Survey results: Apple Watch owners making health a priority

31 Jul 2015 | Author: | No comments yet »

Apple Inc. (AAPL) “Failure” Watch Sales Hit 4m Says Strategy Analytics.

The arrival of smartwatches was supposed to spell the end of dedicated fitness bands with Gartner predicting that ‘half the people who would have bought a fitness wristband will buy a smartwatch instead.’ However, the lukewarm reception to the army of Android Wear powered smartwatches has meant that it’s now over to Apple to prove that smartwatches can indeed serve as an adequate Fitbit replacement.

Apple did not break out Apple Watch sales in its latest earning report, but Strategy Analytics, which pegs Apple Watch sales at 4 million units, said Apple accounted for more than 75 percent of global smartwatch sales in the past quarter, according to the study.In less than half a year since the debut of its first wearable Apple Inc. (NASDAQ:AAPL) Watch, California-based Apple Inc. (NASDAQ:AAPL) has dethroned Samsung Electronics as the king in the global smartwatch industry.The closest clue to actual Watch sales is through Apple’s “Other Products” category, which includes the Apple Watch as well as Apple TV, iPods, Beats headphones and accessories.“We had an wonderful quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch”, said Cook. Apple’s dominance in the smartwatch segment comes at the expense of Samsung, who went from 74 percent market share in second quarter of 2014 to 7.5 percent a year later quarter.

Revenue in the category jumped 49 percent year over year to more than $2.6 billion, and Cook suggested that the watch’s contributions were even greater as sales of other products such as the iPod had declined. In a quarterly earnings report released late Tuesday, Apple folded smartwatch revenues into an “other” category that included money made from sales of accessories such as Beats headphones. In order to gain traction for the digital watch, Apple is also trying to ramp up its marketing efforts by deciding to sell the smartwatch at Best Buy shops across the U.S., a move aimed at boost sales by diversifying its sales channels. Apple was getting bruised Wednesday despite its earnings report showing soaring profits as investors appear spooked by its lukewarm outlook and uncertainty over sales of its smartwatch. First up is the three-axis accelerometer that essentially acts as the pedometer, measuring your steps and body movement to calculate calories burned from your daily activities.

The Gear A, expected to sport head-turning features such as a round-face display, a rotating bezel and wireless charging, is rumored to be lined up for display along with the tech giant’s two new flagship smartphones — the Galaxy Note 5 and the Galaxy S6 Edge Plus — at an unveiling event in New York on Aug. 13. It has been reported that in the second quarter, about three of every four smartwatches sold globally were Apple watches. “We don’t intend to provide insight that could help our competitors”, said senior vice president and chief financial officer Luca Maestri on the call.

News.com reports, that Canaccord Genuity analyst Michael Walkley estimates that during the first three months of 2015, Apple reaped 92 percent of the $US16.6 billion in operating profit generated from smartphones by companies around the world. The optical heart rate sensor, located on the underside of the watch face, detects your heart rate during workouts and functions in a similar fashion to what you would find on other fitness bands. The company forecast revenue of $49 billion to $51 billion, missing analysts’ average estimate of $51.13 billion, according to a consensus estimate from Thomson Reuters.

Neil Mawston, dxecutive director at Strategy Analytics, added: “We estimate Apple Watch shipped 4.0 million units and captured a dominant 75 percent smartwatch marketshare worldwide in Q2 2015″. For ‘others,’ the market share climbed to over 26% from 17% last year while the number of units sold jumped 0.9m from 0.3m, reports Strategy Analytics. As for Apple’s world domination, the company remains pretty popular outside the US with global sales comprising of 56 per cent of its revenue during the third quarter. Apple claims that the Watch even uses the barometer in the iPhone 6 to determine whether you’re cruising downhill on a bike or gruelling it out uphill, for instance, to more accurately calculate how many calories you’re actually burning.

