Tick-tock shock is tolling for Apple
“Watch” out, Tim. That wrist gadget of yours is begging comparison to a mainstay of comic book culture.
Wall Street is getting worried about the Apple Watch.
A leading tech analyst cut his forecast for Apple Watch sales on Wednesday amid widening concerns that demand for the new gadget is winding down after a splashy spring launch.
In a note to clients, Pacific Crest Securities analyst Brad Hargreaves said an initial feeding frenzy “should allow Apple to meet or exceed” his sales forecast of 5.5 million watches sold in the three months ended June 27.
But the slowdown should hit in Apple’s fiscal fourth quarter ending in September, Hargreaves said. While watch sales in the period will be “relatively strong,” Hargreaves nevertheless cut his estimate for 2015 Apple Watch sales in the third and fourth fiscal quarters to 10.5 million from 11 million.
For 2016 sales, Hargreaves slashed his forecast more drastically — to 21 million watches from an earlier forecast of 24 million.
The analyst cited worries that Apple Watch momentum is fading fast.
“Store visits, Google search volume, thirdparty data and recent supply checks all suggest demand for Apple Watch has fallen sharply from initial levels,” Hargreaves wrote.
Indeed, while Google searches for “Apple Watch” spiked during its April launch, they had declined so sharply by midMay that they even trailed searches for “iPod” — a product that some speculate Apple is in the middle of phasing out.
Still, most analysts, including Hargreaves, aren’t lowering forecasts for Apple’s overall results.
That’s because global demand for the iPhone — a far bigger business — has been better than expected, he said.
Apple shares on Wednesday rose 0.9 percent to $126.60.