Apple Watch Shipments Expected to Decline 25% in 2016

According to a new research note issued by KGI Securities analyst Ming-Chi Kuo, Apple Watch shipments will fall 25 percent this year to just 7.5 million units overall. In comparison, it is estimated that Apple shipped 10.6 million Watches in 2015.

When you consider that the Apple Watch was only on sale for eight months last year (it didn’t launch until late April), then that makes a 25 percent decline in shipments throughout 2016 look even more significant.

Apple Watch Bands-iapptweak

Kuo’s note also predicts some of the features of the next version of the Apple Watch, which is expected to adopt the same upgrade cycle as the iPhone. In essence, 2016’s Apple Watch 2 will see some under-the-hood spec improvements and possibly minor form factor changes, while fans will have to wait until 2017 for a massively redesigned wearable from Apple. The similar design is one of Kuo’s biggest reasons for declining Apple Watch shipments in 2016, despite even the uptick in sales the device could have during the holiday season.

In either launch scenario, the Apple Watch 2 is rumored to have a bevy of feature improvements over its predecessor, including a FaceTime video camera, an expansion of its Wi-Fi capabilities, and new model tiers. Rumored casings of the next iteration of the device could possibly even incorporate new materials such as titanium, tungsten, palladium or platinum.

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