Wednesday, April 24, 2019

Will Apple benefit from a halo effect?


Apple is likely to boost production of the Apple Watch after strong pre-orders outstripped limited supply, analysts said yesterday. The tech giant‘s latest product became available to pre-order on 10 April and initial Apple Watch pre-order numbers have been coming in. Data from measurement company Slice suggests that nearly 1m customers pre-ordered the device in the US alone.

Apple’s website lists shipping times in June for some models, and four to six weeks for others, hinting that the company is struggling to meet demand for Tim Cook‘s first new major product.

According to Reuters, analysts are predicting that Apple could sell between 2.3m and 4m watches in the quarter ending June but Gene Munster, an Analyst at Piper Jaffray, said this may not happen this time because of the supply issue.

“Overall we view the trends over the weekend as an indication of solid demand paired with very limited supply, with supply being the most significant limiting factor,” Munster said in a client note.

He predicts that Apple will sell 2.3m watches in the April – June quarter and expects the retailer to ramp up production between mid-May and June.

The watch, Apple‘s first venture into the personal luxury-goods market, allows users to check emails, listen to music and make phone calls when paired with an iPhone. In data released yesterday, the Apple Watch Sport proved to be the most popular of the range.

With Apple‘s customers better described as fans, it is likely the Apple Watch will be an addition to fans‘ growing portfolios of Apple products. The success rate of the Watch and Apple‘s other products (such as the iPhone 6) could help increase the sales of Apple‘s new notebook, the release date for which is yet to be announced.

The Apple Watch range officially goes on sale on 24 April.


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