“A cautious note this morning from Steve Milunovich of UBS, who writes that his perusal of online mentions suggests people are not very interested in the recently released Apple Watch,” Tiernan Ray reports for Baron’s.
“Writes Milunovich, ‘Search interest has deviated lower relative to an index of 30 consumer electronics introductions and the first iPad and iPhone releases—the week of launch, the Watch is about 20% of iPad and iPhone interest,'” Ray reports. “Moreover, ‘We now think about 7% rather than 10% of the expected iPhone 5/6 average installed base of 430mn in F16E is likely to buy a Watch.'”
Ray reports, “Still, Milunovich insists it is ‘just the first inning,’ writing that ‘We are long-term bullish on the Watch as the interface to the Internet of Things; the wrist is a natural place to put Apple technology.'”
Apple has somewhat botched the Watch introduction. First “early” in the year was defined to include April. Then supply issues pushed back availability for most early buyers. The buzz has been reduced by requiring appointments and by the inability for now to take Watches home from Apple stores. However, Apple is right to go slowly as the Watch represents a new category. Word of mouth will be important, so training users is needed. — Steve Milunovich, UBS analyst
Read more in the full article here.
MacDailyNews Take: Yes, Apple botched the Apple Watch launch. Supply chain issues happen. Miscalculations happen. It’ll all work out by summer.
And Joe and Jane Six Pack don’t yet understand the Watch. It has to be worn to be understood, appreciated, and therefore wanted by the average person.
