Apple Watch Available for Walk-in Purchase in June - Analyst Blog
Apple Inc. AAPL recently announced that the much awaited Apple Watch that is available for pre-ordering online will not be available in stores on the day of its official launch, that is, Apr 24. In fact, a note by the tech bellwether’s retail executive Angela Ahrendts to its employees suggests that the stores will not be able to stock the Apple Watch before June.
The main reason cited for the absence of the product from retail shelves is the strong demand for this novel wearable device amid limited supply. The advanced smartwatch seems to have witnessed strong reception among tech enthusiasts especially Apple’s strong customer base.
According to the research firm Slice Intelligence, Apple received about 1 million orders in the U.S. alone on the first day of pre-order availability. (Read more: Apple Gets 1M Apple Watch Pre-Orders on First Day). Earlier this week, media reports have predicted that the number has crossed the 2.3 million mark by now.
Apple Watch is one of the most customizable offerings from the tech giant as the user has a wide range of choices starting from multiple cases to diverse band options. Given the differentiated nature of the offering, Apple needs to have an adequate stock in each of its stores to ensure uninterrupted walk-in purchases. Meanwhile, limited supply of crucial components like the haptic vibrator and the OLED screen proved to be a hindrance in increasing production.
Despite the delayed availability in stores, Ahrendts assured that the online purchase will by no means create problems for its customers who will get both online and offline support (at the stores) for setting up the device, syncing with other Apple devices and using the wide range of features the watch offers.
This is the first time that Apple has forayed into the wearable devices space. As such, the company has taken a different approach for retailing this product. In fact, it was for the first time that any Apple product was available for preview in stores, prior to the launch. Ahrendts clarified that this type of marketing and sales initiatives were specifically meant for Apple Watch and that the other products will continue to be launched in the traditional way.
Apple has a Zacks Rank #2 (Buy). Some other smartwatches in the market that can pose competition to Apple include Motorola Solutions’ MSI Moto 360, Samsung’s SSNLF Gear S and Pebble Time. Additionally, established watch makers like Fossil FOSL are collaborating with technology majors such as Intel Corp. INTC for developing smartwatches.
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