Apple Watch sales ‘far worse’ than bearish predictions
Apple’s (AAPL) new smartwatch might not be as profitable as envisioned if reports of flagging demand turn out to be true, Edison Investment Research analyst Richard Windsor said Wednesday. “If the latest reports are to be believed, sales of the Apple Watch have been far worse than even Edison’s bearish predictions,” Windsor said. “This has meaningful repercussions for the profitability of the device as it clearly lacks the scale to earn good EBIT (earnings before interest and taxes) margins once fixed development and marketing costs have been taken into account.” Slice Intelligence reported this week that Apple Watch sales in the U.S. have seen a steep drop-off since an initial surge in buying after the product’s launch in April. While the methodology behind Slice’s data is open to question, when considered along with estimates from other research firms, there is a clear pattern that Apple Watch sales to date are…