• NPD: Sales of Conventional Watches Slide after the Launch of the Apple Watch

    According to market research firm, NPD Group, sales of conventional watches in the US fell by the steepest amount in seven years during the month of June. The decline was linked in part to the debut of the Apple Watch. Unit sales were down roughly 14% year-over-year to about 927,000, which was the harshest decline since 2008. Retail revenue ended up sliding by 11% to $375 million.

    Fred Levin, the head of NPD’s luxury division, noted that watches cost less than $1,000 were most likely to be impacted by the Apple Watch, considering that’s the range in which people have said they’re most likely to buy Apple’s product. Watches that cost between $50 and $999 suffered setbacks in June, although the most damage comes in the form of a 24% drop for pieces costing between $100 and $150.

    Brands that don’t cost as much typically such as Timex, Burberry and Tissot, did poorly during the month as retailers tried to use discounts to combat consumer saturation.

    As of right now, the impact of the Apple Watch appears to be difficult to gauge, mostly because Apple has refused to share the exact sales numbers or even break out Watch revenue reporting into its own category. Bloomberg thought that since the category containing the Watch gained $950 million within the product’s first quarter, Apple presumably sold at least 1.9 million units assuming an average selling price of $499. What NPD didn’t mention is what impact other smartwatches may have on the market. Although devices from other companies such as Pebble, Garmin and Motorola have had relatively modest success, they could be doing well enough to eat into conventional watch sales.

    We’ll have to wait and see when more concrete information is revealed in the future.

    Source: Bloomberg
    This article was originally published in forum thread: NPD: Sales of Conventional Watches Slide after the Launch of the Apple Watch started by Akshay Masand View original post
    Comments 1 Comment
    1. unison999's Avatar
      unison999 -
      At initial introduction of course they will have some sort of impact, but from Apple unwilling to release sales figures it is not as much of an impact as Apple and world thinks.
      I bought the 42mm sports version just to play around with, so far I find it is not worth the money and been telling everyone I know not to buy it. I got the watch yesterday played with it the whole day got it all set up and it still feel like a toy, I am back wearing my conventional Tag Heuer watch today.
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