazy over the watch. But one fine, this cropped up, the first report that Apple users weren’t actually satisfied with their watch and hence only 4 out of 10 would recommend it. Apple was quick to respond and in a press release told the media that the watch was consistently beating expectations.
But for such a revolutionary product that supposedly was also a ‘massive success’, the center stage during the quarter reports would seem more or less due. But forget about the center stage, Apple watch was not even mentioned, only ‘hinted’ at. It was slyly concealed in the ‘Other Products’ category with the only mention being the 1 billion increase, from 1.6 Billion to 2.6 bn. People, just as Tim Cook would want it safely assumed that the increase of a billion dollars here would all be accounted for, by the watch. But a recent release by their own supplier seems to suggest otherwise.
“The shortfall of Apple Watch is a disappointment,” Mr. Li wrote in a note to clients. “We came in with a low expectation but below break-even still surprised us.”
If the Apple watch would’ve accounted for the entire 1 billion dollars, there would’ve been atleast 3 million watches sold, and we stress on ‘atleast’. But it seems that ASE, (Advanced Semiconductor Engineering Inc.) the company that assembles the watch for Apple is not amused. How would it be? Because it reported unexpected losses and it had to clear out reasons. And apparently, they were not in a mood of making stuff up. They straight out called the watch a disappointment, saying it did not even meet the break even point of 2 million units per month and nor does it expect it to, this year. This means that even with all the bustle that is to be about Apple this year, the holiday season and also Christmas, ASE is sure the Apple watch won’t even square out. This is a bold statement, something that could impact sales even more. If this is a wise move or not, it is for you to decide. But it does say a lot about Apple. They have been constantly shying away from sharing precise numbers, only for the Apple watch. They have been constantly out defending it, calling it a thrilling surprise. But it seems as if the thrill isn’t real, nor are the company’s claims. The actual failure of the watch did not hurt half as much as Apple pushing hard to hide things away from us all. It is something we don’t particularly find amusing. Seems as if this particular chapter in their story wasn’t the merry experience they were anticipating.
Featured Image Courtesy: Mashable