Market Overview

Apple Watch Setting Sales Records, According To Tim Cook

Share:
Apple Watch Setting Sales Records, According To Tim Cook

Only a day after IDC issued some sour comments concerning the Apple Inc. (NASDAQ: AAPL)'s Apple Watch, the company's CEO Tim Cook scrambled to quell anxieties. Apple Watch sales hit a record in the first week of holiday shopping, according to a Reuters report that quoted Cook.

Cook Upbeat On Apple Watch

While responding to an email from Reuters, Cook seems to have said the current quarter is on track for the best ever for the Apple Watch. The sell-through numbers, which refer to the number of units sold rather than stocked on retailers' shelves, created a new record, the report said.

IDC Issues Somber Apple Comments

A report released by market intelligence firm IDC on Monday showed that smartwatch market fell in the third quarter despite the overall wearables market growing 3.1 percent year-over-year.

The firm's estimate showed that Apple shipped 1.1 million Apple Watches in the third quarter, down notably from the 3.9 million units sold in the year-ago quarter. The company's share of the overall wearable market plunged to 4.9 percent from 17.5 percent a year ago.

IDC attributed the decline to Apple's decision to launch its second-generation watches in mid-September, which is toward the end of the quarter, an ageing line-up and an unintuitive user interface. However, the firm noted that the last two issues have been addressed with the latest generation of watches. Nevertheless, the firm believes Apple's success could be muted, given the challenges faced by the smartphone category.

Cook's Statement: More Than Meets The Eye?

Cook's email response, though reassuring, should be taken with a pinch of salt. Making sense of the comments, Jeremy Owens, MarketWatch's technology editor, clarified that sell-through represents the sales against the number of units shipped.

This takes the sheen off the "record number" Cook touted, as it suggests Apple sold the biggest percentage of smartwatches that were sent to stores. Also Owens cried foul over the lack of clarity offered by the phrase "record quarter for the gadget." It could be construed as a record for any metric, including revenue, profitability, unit sales or even sell-through.

All said and done, Apple investors seem to have taken Cook's statement at face value and the shares were up 0.7 percent at $109.94 in pre-market trading Tuesday.

Latest Ratings for AAPL

DateFirmActionFromTo
Oct 2020Credit SuisseMaintainsNeutral
Oct 2020Morgan StanleyMaintainsOverweight
Oct 2020RBC CapitalMaintainsOutperform

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Apple Watch holiday shopping seasonAnalyst Color News Analyst Ratings Movers Tech Media Best of Benzinga

Latest Ratings

StockFirmActionPT
DCTRBC CapitalMaintains51.0
INTCSusquehannaMaintains56.0
INMDCanaccord GenuityMaintains51.0
HXLCanaccord GenuityMaintains36.0
LGNDCraig-HallumMaintains195.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com