Apple Inc. (NASDAQ:AAPL) was not selling as many watches around the middle of the year raising some serious concerns. But the business seems to have rebounded since then, thanks to their most recent redesigns, strong promotions, and price cuts.
The watch is an important product for the business. It is the first new product under Tim Cook, the Chief Executive Officer. Many see its success as a pointer on whether Apple is able to find new revenue sources, or will they have to keep depending on the iPhone sales. The figures so far seem to be good news.
On Monday, Cook revealed that sell-through, which measures how many watches the actual consumers are using, and are not just stocked in the shelves with retailers have reached a new high during the holiday shopping’s first week.
Market Reports Had Predicted Poor Sales of the Apple Watch
This is in stark contrast to the tech research firm IDC’s earlier reports that the sales of Apple watches have plummeted by a staggering 71 percent in the third quarter of this year. But that report was not the only one. Slice Intelligence also came out with a second report that claimed that the demand for Apple watches may not be as much as their iPad’s and iPhone’s. That was in last July.
Tim Cook refuted all these claims, saying, “Apple watch sales are better than ever”. But some analysts are still not confident. An analyst with BGC Partners, Colin Gillis said, “Let’s see if the demand carries through to the next quarter”. They are saying that it is just a spike in the sales because of the holiday sales. But Apple points out that the sales have been going up since early November.
What Has Apple Done to Boost the Phone’s Sales?
Quite a bit actually! When the watch was first introduced in 2015, its starting price was $349. But this year in March the price was dropped to $299, and again to $269 in September while releasing their latest generation of watches.
Apple (NASDAQ:AAPL) has also improved the profile of their watch for the holiday season. The company carried out aggressive marketing after signing a promotional deal with Nike. Researcher Market Track says that last year the wearables market was 6 percent. This year it is 14 percent.
Apple watches are available now with third-party retailers as well like Best Buy and Target, and not just from the company’s own stores. That too has contributed towards the growing sales.