This Analyst Suggests 3.34 Million Apple Watch Units 'Possible' Over Pre-Launch Weekend

Trip Chowdhry, Managing Director at Global Equities Research, on Saturday published a report about the Apple Watch, which he said exceeded most expectations.

The firm estimated 2.5 million pre-orders on the launch weekend. Consequently, they raised their price target on Apple Inc. AAPL to $176 from $165.

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On Monday, Chowdhry rolled out another report where he answered questions Global Equities Research received on its April 11 report.

How would Global Equities Research interpret the data from Slice Intelligence?

"Slice Intelligence estimated 1 million Apple Watch Units were pre-ordered in USA only and for Friday only.

"Assuming the above as a starting point, combined with our Research, we think sales of 3.34 million Apple Watch Units on the pre-launch weekend (Friday, Saturday and Sunday) is possible, easily exceeding our 2.5 million Apple Watch estimate."

The Apple Watch was launched in eight countries: U.S., Canada, France, Germany, UK, China, Japan, Hong Kong and Australia.

"Now lets look at Friday's Orders - Geographical distribution based on Historical Apple product adoption rates

• USA - 1 Million
• Canada - 50,000
• France, Germany, UK - 400,000
• China, Japan, Hong Kong - 800,000
• Australia - 50,000”

This would equate to 2.3 million units ordered on Friday only.

The firm’s research indicated the following:

• "Close to 20% people changed their order to Stainless Steal Watch after visiting the Store
• >50% of people who tried the Apple Watch at the Store, ordered the Watch
• People, who Ordered the metallic band have also indicated they will buy a sports band separately
• Most orders were between 2 to 4 Apple Watches per family.”

Based on the above data, Chowdhry got the following estimates:

• "Saturday Orders, 20% of Friday Sales = 460,000 
• Sunday Orders, 25% of Friday Sales = 575,000
• Total of Friday, Saturday and Sunday Orders =  3.34 Million (2,300,000 + 460,000 + 575,000) - exceeding our 2.5 Million unit estimate for the weekend."