“Fossil Group’s latest financials show the watchmaker is clearly hurting from Apple’s encroachment into the traditional hardware sector,” Lauren Thomas reports for CNBC. “Shares of Fossil were trading down more than 24 percent Wednesday morning, following the company’s dismal first-quarter earnings report.”
“‘Our results for the first quarter … continue to reflect a challenging retail environment and a watch category undergoing significant change,’ Fossil CEO Kosta Kartsotis said on the earnings conference call,” Thomas reports. “After the bell on Tuesday, Fossil reported a loss of 65 cents per share on sales of $581.8 million, while Wall Street had forecast losses of 34 cents a share on revenue of $591 million, according to Thomson Reuters’ analysts.”
“Meanwhile, Apple Watch sales are gaining momentum, as Tim Cook’s company continues to disrupt the traditional hardware space,” Thomas reports. “In its latest earnings report, Apple said its sales from “other products” — Apple Watch, Apple TV and Beats products — grew 31 percent year-over-year.”
Read more in the full article here.
MacDailyNews Take: Pebblized Fossil.
YKBAWID.
SEE ALSO:
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The Apple Watch is winning – March 2, 2017
Apple Watch had massive holiday quarter; took nearly 80% share of total smartwatch revenue – February 10, 2017
The Apple Watch ‘WOW’ moment – February 3, 2017
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Apple smashes Street; iPhone, Services, Mac and Apple Watch set all-time records – January 31, 2017
Apple Watch has blood on its hands: Pebble is dead – December 7, 2016
Apple Watch has blood on its hands: ‘Microsoft Band’ wearable is dead – October 4, 2016
Computerworld reviews Apple Watch Series 2: It’s time to jump in – September 27, 2016
Ars Technica reviews Apple Watch Series 2: ‘Great experience with very few hiccups’ – September 22, 2016
Mossberg reviews Apple’s watchOS 3: Quicker, easier, and more useful – September 21, 2016
CNET reviews Apple Watch Series 2: ‘The smooth wrist companion it was always meant to be’ – September 14, 2016
WSJ reviews Apple Watch Series 2: ‘Apple Watch finds its purpose in life’ – September 14, 2016
The Verge reviews Apple Watch Series 2: There’s something effortlessly cool about it – September 14, 2016
Apple Watch Series 2: Apple refocuses its smartwatch – September 12, 2016
You know because Apple Watch is doomed.
Doomed I tell yah.
Fossil was a bad pick for a name if you want to suggest longevity.
Actually, quite the opposite: they’ve not only beaten the extremely low odds to become a fossil in the first place, they also stick around for insanely long amounts of time, and are the object of intense interest once uncovered and/or displayed. To me, the name is perfect for a timepiece company.
“Fossil” might suggest that something long gone, but the actual word for that is “extinct”.
I sold all my Fossil shares when Apple Watch was launched.
As co founder of Swatch Mock said around that time “Anything in the price range of 500 francs to 1,000 francs is really in danger, I do expect an Ice Age coming toward us.”.
btw. many people denied this would happen saying that traditional watches were mostly immune because of ‘collectors’ etc. Perhaps the higher price ranges are safer but as Mock said anything within Apple Watch range need to watch out.
When Apple Watch came out, Fossil was one of the brands that was mentioned as being especially vulnerable.
The higher end manufacturers ( such as Rolex, Tissot, Bulova, Lacroix and Tag Heuer ) are operating in a different market segment and the effects of Watch on their sales will be different, but mid-range watches which aren’t collectors items were always going to be at risk.
At the sub $50 end of the market ( such as Swatch, Timex, Casio ), Apple Watch obviously isn’t going to be regarded as competition, but low-end smart watches will present a comparable threat.
Companies like Fossil and Rotary are right in the middle of the Goldilocks area for threats from Apple Watch; not too cheap and not too expensive, not throwaway but not collectable either.
Supposedly, AppleWatch was considered a failure right from the start and it’s still being said that AppleWatch sales are terrible. It’s a real headscratcher when it comes to opinions and reality.
I love watches and own several. I have not worn another watch since I received my Apple Watch as a gift two years ago. Even when going to “fancy” events I usually “want” to put on one of my “nice” ones but realize that is when I need my Apple Watch the most. I have my phone on silent, can’t check my messages, and am often following maps for directions to a restaurant or event I’ve not been to before. 99% of folks who start using an Apple Watch won’t take them off – EVER.
IIn other words, your a slave to it. C’mon, admit it.
I don’t know what market apple is killing… but absolutely not the european and i would bet not the asian!
I am an Mac and iOS user and the Apple Watch in its courrent form and price is NOT for me. I use a Fossil Q Founder v 2.0 and after upgrading to Android wear 2, it feels like a whole new product. The QF looks and feels like a real whatch and not like a health device for nerds or a panic button for elderly.
Haven’t worn any watch in years. Don’t need to. There’s a clock on every Mac, PC, iPad, tablet, iPhone, smartphone within inches. A watch is redundant. Apple Watch is merely an Apple fanboy identity bracelet.