In a note to clients — as noted by Business Insider — KGI Securities analyst Ming-Chi Kuo says Apple could sell fewer Apple Watches in 2016 than it did in 2015. His projection for 2016 Apple Watch shipments have been cut 15-25%.
"Based on these considerations, we revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015)," writes Kuo. "We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months).”
He says the four main problems affecting Apple Watch sales are: a lack of killer apps; inadequate battery life; heavy reliance on an iPhone; and the likelihood that multi-touch will not be the best user interface solution for wearable devices.