KGI also bearish on the Apple Watch in 2016
Another investment note and again, we’re turning to Ming-Chi Kuo from KGI for this one. The analyst already forecast a pretty mild year for iPhone SE sales — unlike another analyst from RBC Capital Markets — and is looking at another poor go of it with the iPhone 7.
Kuo now expects for the Apple Watch to turn sales below 7.5 million units. As the company decided against another iteration this spring, Apple may as well do worse than the 10.6 million Apple Watch sales it made in eight months of 2015.
Kuo himself believes that the entire smartwatch market has yet to see patterned consumer behaviors. He also says that the Apple Watch itself feels like a beta product — no heavy-use apps, no heavy-duty battery life and all of it having to be tethered to the iPhone.
KGI believes that Apple will prepare factories to build an “S”-style iteration of the Apple Watch by this upcoming third quarter for sales next year. If the company’s designers do a better job than they did with the original watch, sales could pick right back up.