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It's Time To Admit Apple Watch Is a Success (imore.com)

At company's quarterly earnings call, Apple CEO Tim Cook said the holiday period was the company's "best quarter ever" for Apple Watch -- both units and revenues -- "with holiday demand so strong that we couldn't make enough." He added: Apple Watch is the best-selling smartwatch in the world, and also the most-loved, with the highest customer satisfaction in its category by a wide margin. Apple Watch is the ultimate device for a healthy life, and it's the gold standard for smartwatches. We couldn't be more excited about Apple Watch. Long time Apple commentator Rene Ritchie writes: There's a strange narrative in the tech community concerning Apple Watch being a flop, a failure, or in some way, shape, or form, a disappointment. It's particularly bizarre given Apple Watch, as part of the wearable market, is doing record numbers. It could be that there is no real "Smartwatch market", just an Apple Watch market. Much like there's no real "tablet market", just an iPad market. Since it's such a new product category and most of the existing products are still bound to phones, it could also simply be too soon to tell.John Gruber adds: I think we should stop talking about "smartwatches" and just consider Apple Watch a "watch", period. In September, Apple claimed watch revenues second only to Rolex. How can it not be considered a hit at this point?

21 of 406 comments (clear)

  1. Apple fans will buy anything, news at 11 by sinij · · Score: 1, Insightful

    Apple fans will buy anything with an apple logo on it, news at 11.

  2. Apple has ONE PRODUCT by CajunArson · · Score: 1, Insightful

    If you actually read what Apple reported rationally you find this:
    1. The iPhone is successful.
    2. The Mac segment is stagnating and frankly it's probably a healthy dose of RDF + iPhone tie-in as to why it's not in freefall considering how poorly Apple has treated it.
    3. The iPads are actually in freefall and the RDF ain't working.
    4. iWatch? There's a word for that: rounding error. And not a hugely profitable one.

    --
    AntiFA: An abbreviation for Anti First Amendment.
  3. Sorry, But No by segedunum · · Score: 4, Insightful

    I've seen more Rolexes than Apple Watches. Microsoft also did this with Windows Phone when they talked about 'revenue' rather than any hard sales figures. The reality everyone else knew finally dawned.

    1. Re:Sorry, But No by cmseagle · · Score: 5, Insightful

      I've seen more Rolexes than Apple Watches.

      That's not surprising. By most estimates Apple has sold about 20 million iWatches. According to the fine folks at rolexforums.com, Rolex has produced at least 50 million wristwatches, and those wristwatches will stay in circulation for decades.

  4. The strange narrative by Anonymous Coward · · Score: 1, Insightful

    is because nerds have a pretty narrow worldview. If it doesn't exist in their parent's basement, it's not a "thing". Or if they don't want/need one, then that means nobody wants/needs one. Also, since it's hard to tell at a glance if a watch is a "smart" watch or a regular watch, you don't really get a sense of how many there actually are out there. The numbers don't lie, though. They sell millions of these things.

  5. ridiculous propaganda by Anonymous Coward · · Score: 1, Insightful

    Who the fuck do they think this article is fooling. Ipad's share is less than 20% of the tablet market. Take the rest of their claims with a grain of salt accordingly.

  6. Marketshare? by johanw · · Score: 5, Insightful

    > Much like there's no real "tablet market", just an iPad market.

    Nonsense, Android sold more units. Just like the phone market is really an Android market.

  7. Re:You couldn't make enough by Anonymous Coward · · Score: 5, Insightful

    Nobody I know voted for Trump, yet he won with almost 50% of the vote. What's your point?

    Outside your comfort bubble, people do different things. Intelligent people acknowledge this instead of screaming like a madman.

  8. Re:You couldn't make enough by cfalcon · · Score: 4, Insightful

    Totally absurd.

    Apple has sold millions of watches. They don't release numbers, but estimates were 12 million in the first year. So there are like at least 20 million watches, probably. Apple sells like 50-80 million iPhones a year, so by that standard, they are a failure. And as you say, you probably know plenty of people with an iPhone, and only a few (or even none) with an Apple Watch.

