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Is The Apple Watch On A Death Dive?

With sales for iPads and iPhones continuing to slip, it’s no secret that there’s a lot riding on the success of the Apple Watch. However, numbers suggest that the device’s fortunes are on a downward spiral that could see it quickly become a black spot on the company’s portfolio.

Based on shipping estimates released by IDC and Strategy Analytics, sales for the premium wearable have been rapid decline and now sit far below those of the previous year.

If holiday sales fail to break that trend, it could lead to radical restructuring or even a discontinuation of how Apple approach the smart watch category.

It’s a fact even CEO Tim Cook has acknowledged, saying that “we expect its seasonality to be similar to the historical seasonality of iPod, which typically generated 40% or more of its annual unit sell-through in the December quarter.”

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2015 generated an all-time high when it came to sales of the Apple Watch, with 5.1 million units. However, sales for the device dropped to 2.2 million the following quarter and have continued to fall to half of that in the most recent one.

If the Apple Watch fails to perform this quarter, with both hype around the new Series 2 models and increased affordability for Series 1 units behind it, it could sow further discontent among shareholders and rapidly change the shape of the growing smartwatch category.

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