High level of satisfaction found among Apple Watch owners: Survey

21 Jul 2015 | Author: | No comments yet »

Apple Earnings: What to Watch.

Analysts expect another powerhouse performance from the California tech giant when it reports quarterly financial results Tuesday. so far Apple has not released sales figures for the Watch, leading to wildly varying estimates from analysts, with some branding it a flop with sales under 3 million. ‘If we take a look at how the Apple Watch customer satisfaction rating compares to the first generation of the iPad and the iPhone, we see the Apple Watch has the highest customer satisfaction rating of any previous version one Apple product, the team wrote. ‘Given the current customer satisfaction of the iPhone is at 99%, the first version of the Apple Watch ranks closer to the current generation iPhone than the first generation iPhone or iPad in terms of satisfaction.’ ‘Those whose job it was to think about the Apple Watch or who were early adopters who thought deeply about tech and the tech products they buy, were all much more critical of the watch. ‘These groups of people couldn’t stop raving about the Apple Watch and how much they loved the product.The iconic device maker will announce earnings, and is expected to have higher iPhone sales than the same time a year ago, showing growth in an 8-year-old category. Wall Street analysts estimate Apple will report a hefty $10.3 billion in profit after selling $49 billion worth of iPhones, iPads, Mac computers and other products during the April-June quarter. These colour options are also expected to be released with the tech giant’s next iPhone handset, meaning customers will be able to match their Watch to their phone.

Thought-leaders from the biggest brands and most disruptive companies will share winning growth strategies on the most pressing challenges marketing leaders face today. Techpinions analyst Ben Bajarin joined forces with Apple Watch research platform Wristly to survey Apple Watch owners and found that 97 percent are satisfied with the watch, which is higher than the percentage of original iPad and iPhone buyers who were happy after those respective launches.

Mr Chi-Kuo did not give an indication to how much a gold-plated Sport model would cost, but it is likely to offer a price point between the current Sport and Watch. At my estimate of $50.4 billion Apple would generate its highest revenue growth rate (34.6%) since the March 2012 quarter (58.9%) and this is with significant currency headwinds. But it almost doesn’t matter: As in other recent quarters, Apple will reap its biggest rewards from its smartphones, especially the new, big-screen iPhone 6 and 6 Plus models introduced last fall. The article, called “Apple Waits as App Developers Study Who’s Buying Its Watch,” suggests that marquee app developers like Facebook and Snapchat lack confidence in the Watch as a platform that consumers will eventually swarm to. —ALL ABOUT IPHONE: The iPhone accounted for nearly 70% of Apple’s revenue in the previous quarter and is the company’s most profitable hardware product.

Part of the reason those 20 apps are at the top of the list of iPhone apps is that they work very well on the screen of an iPhone, as opposed to on some other screen. While design and quality satisfaction rates are high, performance and battery only scored a 28 percent satisfaction rating, and ease of use clocked in at 43 percent (though women were more pleased with ease of use than men). Some consumers were drawn to Android devices in recent years because they had bigger screens, but Apple’s decision to increase the iPhone’s screen size is persuading Android owners to defect, said Ryan Reith, who tracks smartphone sales for the research firm IDC.

If you assume that the Watch’s average selling price (ASP) is $550 each million unit swing adds or subtracts $550 million in revenue and $0.02 in EPS if you assume a 35% gross margin. Apple likely sold about 47 million iPhones during the most recent quarter, or 34 per cent more than a year earlier, according to analysts polled by FactSet. While Apple doesn’t break out the numbers, Canaccord Genuity analyst Michael Walkley estimates that during the first three months of 2015, Apple reaped 92 per cent of the $16.6 billion in operating profit generated from smartphones by companies around the world. Other companies’ apps will be popular among Watch users and less so among iPhone users, and vice versa. “This is a story about developers trying to figure out if they want to be on a new platform, and if they do, how best to accomplish that.

It has not generated the type of frantic excitement from consumers on par with the iPad or iPhone, leading to speculation that the product is off to a disappointing start. Unfortunately, Chen’s story makes it seem like the development community is just holding its breath waiting to see if Apple’s selling watches, while users are similarly waiting to see if their favorite apps from their phones run on the watch before buying.” “Calling it a problem that many popular phone apps aren’t on the watch makes as much sense as calling it a problem that the iPhone, circa 2008, didn’t have the most popular apps from the desktop, like Microsoft Office or Photoshop. (And after a few years, versions of those apps did make their way to the iPhone.)” Apple is set to announce its quarterly earnings Tuesday afternoon, and analysts are expecting the company to reveal some actual sales numbers. When you compare sell through results this would mean Apple would experience a 14% decline q/q vs. 13% two years ago and 19% last year. iPhones should drop from 69% of total revenue the past two quarters to about 64% which will hurt gross margins to a small degree.

Samsung sold more phones than Apple during that period, but many of them were lower-priced models, giving Samsung only about 15 percent of the industry’s operating profits, according to Walkley. The most notable omission: Facebook. “It takes time for a paradigm shift with developers,” Munster says. “They’re going to have to shift from a `mobile first’ mentality to `wearables first.’” Many are waiting for the next edition.

Katy Huberty at Morgan Stanley is using 50 million in her model with upside from her Alpha Wise tracker, Ming-Chi Kuo from KGI is forecasting 54.2 million and Steve Milunovich from UBS is at 51 million (which includes 1 million channel fill). Microsoft, meanwhile, is cutting 7,600 jobs and writing down the value of its Nokia phone division by $7.6 billion, essentially acknowledging that its effort to build a business selling Windows smartphones had failed. Since iPhone sales should be down by about 10 million units quarter to quarter the strength in China should help offset typical seasonality in other markets. More from WSJ.D: And make sure to visit WSJ.D for all of our news, personal tech coverage, analysis and more, and add our XML feed to your favorite reader. They should come down when the 6s and 6s Plus are announced since I think it would be a huge surprise and a demand killer if the new iPhones are priced higher then the current ones.

While the iPhone’s margin is helped by moving along the experience curve and lower component costs since it will be a lower percentage of revenue this limits its benefit. Instead, Apple will lump revenue from the watch into its “Other Products” category, which includes the iPod media player, Apple TV streaming device and Beats headphones.

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