As part of a larger article on rumors about the future of the Apple Watch, analyst Ming-Chi Kuo predicts a significant year-over-year decline in wearable device shipments in 2023. The article, published Tuesday afternoon, explores the features and design of the Apple Watch in the coming years. However, Ming-Chi Kuo dropped a noteworthy tidbit about Apple Watch shipments.
access:
Apple Online Store (China)
Without context, Kuo said: "Apple Watch shipments are expected to decline by about 15% year-on-year in 2023 to 36-38 million units."
It's unclear where Ming-Chi Kuo's data came from, or whether he was referring to the 2023 calendar year or the 2023 fiscal year that ended on September 30. Apple's wearables division encompasses more than just the Apple Watch, but it has been a consistent source of overall strength for the company, supporting products that have taken a hit this quarter.
Ming-Chi Kuo wrote: "Apple Watch is a classic product that succeeds through repositioning. However, based on current shipment momentum, if there is another unfortunate year-over-year decline in 2024, it may need to be repositioned again."
Kuo was referring to the company's fashion-first slogan at the Apple Watch launch event. At that event, Apple invited fashionistas to attend the event and distributed Apple Watches to celebrities before the device shipped.
While Apple briefly discussed the watch's health features during the event, the messaging changed quite quickly. The next year, and every year since, Apple focused on fitness features.
It’s worth noting that the $17,000 18K gold Apple Watch is no longer eligible for service and is now classified as an “antique” product. In watchOS4, it was cut off from support for the new watchOS.