Apple Watch Fails to Reach Supplier 'Break-Even Volume' of 2 Million Per Month

Sales of the Apple Watch have failed to reach supplier 'break-even volume' of two million units per month, reports the WSJ.

Analysts have chimed in, and Tim Cook, Apple’s CEO, has said that sales of the Watch had “exceeded expectations” for the company since its launch, with a surge in June. However, according to a new report from the Wall Street Journal, and citing information provided from supplier Advanced Semiconductor Engineering Inc. (by way of Mark Li of Bernstein Research), which puts internal parts of the Apple Watch inside a case through the process known as system-in-package, a glimpse at sales has been reached.

According to Li, an ASE subsidiary told investors that the company had not reached its “break-even volume” in the second quarter of 2015. That volume is set at two million Apple Watch units per month. Moreover, the company does not believe that it will reach that break-even volume of two million units per month in the third quarter of the year, either. Add to that, ASE does not believe it will reach its target goal of 18 million units total in 2015.
“The shortfall of Apple Watch is a disappointment,” Mr. Li wrote in a note to clients. “We came in with a low expectation but below break-even still surprised us.“
[via WSJ]

 


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