The sales of Apple Watch, the tech giant's first foray into the lucrative wearables market, has been closely monitored by market watchers. And the latest reports are in, which are in fact, a lot better than mere encouraging. Apparently, Apple Watch are a hit this Holiday shopping season and selling like hotcakes.
And it may have a lot to do with well-timed Apple Watch price cuts and promotions. A lot are riding on the sales performance of Apple's first wearables, including company CEO Tim Cook.
Incidentally, the Apple Watch, aside from the company's first offering in the wearables department, is also Tim Cook's first major product, reports CNBC. As such, its sales are under a lot of scrutiny, especially from the investing community, as it is a litmus test for both its CEO as well as Apple's ability to look for other sources of income, as many are worried that the company's performance may be too dangerously dependent on iPhone sales alone.
While the latest holiday season surge in Apple Watch sale is indeed an encouraging sign, many are still cautious about its long-term prospects. Apparently, sales of the wearable has been generally slumping this year and has actually experienced a significant 71 percent drop in its third quarter figures this year. What Apple needs is a long-term uptick on its first wearable but it still remains to be seen if the Apple Watch can sustain the trend in the long term.
Competition of the wearables segment is now heating up and has once more claimed another casualty. Wearable manufacturer Pebbles is announcing that it will be shutting down, a move that was most likely caused by the entry of big league players like the Apple Watch, reports Venture Beat.
Previously, Pebble CEO Eric Migicovsky hailed Apple's entry via its Apple Watch as a confirmation that there is money to be made in the segment implying that the increased competition is no cause for concern. However, it now appears that Migicovsky might have been overly optimistic in his previous assessment as the company has now announced that it will cease its operation. Some Pebble employees are reported to be transferring to Fitbit, another wearable manufacturing company that is faring way better than Pebbles.
For now, analysts are still observing if Apple Watch price cuts will be sufficient to sustain its demands in view of the lower-priced models from its competitors. Stay tuned to GamenGuide for the latest tech news.