The Apple Watch is available on pre-order and the delivery estimates keep getting larger as demand surpasses all expectations. The principal analyst of Think Big Analytics, Carl Howe, has reported that the Apple Watch has sold 3 million watches already and as the production moves forward, Quanta will start manufacturing 2 million units a month for the coming last two months of Q2.
According to the estimates, the cheapest Apple Watch Sport will sell the most units and will ship 1.8 million units. The Apple Watch will come in second at 1.2 million Steel watches while the most premium watch, dubbed Edition, is expected to ship 40,000 units.
Gross margins on the Apple Watch should exceed 60% making it the most profitable Apple product ever
These are numbers for the first two weeks worth of sales for the watch. According to Carl Howe, the gross margins on the wearable should also exceed 60% which should make the Watch, the most profitable Apple product ever.
“[The electronics] in the expensive models are the same ones used in the Sport models, and they just don’t cost that much. And while adding Gold cases and designer bands add cost to the bill of materials, the costs are small compared to the price premiums paid for these products.
Unlike in the consumer electronics business, I see no pressure for prices to fall and if anything manufacturing costs will, resulting in a very profitable business.”
How acknowledges that his estimates are educated guesses but given his credible name these should be close to the real numbers. He has based his guesses on the data from Slice Sales Data, polling on model orders and Quanta Production estimates.
If the numbers come out close to reality, the Edition Watch will have only a tiny sales number but bring in significant profits, in true Apple fashion. The sales estimate a revenue of $2 billion which will be almost equally divided amongst the three editions of the watch.
Given the numbers and pre-orders, Apple still might not be able to match demand for its Apple Watches in terms of production.