Will the Apple Watch be a hit?

21 Jul 2015 | Author: | No comments yet »

Apple Earnings: What to Watch.

When Apple’s quarterly numbers come out, it will report revenues, profits, earnings per share, gross margins, guidance and — perhaps most important of them all — how many iPhones it sold. 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.

Instead, analysts will have to dig for that information in the “other products” category, where Beats headphones, Apple TV, and accessories also live. 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. Apple’s signature iPhones remain popular, even as other smartphone makers are seeing demand slow down. (AP/Tony Avelar) Analysts expect another powerhouse performance from the California tech giant when it reports quarterly financial results Tuesday. 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. 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. 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. In short, whatever numbers are out there won’t be official or even exact — or, crucially, subject to questioning by analysts and reporters during the earnings call. 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.

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). Apple watchers will say the company doesn’t want the market to know just how badly its first new product created after Steve Jobs’ passing has failed. Research firm Slice Intelligence laid the groundwork for this particular storyline last week in a report that suggested orders for Apple Watch dropped 90 percent since the device’s debut.

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. Apple likely sold about 47 million iPhones during the most recent quarter, or 34 percent more than a year earlier, according to analysts polled by FactSet. 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.

At an average selling price of more than $600, before carrier subsidies, Apple’s phones are more expensive than many competing Android models, but they also provide more profit. 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.

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 percent of the $16.6 billion in operating profit generated from smartphones by companies around the world. 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.

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. 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. 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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