“Apple has asked its suppliers in Asia to make a combined five to six million units of its three Apple Watch models during the first quarter ahead of the product’s release in April, according to people familiar with the matter,” Lorraine Luk and Daisuke Wakabayashi report for The Wall Street Journal.
“Half of the first-quarter production order is earmarked for the entry-level Apple Watch Sport model [which starts at US$349], while the mid-tied Apple Watch is expected to account for one-third of output, one of these people said,” Luk and Wakabayashi report. “Orders for Apple Watch Edition – the high-end model featuring 18-karat gold casing – are relatively small in the first quarter but Apple plans to start producing more than one million units per month in the second quarter, the person said.”
Luk and Wakabayashi report, “Analysts expect demand for the high-end watches to be strong in China where Apple’s sales are booming.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Far from enough.
Yet even just five million Appe Watches is more than twice more than all of Android Wear and Pebbles sold to date for years in quantity, and like five-six time bigger in revenue.
For millions of Mac users, $349 is considered “chunk change.”
Or chump change… 🙂
Wonder how hard it will be to get the high end watches, will they be in short supply?
Time well tell.
I’m sure plenty of the AppleWatch Edition models will be available on eBay for twice the price Apple is charging.
Oh no.
You wont be able to get near the Apple Store for the ranks of Chinese mules.
I’ll preorder as soon as I can. Going for the cheapest version in the larger size. I hope I can get a good resale value when I upgrade to the next version when it comes out.
I have to admit, this is one product from Apple that I have been very excited about. It’s been a long time since that has happened. I upgrade my iPhone as often as I can, but the excitement is no longer there; I don’t wait in lines for them anymore.
I heard a rumour about the Apple Watch only being available in-store, not online (at least initially). I’m very much hoping this rumour isn’t true, as I’m also excited to get my hands on an Apple Watch as soon as its released. I’ve been there and done the queuing up many times. I much prefer to order through the Apple Store app, or wander into queue-less Apple Store for the item. Will find out soon…
I hope the watch won’t only be available in Apple Stores. I don’t have anything against buying at the store, per se, but the nearest one is about a hundred mile round trip through traffic. Online would be much easier – and less crowded.
Apple has a unique opportunity to suppress the “gray market” here, and greatly reduce the abuse so that more “real” customers can get an Apple Watch without waiting.
Since an Apple Watch requires an iPhone, all actual Apple Watch users already own an iPhone (5 or later), or they will buy a new iPhone and Apple Watch together. Therefore, during the initial release (until supply catches up with demand), set up a system so that a customer can only order an Apple Watch from a compatible iPhone, through the online Apple Store App. Only one Apple Watch order per Apple ID.
The exception is if the customer is buying an iPhone and Apple Watch together. For that order, the regular online or physical Apple Store can be used. If Apple Watch is “out of stock,” iPhone is provided immediately, with Apple Watch following later when available.
Customers can have their order shipped to a delivery address, or picked up as a personalized order at a physical Apple Store. No lines (except for pickup). No (or minimal) “mules.” Once supply catches up with demand, these restriction can be lifted.
Just make ordering or buying linked to a valid Credit Card or bank card. Most of those buying for resale in China were paying cash – given by gang masters hiding around the corner.
Apple sold about 75 million iPhones during the last reported quarter. That’s 75 million iPhones that work with Apple Watch, sold in just ONE quarter. So, if only 10% of those iPhone customers (from just one quarter) buys an Apple Watch, Apple sells seven-and-a-half MILLION.
There were supply constraints for iPhone 6 and 6 Plus during that quarter, so this current quarter is also big for iPhone (as supply catches up to demand). And THEN add iPhones (5 and later) sold during previous quarters, going back more than TWO YEARS. I don’t know what that total number of potential Apple Watch customers is… But most Apple Watch sales predictions I’ve seen from “experts” are under 30 million; that number is probably well under 10% of potential Apple Watch customers, at the time of Apple Watch release.
These potential Apple Watch customers are NOT random people. They are already happy and enthusiastic Apple customers, who have purchase (at least) one iPhone. For this group, Apple Watch is an easy sale. Much more than 10% will say “Yes” to Apple Watch. Those 5 million Apple Watches from the first production run will be (mostly) gone by the end of the first weekend of sales.
I’m concerned about the rumors of Apple dropping advanced sensors. That’s basically the whole purpose of my intentions of purchasing an AppleWatch. I hope those rumors are simply FUD-spreading.
I believe an initial production run of five million makes perfect sense. As the anti-Apple pundits always say, “Apple only builds enough product to produce waiting periods to build up the media hype.” When the media hears Apple selling out the AppleWatch in a month, that will really get the media juices flowing.
So you are buying an Watch primarily on a rumor that Apple is dropping advanced sensors?
I would rather listen to what the Apple pundits say! Rather than the BS rumors.
The “pundits ” are spreading the “BS.”
Baseless news!
We’re getting two. I’m sure of it.
And the news-analysts headlines: “Apple only sells 5 million on the first run! Apple is Doomed!”