    The thing is, the Apple Watch NEVER had to match or even approach the iPhone in order to be a success. The iPhone is a such a success story it is a goddamned joke. The iPhone is close to half of Apple in most years, and this is for a company that nominally will sell you a server or monitor, actually will sell you a notebook, a laptop, a tablet, a goofy gameboy desktop, a variety of mice, the aforementioned watch, a bunch of almost entirely profit accessories (now with more dongles!), a music subscription service, and takes a cut off of everything they have a hand in selling, and not a small cut either.

    The 8 bit Nintendo sold like 60 million units total. You probably knew someone with one of those, but for different reasons. There are entire companies with less units shipped than Apple Watch, and that will remain the case indefinitely. If your standard for success is "everyone in the civilized world will either own one of these or feel its absence day by day", then the Apple Watch is a failure. But if it is anything sane, it is not. It is clear that the Apple Watch, as a project, is quite profitable for Apple. Each Watch costs Apple much less to make than it sells for, and they sell millions.

    No, you and your friends won't feel obligated to own and operate an Apple Watch. That doesn't make it a failure, any more than an Xbone or PS4 is a failure just because most people own neither.

  9. Re:You couldn't make enough by tripleevenfall · · Score: 4, Insightful

    Outside your comfort bubble, people do different things. Intelligent people acknowledge this instead of screaming like a madman.

    I think that is helpful for understanding things, particularly when reading /.

    This is an extremely niche group of people who are not typical consumers.

    This is also a group of people with rooting interests for and against certain companies/products which are so strong that they'd back the average european soccer fan blush for the partiality.

    We should acknowledge the role that price drops and other promotional considerations have had, but really... Apple owns this entire market. Nobody has a credible competitor that's carved out a slice. It's another case of them, for all their faults, still eating people's lunches and leaving /.ers hand-wringing.

    Maybe companies like Samsung and LG and Alphabet should ask themselves why they keep being late to parties and taking cues from Apple and improving their products instead of fragmenting their own platform?

  10. Comparing it to a Rolex? by BarbaraHudson · · Score: 4, Insightful
    A Rolex - lasts for generations, holds and even increases in value with time. The next generation will value it.

    An iWatch - 5 years from now, it will be removed from the drawer where it's been gathering dust and given to some infant as a chew toy because it no longer works with the latest phones, and it no longer gets updates anyway.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    1. Re:Comparing it to a Rolex? by sl3xd · · Score: 5, Insightful

      I have to admit a certain amount of ignorance here, but is it possible to get a Rolex for $400?

      I suspect that's where your argument falls down; it's as ridiculous as comparing a Bic Cristal to a Pelikan Souveraen, or a Vietnamese Moped to a Maybach.

      In other words, you're comparing a mass-market product with an heirloom product. They're not even close to equivalent.

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      -- Sometimes you have to turn the lights off in order to see.
  11. If it's a sucess, nobody is required to admit by Parker+Lewis · · Score: 4, Insightful

    If it's a success, nobody is required to admit, we'll see it everywhere and in the press, like iPods (in the past) or iPhones today.

  12. Re:So, basically,Apple is in the fashion industry by cfalcon · · Score: 3, Insightful

    Anyone selling watches is a fashion company. If the computer revolution had happened before President Kennedy, everyone would have smart hats. It's a profitable division of Apple that gets to reuse aspects of their tech side, and interface with their role as a technology company. But it is absolutely a fashion accessory, because that is what watches are. If you need a functional watch, you can get one for a few dollars, or probably just get a used one for free or almost free.

  13. Re:Watch my arse by Anonymous Coward · · Score: 2, Insightful

    So then, every $50+ non-waterproof windable watches on the market are not "watches" by your definition.

  14. Can we call this Slashxxx by thegarbz · · Score: 4, Insightful

    I come here for news, not for people wanking over completely insignificant statics.

    And that's what they are, the Apple watch is by far the best and most popular of a product category that the overwhelming majority of people couldn't care less about. I think I've seen like 2 of these things, both of them worn by people who work in IT.

