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Cape Town - Apple's Watch is a segment sales superstar as uncertainty swirls around wearable devices, a research organisation has found.
This week the California company reported record revenue for the quarter, fuelled by device sales.
"We had an amazing quarter, with iPhone revenue up 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch," said CEO Tim Cook.
According to research firm Juniper, sales of the Watch offset declining iPod numbers. With reports indicating that the pricey Apple Watch Edition is sold out in China, Jupiter calculates that the gadget is finding traction.
"These figures mean that Apple Watch sales to date are most likely between two and 2.5 million. This makes it the most successful smart watch launch to date, with no other launches coming close in a comparable time period," said devices analyst James Moar, indicating that Watch revenue was likely around $1bn.
Controversy
Apple's smart watch is not first to the wearable device market, after following rivals like Samsung, Sony and LG, but the iPhone maker has a loyal fan base who have waited for a new device under Cook's leadership.
Jupiter suggested that despite the boost from the Watch, long term success is more difficult to predict.
"However, despite buyers being satisfied with the device, we continue to see that the product is running out of steam. We would also expect a decline in sales following launch, especially as H1 draws to a close," said Moar.
An Apple Watch has to link to an iPhone. (Duncan Alfreds, Fin24)
The device has already been at the centre of controversy.
A small number of users reported that the gadget which links to an iPhone, does not recognise dark or tattooed skin resulting in the automated locking mechanism failing to function.
There were also reports that the heart rate sensor failed because of a similar issue.
The device has not yet been launched in SA, but that hasn't stopped some from being early adopters.
Sales boost
One local buyer on bidorbuy bought an aluminium and a stainless steel Watch for R10 750 and R13 000 respectively, well above the US retail of $349 and $549.
Apple in June previewed the latest Watch operating system, watchOS 2, as well developer tools with WatchKit. The software is expected to help the Watch compete with Google's Android Wear and boost the number of apps and sales for the Apple device.
Moar said that the festive season should see a boost in sales, though enthusiasm for the Watch was cooling.
"This means we are unlikely to see more than seven million Apple Watches sold by the end of 2015, even with a boost to sales over the Christmas period."
What would you pay for an Apple Watch in SA? Let us know.
- Follow Duncan on Twitter
