Demand among first-time buyers is still dominating Apple Watch sales, the company has revealed.
In the quarterly earnings call, Tim Cook revealed that 2/3 of Apple Watch purchases in Q1 2023 were first-time users, 9to5Mac reports.
Apple recently overhauled its entire line-up of smartwatches, with the Series 8 joined by the all-new Apple Watch Ultra and revamped Apple Watch SE.
That wasn’t enough to drive growth in its Wearables, Home and Accessories division, which saw a decline of 8% in the year. That is against a 5% decline across the entire company.
The Wearables, Home and Accessories division also comprises of AirPods and HomePod.
The decline isn’t unexpected, given the global economic outlook – and events in China with the pandemic affecting production.
But if we simply look at wearables, the company will have to contend with a slowing of innovation.
The Series 8 was not a huge upgrade on its predecessor, and it seems there won’t be a big change in 2023 either, according to Mark Gurman.
New sensors and MicroLED screen technologies aren’t ready to come on stream yet. So while it’s good news that 2/3 of Apple Watch buyers are new to the platform, there doesn’t seem to be huge reasons for people to upgrade quite yet.
But we wouldn’t be surprised to see more quarters of slow wearables growth until new sensors and MicroLED screen tech give users a big reason to jump in.
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