New Apple Watch ‘Apps At A Tap’ Ads Focus On Music, Fitness, And Travel

28 Jul 2015 | Author: | No comments yet »

Apple Watch to go on sale at Best Buy in August.

Since the turn of the century, Apple had one blockbuster hit after another and could do no wrong, the rare company that told consumers what they wanted to buy instead of the other way around.Those seeking the Apple Watch Edition, with a minimum price of $10,000, won’t find this high-end line at Best Buy when the cheaper versions go on sale Aug. 7.

Although CEO Tim Cook said during an earnings call last week that Apple Watch sales were exceeding expectations, there has been much skepticism about the device as the company’s first invention without co-founder Steve Jobs. But Bernstein Research analyst Toni Sacconaghi said Best Buy’s coming aboard as a retail partner was no act of desperation but, rather, a page from an Apple playbook tested with the iPod and the iPhone.

Apple has yet to reveal how many watches it has sold and claims it may never, for “competitive reasons.” Some analysts have speculated that the company is reluctant to announce a number that may disappoint investors. Apple’s still on track to ship 15.4 million watches this year, according to Strategy Analytics, adding that 4 million units were shipped in the first quarter alone. “I’m surprised by how fast they got the ball rolling,” said Strategy Analytics’ Cliff Raskind. “But now that they’re on the move, the watch’s availability should snowball to other key retailers and other key geographies by the end of the year.” Apple had its biggest tumble in 18 months, after its 3Q earnings report disappointed investors last week, as iPhone sales fell beneath analyst expectations. Together with its website and international stores, Apple generated about $21.5 billion in retail sales last year, or just 12 percent of total revenue, according to the company’s annual report. Before the Internet and Amazon, Best Buy enjoyed considerable leverage over manufacturers like Apple and Sony because of the company’s status as the world’s largest consumer electronics retailer.

As a result, Best Buy tended to see its suppliers not as partners but rather as opportunities to generate more profits by constantly pressuring them to lower prices. But in the end, our relationship with them would be adversarial.” By 2001, Best Buy was now competing against its largest vendor — and it seemed like Apple was winning. Apple, along with Samsung, Hewlett-Packard, Sony and LG Electronics, represent approximately 47 percent of all of Best Buy’s merchandise, according to documents filed with the Securities and Exchange Commission.

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