Markets

Apple Gets 1M Apple Watch Pre-Orders on First Day - Analyst Blog

An image of a globe with financial data surrounding it
Credit: Shutterstock photo

Having solidified its foothold in the smartphone and PC market, Apple Inc.AAPL , seems to be on track to capture the smartwatch market as well. According to the research firm Slice Intelligence, Apple has garnered about 1 million orders in the U.S. alone on the first day when the tech bellwether made online pre-ordering available for the device.

Slice Intelligence has estimated the figure using e-receipt data from 9,080 online shoppers who confirmed that they have ordered the much anticipated wearable device. Based on this data, the research firm has approximated that the total number of pre-orders by U.S. customers reached 957,000 on the first day itself. Apple is expected to release data later on Monday.

Apple Watch has been priced at, $349 for the Sport edition, $549 for the Apple watch line and $10,000 for the premium edition. Sample data from online purchases suggests that on an average, U.S. buyers spent approximately $503.83 on all Apple Watches. Specifically, the average amount spent on Apple Watch Sport was $382.83 per watch, while the Apple Watch line average came higher at around $707.04 a watch.

While Apple Watch will be officially available for sale from Apr 24 onward, some models of the device will only be available in May, and in some cases, buyers will receive their orders as late as June.

The report from Slice Intelligence also forecast details about buyers' design preferences and the history of purchasing Apple products in the past. Given the company's loyal customer base, it's no surprise that almost 72% of the buyers have bought at least one Apple product in the last two years. Of these, 21% purchased an iPhone 6 or iPhone 6 Plus in the past few months.

According to media reports, JPMorgan Chase & Co. JPM predicts Apple Watch shipments to be about 26.3 million units in 2015. On the other hand, Bernstein Research has kept its estimates lower at 7.5 million in the back half of 2015 and 20 million in 2016.

While the smartwatch market is at a nascent stage, a report by CCS Insight states that Apple Watch will play an instrumental role in shaping the wearable device market. The research firm expects global sales of wearable devices to accelerate in 2015, soaring 158% year over year to 75 million units. Of these, smartwatches are expected to be the primary growth drivers contributing 44% of total sales by 2018.

In fact, a lucrative market and the entry of Apple has encouraged a number of established watch makers like Fossil FOSL to collaborate with technology majors like Intel Corp. INTC for developing smartwatches.

Apple has a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

APPLE INC (AAPL): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

INTEL CORP (INTC): Free Stock Analysis Report

FOSSIL GRP INC (FOSL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FOSL INTC JPM AAPL

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More