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So the first version of the Apple watch has failed, but the author hopes for a better second version, which may even be cheaper. Meanwhile he's happy about the

So the first version of the Apple watch has failed, but the author hopes for a better second version, which may even be cheaper. Meanwhile he's happy about the software updates. I guess the "sold more units than the ipod" argument refers to the first generation ipods, too?

JonFish85 11y ago
"Failed" is probably a strong word. Seems like it didn't meet Wall Street's expectations, but to say the product failed seems overblown. As a person who loves Apple products, I'm waiting for the 2nd generation, mostly because I think that's where Apple really tends to shine. The first gen is solid but obviously first-generation; 2nd generation seems to be where they figure out what's most important to customers and really tighten the screws there.
mkirlin 11y ago
"$1b+ in sales" == "has failed"? Christ, I hope everything I do fails so well.
- kbody 11y ago
  Margins matter, remember of PS3 which was sold at cost and even with losses since Sony was looking at profits from game sales.
  - jasonpbecker 11y ago
    Of course they do, and Apple has the highest margins in the business and never sells near cost. Apple Watch probably has margins in the mid to high 30% just like all other Apple products do around launch.
  - matwood 11y ago
    And according to tear downs margins are considered pretty high. Not as high as their other products, but they are certainly not selling at a loss. I too find it funny talking about a failure of a product that had ~1B in revenue (more than the MS Surface tablets in the same quarter), and where Tim Cook said the sales were back loaded, i.e. accelerating. Anecdotally I'm seeing more and more Apple Watches around. EDIT I guess the Apple haters like down voting facts. Here are some sources from yesterdays earnings call: From the earnings call transcript (http://www.imore.com/this-is-tim-transcript-q3-2015 http://www.imore.com/this-is-tim-transcript-q3-2015): On the Watch, our June sales were higher than April or May. I realize that’s very different than some of what’s being written, but June sales were the highest. The Watch had a more of a back-ended kind of skewing. From the CFO (http://www.sanluisobispo.com/2015/07/21/3730284_apple-strong-iphone-sales-few.html?rh=1#storylink=cpy http://www.sanluisobispo.com/2015/07/21/3730284_apple-strong...): But Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to "well over" that $952 million increase. He said the watch sales were offset by declining revenue from iPods and accessories, which are also lumped into that segment.
- smackfu 11y ago
  When you are the biggest company in the world, everything you do has to be big, otherwise it's a distraction.
TazeTSchnitzel 11y ago
Failure and success isn't binary. It's not an overnight bestseller, but it's had some sales, customers are very satisfied, and app developers are laying the foundations for an ecosystem. The future could be very bright.

JonFish85 11y ago

"Failed" is probably a strong word. Seems like it didn't meet Wall Street's expectations, but to say the product failed seems overblown. As a person who loves Apple products, I'm waiting for the 2nd generation, mostly because I think that's where Apple really tends to shine. The first gen is solid but obviously first-generation; 2nd generation seems to be where they figure out what's most important to customers and really tighten the screws there.

mkirlin 11y ago

"$1b+ in sales" == "has failed"? Christ, I hope everything I do fails so well.

kbody 11y ago
Margins matter, remember of PS3 which was sold at cost and even with losses since Sony was looking at profits from game sales.
- jasonpbecker 11y ago
  Of course they do, and Apple has the highest margins in the business and never sells near cost. Apple Watch probably has margins in the mid to high 30% just like all other Apple products do around launch.
- matwood 11y ago
  And according to tear downs margins are considered pretty high. Not as high as their other products, but they are certainly not selling at a loss. I too find it funny talking about a failure of a product that had ~1B in revenue (more than the MS Surface tablets in the same quarter), and where Tim Cook said the sales were back loaded, i.e. accelerating. Anecdotally I'm seeing more and more Apple Watches around. EDIT I guess the Apple haters like down voting facts. Here are some sources from yesterdays earnings call: From the earnings call transcript (http://www.imore.com/this-is-tim-transcript-q3-2015 http://www.imore.com/this-is-tim-transcript-q3-2015): On the Watch, our June sales were higher than April or May. I realize that’s very different than some of what’s being written, but June sales were the highest. The Watch had a more of a back-ended kind of skewing. From the CFO (http://www.sanluisobispo.com/2015/07/21/3730284_apple-strong-iphone-sales-few.html?rh=1#storylink=cpy http://www.sanluisobispo.com/2015/07/21/3730284_apple-strong...): But Chief Financial Officer Luca Maestri told The Associated Press that revenue from the watch amounted to "well over" that $952 million increase. He said the watch sales were offset by declining revenue from iPods and accessories, which are also lumped into that segment.
smackfu 11y ago
When you are the biggest company in the world, everything you do has to be big, otherwise it's a distraction.

TazeTSchnitzel 11y ago

Failure and success isn't binary. It's not an overnight bestseller, but it's had some sales, customers are very satisfied, and app developers are laying the foundations for an ecosystem. The future could be very bright.