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Apple Inc. (AAPL) “Failure” Watch Sales Hit 4m Says Strategy Analytics

Apple Inc NASDAQ:AAPL watch and iphone package deal

Apple Inc. Watch has dominated the global smartwatch sales finds a new survey. Since the debut Apple sold over 4m units of the watch, says a new report from Strategy Analytics.

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Samsung losing, Apple gaining

Analysts and experts have all been guessing the watch sales number as Apple has not provided any detail of the sales of the gadget. But Strategy Analytics now says the firm sold 4m units accounting for 75% of the total smartwatch sales in the last quarter.

The survey found that Apple’s gain in the watch segment has come at the expense of its long-time Korean rival Samsung, whose share has come down sharply from 75% in the Q2 2014 to just 7.5% in Q2 2015. For Samsung, the units sold dropped from 0.7m in the Q2 2014 to 0.4m in the Q2 2015.

Apart from Apple  and Samsung, other watch makers have been put in the ‘others’ segment. For ‘others,’ the market share climbed to over 26% from 17% last year while the number of units sold jumped 0.9m from 0.3m, reports Strategy Analytics.

Analyst’s guessing actual sales number

Since its debut, Apple Watch estimates have alternately showed as a massive successor a  complete failure. Though Apple CEO Tim Cook gave no watch sales figures, it has not stopped analysts from guessing. Despite coming from the experts, the numbers from analysts are all over the place.

John Brandon over at Inc.com says that the Apple Watch is a failure that reminds him of the Apple Newton. We won’t know for sure until the real sales numbers emerge, but Wall Street isn’t helping the world get an accurate picture of sales.

A couple of weeks back, Fortune compiled a list of 27 analyst estimates, showing the difference in the opinion when it comes to Apple Watch. Though the average of all the estimates is reasonable at 4.07m units, the difference between the highest and the lowest is something to look at.

Jefferies estimated Apple to have sold 5.70m units, which is the highest estimate while the lowest guess is of 2.85m units. Though the lowest estimate comes from a rookie analyst, numbers from veterans such as Piper Jaffray, Oppenheimer, Canaccord and Credit Suisse are all near 3m units.

During the earnings call, Cook hinted the watch sales “exceeded expectations,” adding “We feel really great about how we did.” Cook said the first nine weeks sales for the watch were higher than the sales of the first iPad and the iPhone, when they first became available for sale. Suggesting the reports of falling demand as inaccurate, the CEO said June sales were more than that of April or May.

Despite the assurance from Cook of strong demand for the watch, estimates for the watch will keep on coming unless Apple comes out with the actual sales number.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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