KGI Estimates 2.3 Million Apple Watch Preorders
In a new report from KGI’s Ming-Chi Kuo, the usually accurate analyst estimates that global pre-orders for the Apple Watch will top 2.3 million units through May. A report earlier this week claimed that Apple Watch first day pre-orders were at almost 1 million units.
Further breaking it down by specific model, Kuo estimates that the Sport model of the Apple Watch accounted for 85 percent of pre-orders, while the Apple Watch accounted for 15 percent, and the Edition less than 1 percent.
At least according to KGI’s Ming-Chi Kuo, who I tend to regard as reputable, the orders were overwhelmingly stacked towards Sport models. Although the Sport was always going to be the predominant model, 85% of orders is domineering with a practically monopolistic control of demand.
Another interesting point is that, under consideration of the raw financials, the stainless steel Apple Watch had the smallest effect on Apple’s bottom line. Even at just 1%, the Edition’s high profit margins will mean that the returns from this collection will exceed the profits from the Apple Watch models, which made up 15% of sales. Similarly, the Sport watches should exceed profits of the stainless models due to the volume shipped.
If the trends continue, the collection which shares its name with the product itself, Apple Watch, will be the most unyielding for Apple financially.