    The fact that they sold more than they could make is positive marketing speak for "even we thought it wouldn't sell".

  15. Re:You couldn't make enough by segedunum · · Score: 2, Insightful

    If this was a genuine success then they would not be trumpeting 'revenue'. Microsoft did exactly this with Windows Phone, along with the usual 'supply problems' and 'we can't make enough' crap, and the reality that everyone knew anyway gradually dawned.

    There is one use-case for these things and that's fitness. That's it. There's absolutely bugger-all here that tells us the Apple Watch, or any other 'smart' watch that anyone else makes, is the runaway success they are claiming. However, Apple has become a self-fulfilling prophecy from a financial point-of-view. It simply has to continue to be a rampant success because so many have ploughed money into it.

    The whole thing is sustained on a bubble of nothing. At least Jobs had something to back up the hyperbole and worked out why people would use the product he was trumpeting.

  16. I see Apple watches being worn in public places by sl3xd · · Score: 4, Insightful

    Trying to call the Apple Watch a failure is wishful thinking for those who hate it.

    I see quite a few Apple watches as I walk around my city going to/from work. I'm seeing more Apple Watches, in fact, than any other single brand of watch. It's reached the point where I'm seeing more Apple Watches than other fitness trackers (though that's due more to a decline in fitness tracker use than Apple's success).

    I don't know any of those owner's use case for the Apple Watch, and they sure as hell have no obligation to justify their consumer choice to me or anyone else.

    So at the end of the day, I have to go with the reality I see, instead of falling back to "alternative facts" that support the narrative I like. I'm seeing a decent number of Apple Watches, and it's effectively the only smartwatch I see.

    There's certainly nothing approaching the kind of penetration we see with smartphones, but as far as I can see, the Apple Watch is effectively the only smartwatch people buy.

    Let's face it, this article is effectively /. clickbait - it'll generate a lot of comments (of which I'm guilty). There's a sizable portion of the /. readership who will instantly start frothing at the mouth at the merest hint of any Apple story.

    Given the cancellation of a few anticipated Android cousins, we become all the more rabid should the Apple Watch be mentioned.

    A story about the Apple Watch being successful? Just post it and watch the clicks roll in.

    --
    -- Sometimes you have to turn the lights off in order to see.
  17. Re:You couldn't make enough by chispito · · Score: 3, Insightful

    Apple owns this entire market. Nobody has a credible competitor that's carved out a slice. It's another case of them, for all their faults, still eating people's lunches and leaving /.ers hand-wringing.

    It's not a massive market. It's nothing like the original iPhone or iPod markets.

    The reason people call the Apple Watch a failure is NOT because Apple is doing poorly in the market. The reason they are calling it a failure is because the Apple Watch has failed to make smart watches something everyone wants.

    Personal theory: Most people, consciously or subconsciously, want to be LESS connected to their phones, not more connected.

    --
    The Daddy casts sleep on the Baby. The Baby resists!
  18. Re:You couldn't make enough by Anonymous Coward · · Score: 2, Insightful

    $6B in revenue with $8B in expenses would not be a success, it would be a $2B disaster. Without the associated expense, revenue numbers are useless. Revenue numbers by themselves typically announced by a company when they're losing money on a product. If they won't release the expense number associated with the revenue, or they don't skip those and use profit instead, then a company is usually shoveling bullshit.

  19. Re:Too easy! by Rakarra · · Score: 3, Insightful

    Of course, an on-topic and thought out response involving neither ad hominem attacks or alternative truths drew out the downmods.

    You could have just as easily have said "You have very aptly demonstrated all of the intelligence and thoughtfulness the majority of voting Americans perceive in supporters of Hillary Clinton and/or haters of Donald Trump" and it would have been just as true. The arrogance from either side seems perfectly formulated to totally tick off the other camp.

    But I would suspect that the mods who downvoted you are getting a little sick of Donald Trump arguments being drawn into EVERY SINGLE TOPIC, political or otherwise.