Smartwatches are neat, and that’s about all that can be said about them. Even the Apple Watch is little more than a nifty gadget that you strap to your wrist, and this is reflected in the device’s sales. Despite being the most-popular smartwatch on the market, a KGI Securities analyst by the name of Ming-Chi Kuo claims that the Apple Watch’s sales will decrease by 25% this year. The reason for this is that, as I mentioned before, there’s not much of a reason to buy a smartwatch at the moment, and even many of the people who own an Apple Watch agree that there’s no real need for the device.
It’s been nearly one year since the launch of the Apple Watch. While the device is easily the most successful smartwatch ever released, it hasn’t exactly set the world on fire the way the iPhone and iPad once did. Well connected analyst Ming-Chi Kuo of KGI Securities is projecting that Apple Watch shipments are actually going to decrease by 25% this year despite the fact that Apple is planning to release a second-generation Apple Watch. I should note first that people who own the Apple Watch really like it. Per Re/code, a new survey from advertising company Fluent shows that 77% of Apple Watch owners consider the device a success and that two thirds of them plan to upgrade to the newest version of the watch when it comes out. And that’s all great, but there seems to be more limited upside for the device — among the general population, 53% of people do not think the Apple Watch has been a successful product, for example. What’s really interesting about Fluent’s survey are the reasons Apple Watch owners list for not buying a next-generation Apple Watch: 34% of owners cited high prices as a reason for not buying, while 31% said the device just wasn’t useful enough to justify buying, and another 16% simply said the device is “ugly.”