The Apple Watch was supposed to be the next magical product from the gadget maker. Not so fast, says Andy Hargreaves of Pacific Crest in a note to clients.
Hargreaves Tuesday cut his forecast for Apple Watch sales in the current fiscal year from 11 million to 10.5 million. That might not sound like much of a reduction, but he warns the bigger letdown will come next fiscal year due to “soft follow-on sales.” The analyst says the company will sell just 21 million watches in fiscal 2016, down from the earlier 24 million estimate.
“Anecdotal evidence suggests Apple Watch demand is slowing quickly,” according to Hargreaves’ note. “This dovetails with recent supply checks, which suggested a reduction in component order volume.”