Apple Watch Sales To Fall More than 25% In Its Second Year

KGI Securities analyst Ming-Chi Kuo expects the shipments of Apple Inc. (NASDAQ: AAPL) Watch to decline more than 25 percent year-over-year in comparison to 2015, according to a MacRumors report.

The MacRumors report said, "The wearable device sold an estimated 10.6 million units in eight months last year, but Kuo predicts that even with the launch of the Apple Watch 2, and a full twelve months of sales, the device's shipments will still come in at less than 7.5 million units in 2016."

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According to MacRumors, "The analyst describes an 'immature wearable device market' and a few key lacking features of the first-generation Apple Watch – iPhone independency, no killer app, limited battery life, etc. – that will contribute to its overall sales decline prior to the launch of the second-generation version."

"Kuo believes that the Apple Watch 2 will enter mass production in the third quarter of 2016, in line with a fall launch alongside the iPhone 7, so its overall contribution to shipping numbers for the year is predicted to be limited," the report added.

The report also said, "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," the report elaborated.

Shares of Apple closed Friday's trading at $108.66.

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