9to5Mac had managed to gain access to the investment note of KGI which suggested that the shipments of the Apple watch is said to reduce by 25%. As per the 2015 sales notes, the number of units was 10.6 M, this year the prediction that has been made is that the number of shipments of the company is said to go even below 7.5M for the entire year. If this really happens, it will be a very dramatic fall for the company as the comparison of the entire year’s sale for this year will be what they had made in just 8 months last year.
As per the company, the reasons why this forecast was made consists of firstly the fact that the market for wearable devices is still fledgling and the behaviour is yet to mature. As per Ming‐ Chi Kuo, the point of argument is that the device does not have killer applications. There is also room to improve the form factor of the watch. Another possibility about why the demand is being held back is due to the poor life of the battery and reliance on the functionality of the iPhone,
It is also said that the company expects the next lot of mass production of the Apple Watch is said to start by this year’s third quarter. If things go as per this rate, it is believed that it would be launched along with the iPhone 7 with a lot of improvements that includes better connectivity. It is also believed by the company that this move will be a refresh of the S model with form factor that has a little change to it.
As per the analyst, due to the new design, the improvement of the demand of the units is said to be by 2017