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11/21/2024 11:27:08 am

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Apple Watch Could Reach 2.5 Million Pre-Orders

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(Photo : Reuters) The Apple Watch could hit over 2.5 million pre-orders before April 24.

The Apple Watch could secure 2.3 million pre-orders, at least according to KGI Securities analyst Ming-Chi Kuo, who is normally well informed when it comes to Apple products.

Apple Watch Sport should take the lion's share of the sales with 85 percent followed by the Apple Watch with 15 percent and the Apple Watch Edition with one percent. Currently, it looks like customers are paying $382 on average for the sport edition while paying $707 on average for the Apple Watch.

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It would fit with the current trajectory after Apple managed to sell one million units in 24 hours in the U.S. alone. Given it's already available in several other prominent countries, we expect it could easily break 2.3 million sales -- and potentially reach 2.5 million before April 24.

Kuo claims Apple will have troubles manufacturing all of these units given supply constraints from Taptic Engine supplier AAC and display supplier LG Display. Apple has precise requirements that need to be met but these are proving tricky as suppliers work against poor yield rates and testing issues.

Even if it only manages two million sales, that will still be one million more than Android Wear managed to make in half a year. Apple's early success is incredible considering the wearable industry has only sold four million units in the second half of 2014.

Analysts predict with the launch of the Apple Watch, we'll see a massive shift in sales in the wearable market, moving from 19 million to 45 million in 2015. That could hit 100 million by 2019 but it does rely somewhat heavily on the success of the Apple Watch.

Even though the Apple Watch is popular, it looks to be a rather unsatisfying experience for new customers. The plethora of bugs on both the platform and apps makes it difficult for customers to enjoy using it. The slow performance sometimes means it is quicker to pull a phone out instead of waiting for notifications on the watch.

We assume Apple will fix some of these issues before the pre-orders go out to customers, but the first generation Apple Watch is bound to have some problems over-the-air software updates will not be able to fix -- which will require the second generation to fix.

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