Unveiling the G Watch Urbane in March at a mobile trade show in Barcelona, Spain, chief executive of LG’s mobile business unit Cho Ju-no said that the wearables are still in its infancy and need to take another big leap on the hardware front — including size, weight, and battery — to be more widely adopted by consumers, hinting the company was working on more advanced wearables to be released next year. Traditional watchmakers and some luxury fashion brands such as Swatch, Montblanc and Casio are making forays into the new field riding on the back of their brand recognition in the traditional watch market. However, the lack of on-board GPS means that you have to carry your iPhone with you if you want to map your runs or the most accurate fitness tracking data.

He also offered a glimpse into what the first smart timepiece would look like, announcing that the upcoming product would feature an NFC chip and a mobile payment solution. Montblanc has rolled out a unique electronic watchband, called the e-Strap, which can transform the firm’s regular watches into ones that can be connected to smartphones.

Even if you do run with your iPhone, neither of Apple’s Workout or Activity apps are capable of showing you maps of courses you have run or other running metrics like cadence or splits. Apple Inc. (Apple), incorporated on January 3, 1977, designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, peripherals, networking solutions and third-party digital content and applications. Though the lowest estimate comes from a rookie analyst, numbers from veterans such as Piper Jaffray, Oppenheimer, Canaccord and Credit Suisse are all near 3m units. During the earnings call, Cook hinted the watch sales “exceeded expectations,” adding “We feel really great about how we did.” Cook said the first nine weeks sales for the watch were higher than the sales of the first iPad and the iPhone, when they first became available for sale.

In addition, the Company offers its own software products, including iOS, the Company’s mobile operating system; OS X, the Company’s Mac operating system; and server and application software. These issues should be rectified with the release of Watch OS 2 later this year where Apple is promising support for native third party apps but until then most are likely to stick with Apple’s overly-basic Workout app. The Company’s primary products include iPhone, iPad, Mac, iPod, iTunes, Mac App Store, iCloud, Operating System Software, Application Software and Other Application Software. iPhone combines a mobile phone, an iPod and an Internet communications device in a single handheld product.

You can set the workout goal to be based on duration, calories burned, distance ran or have an open goal and the nice thing is that it will show you what your previous best was for a little extra motivation. In addition to the Company’s own iPad accessories, third-party iPad compatible accessories are available through the Company’s online and retail stores and from third parties. The Watch picks up the heart rate fairly accurately in between sets where you’re able to rest and your heart is able to push blood through those muscles again but the up and down readings ultimately mean that the recorded fitness data is not as accurate as it could be. Pairing the Watch with a Bluetooth chest strap like the Polar H7 for heart tracking duties is definitely recommended if your fitness regimen involves regular strength training exercises. The Watch can handle up to 2GB worth of music from iTunes but unfortunately there isn’t any way to transfer tracks from popular streaming services like Spotify for offline play on the Watch.

The Watch does offer plenty of encouragement to reach your daily move, exercise and stand goals with reminders and progress updates that chime in throughout the day along with achievement badges for when you crack milestones and personal bests. The iPod nano is a flash-memory-based iPod that features the Company’s Multi-Touch interface allowing customers to navigate their music collection by tapping or swiping the display and built-in Bluetooth for wireless listening. Seasoned runners should take a look at the Mio Alpha 2 which offers an EKG level heart rate monitor with an indicator light that flashes different colours to tell you at a glance your current heart rate zone. Application Software iLife is the Company’s consumer-oriented digital lifestyle application suite included with all Mac computers. iLife features iPhoto, iMovie, iDigital Versatile Disc (DVD), GarageBand and iWeb. iPhoto is the Company’s consumer-oriented digital photo application and iMovie is the Company’s consumer-oriented digital video editing software application. iDVD is the Company’s consumer-oriented software application that enables customers to turn iMovie files, QuickTime files and digital pictures into interactive DVDs.

The Company also sells a range of Apple-branded and third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras and various other computing products and supplies.

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