Apple Inc. just got great news about the Apple Watch as the results of a survey show that buyers are spending above the top analysts’ estimate to buy the device. Reuters report that the average selling price of the Apple Watch is $529, which is above the analysts’ estimate of $450. However, Apple might still be miles away from realizing the full potential of the new product category of the Apple Watch as another survey shows that would-be buyers are waiting for the second generation Apple Watch.
The Reuters report about the $529 average selling price for the Apple Watch uses data from the result of a survey conducted by Wristly. Wristly has surveyed more than 2,200 Apple Watch owners since March when the device was launched. Wristly admits that its survey “only reflect buyers in North America, Europe and Oceania, and the panel skews to the wealthy”. However, Wristly founder, Bernard Desarnauts says the result of the survey can provide Apple with “quite a positive uplift”.
Apple Watch is beating analysts’ estimates
The Apple Watch does have a wide disparity in the price of its different models. The sport model starts out at around $350 while solid gold models could set you back some $17,000. At the launch of the device, analysts placed its selling price between $425 and $550. However, barely three months later, the analysts reviewed their position and they lowered the average selling price of the device to $450.
Leading the charge for a weak sales of the Apple Watch were analysts at Pacific Crest led by Andy Hargreaves. Andy opines that the demand for the device seems to have come down sharply from the initial levels. He went on to lower the F2015 estimate to 10.5M units from 11M units while he slashed the FY2016 estimate from 24M to 21M units. The fact that Apple made a somewhat “desperate” move to start selling the device in Best Buy stores also weakened the sales outlook.
Apple Watch might be an ugly duckling
However, the recent data from Wristly shows that the Apple Watch is beating the analyst’ sales expectations. Apple has a real need to open up a solid revenue stream apart from its iPhone lines but the market doesn’t really expect the Apple Watch to do the trick.
However, if the device goes on to defy expectations; it might help Apple boost its investor confidence. Analyst Daniel Ives of FBR Capital Markets suggest that the Apple Watch might turn out to be the ugly duckling for Apple . In His words, “At this point it’s not moving the needle, but it could have a slightly positive impact in fiscal year 2016 as sales start to ramp up.”