All eyes turned to Apple this afternoon as the world's most profitable tech company announced the first full quarterly results that include its smartwatch. You could hear a collective pin drop across the Internet as U.S. stock markets closed and everyone waited wondering: Flop or Not?
We don't know. In the press release, CEO Tim Cook refers to the "great start for Apple Watch", but there's no data I can see there or in the 8-K filing with the SEC. Looks like the device fits into the "Other" category. Nor is there anything from Cook's opening remarks during the earning's conference call. But there are many distracting boasts.
Feedback from Apple Watch customers is very positive, Cook tells financial analysts today. Ninety-four percent wear their timepieces regularly, if not every day, he asserts. Cook says the potential for Apple Watch is "enormous". He calls launching the product a "privilege", praising its use for cancer research and touting the promise of Apple Pay and Siri. Missing: Sales data. You must wonder why from a company typically quick to tout sales numbers.
The lack of data, unless I'm just too dimwitted to find it, is disconcerting. Apple Watch is the first truly new category device to arrive during Cook's tenure. The gadget's measure of failure, or success, reflects upon his ability to lead Apple, as an innovation disruptor, during the post-Steve Jobs era. In business, perception is everything. How investors perceive Cook and Apple's future matters, particularly with more than two-thirds of revenues coming from iPhone, which sells into a rapidly saturating market.
Ahead of the earning's announcement, Canalys released its estimate: 4.2 million shipped, which aligned with Wall Street analysis consensus.
The road to ruin, or success, depending on how you interpret the lack of sales data, is a long one. Apple announced the smartwatch in early September 2014, preorders opened April 10, 2015, and sales started two weeks later.
Between the unveiling and the selling, much punditry filled in the gaps. For example:
- "5 key reasons why you shouldn't buy an Apple Watch", Manish Singh (3/4/15)
- "Apple carves itself a niche at the top of the market with Apple Watch", Mark Wilson (3/9/15)
- "Apple Pay is the reason Apple Watch won't fail", Matt Trevathan (3/12/15)
- "Apple Watch's potential profits are scary", Joe Wilcox (3/16/15)
- "What could you buy for the price of Apple Watch?", Joe Wilcox (3/25/15)
- "The Apple Watch launch is a brand-damaging botch job", Wayne Williams (4/16/15)
- "Tim Cook's Apple is all about fashion", David Molofsky (4/20/15)
- "The reasons why Apple Watch will succeed", Sam Pudwell (5/11/15)
- "Apple Watch sales are a disaster", Mark Wilson (7/08/15)
- "5 things I like about Apple Watch", Joe Wilcox (7/18/15
I will add to this news analysis following Apple's earnings conference call, sometime after 6 p.m. EDT.
Photo Credit: Shinya Suzuki
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