How is the Apple Watch doing? According to a report from The Wall Street Journal, not so well. The publication reports that according to analyst Mark Li who works at Bernstein Research, it seems that a comment made by one of Apple’s suppliers has hinted that the Apple Watch might not be selling as well as it should.
The supplier in question is Taiwan’s Advanced Semiconductor Engineering who is responsible for assembling the system-in-package component for the wearable. According to an ASE subsidiary, it seems that even shipping 2 million units a month to Apple did not even reach break-even volume. They also added that they do not expect to hit the break even point in the third quarter ahead of the holidays, hinting that Apple isn’t ordering enough units, which in turn might hint at the lack of demand.
According to Li, he claims that it is unusual for a company such as ASE to not break even during that particular period, which is usually seen as a busy period. As expected when asked to officially comment on the numbers, both ASE and Apple declined to say anything. That being said, it is unclear as to who might be right.
Previously we had heard reports on how the Apple Watch apparently commanded 75% of the smartwatch market, hinting that it was doing well. Apple’s CEO Tim Cook had also recently denied the claims that the watch’s sales were declining, claiming that it had actually peaked in June. However until we see the official numbers released by Apple, which oddly enough has yet to come, we can’t say for sure.
Filed in . Read more about Apple Watch, Smartwatch and Wearable Tech.