Could Apple Abandon the Apple Watch? Sales Plunge 55% from Last Year

apple-watchFrom ZeroHedge: Tim Cook’s first major, standalone product is a flop. According to the latest IDC data, sales of the Apple Watch plunged by 55%, from 3.6 million a year ago to just 1.6 million in Q2.

The sharp decline in sales of a product that many “expert analysts” had staked would result in a “wearables” revolution and a new golden era of growth for Apple, is highly unusual for a new Apple product so early in its life and will add to concerns about Apple’s growth prospects this year. By reference, the iPhone posted nine years of uninterrupted growth from its launch in 2007 until the first quarter of this year, when unit sales fell by 16% to 51 million the FT writes.

Other companies did better: while Apple remained the top seller, Samsung closed the gap thanks to strong 51% year-over-year growth and a 9%  jump in market share to 16%.  Lenovo’s Motorola brand also saw a sales increase of 75% to 0.3 million. The Apple Watch’s market share has tumbled from 72% at its launch to just 47% in the most recent quarter.

As IDC said, “Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market. Every vendor faces similar challenges related to fashion and functionality, and though we expect improvements next year, growth in the remainder of 2016 will likely be muted.”

Apple Inc. (NASDAQ:AAPL) shares fell $0.52 (-0.52%) to $99.43 in Thursday afternoon trading.

This article brought to you courtesy of ZeroHedge.

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