Apple Inc. (NASDAQ:AAPL) shares were falling in this morning’s pre-market even as the company’s latest product, the Apple Watch, was selling out across the world. At time of writing the firm’s shares had lost 0.48% of their value and were set to open for the day at $125.95.
Those numbers may change before the market opens, of course, but it seems that investors either don’t believe the many stories portraying a sellout of the Watch across the globe, or else they already had a quick sellout priced in. There are, of course, reasons other than strong demand that could cause the estimated delivery date to slip back quickly.
Apple Watch sellouts confirmed
According to reports published in the early hours of this morning, the most expensive gold version of the Apple Watch Edition sold out in China this morning in less than an hour. That’s the most dramatic piece of evidence pointing to strong demand for the Apple Watch, but the wearable device appears to be performing incredibly well across the board.
According to MacRumors writer Juli Clover, estimated delivery times for the Apple Watch have been lengthening drastically all morning, and began to do so almost instantly after the device was put on sale. Most of the models of the Apple Watch were said to be not available until June at time of writing.
The Apple Watch Edition Rose Gold appears to have proved the most popular, or the most difficult to get a hold of at any rate. The device isn’t going to be available for delivery until July, and that’s if it is purchased right now. As the east coast of the United States eats breakfast and fires up the Apple store that estimate delivery date may get further and further away.
Apple Watch may be in short supply
Though it’s clear that the Apple Watch is selling out, it’s not clear how many of them have been ordered since the pre-order mechanism opened this morning. It is possible that Apple isn’t actually selling an outsized number of watches but that the first production run of the wearable did not produce a high yield.
Gene Munster, a financial analyst from Piper Jaffray, argued recently that production problems are likely to be a major limiter on the number of units of the Apple Watch available at launch. He says he’s looking for the Cupertino company to sell 1 million Watches by the end of its first weekend and 8 million total in 2015.
Apple may not have enough units of the Apple Watch to go around, and that could be causing the sellouts seen this morning. The device isn’t due to be delivered until April 24, but it seems that there will be almost none of the devices left to get a hold of by that date.
What are investors looking for?
Apple will likely give a good insight into its watch sales on April 27 when it releases its earnings for the first three months of 2015. The company’s earnings report won’t contain any Watch sales, but Time Cook will probably let the world know just how the device is doing. With shares down this morning, however, it’s difficult to model what shareholders are looking for from Cupertino.
You can find a round-up of the objectives of each of the many Wall Street analysts covering the release at this link. Trying to figure out what investors are looking for beyond that is a much more difficult challenge.