Apple has allegedly slashed its initial order of Apple Watches in half, cutting the number of units from around 3 million to just 1.5 million, a new report out of Taiwan claims. As has previously been the case with Apple device launches, supplies of the new wearable are expected to be constrained due to manufacturing difficulties.
The problem seems to stem from Apple’s decision to switch to a new type of display for the watch. Those new AMOLED panels are being manufactured by LG, but the company is having trouble producing enough to keep up with demand. LG was originally expected to produce 5 million panels per month.
But maybe Apple isn’t cutting its supply. Maybe something else is afoot…
This report should be taken with a hefty (and potentially unhealthy) serving of salt. The original source of the story—the Economic Daily News—doesn’t have quite the shining track record that some other publications enjoy, and has previously made some pretty interesting (and dubious) claims about Apple’s manufacturing process.
Tim Cook is a supply chain guru. It makes sense that he would plan for contingencies like this, likely by ensuring other manufacturers could pick up the slack if necessary. While the initial order for LG parts may have been cut to account for low yield, Apple may be relying on another manufacturer (Samsung? Sharp? Others?) to produce displays to meet that 3 million unit order.
That being said, with so many people clamoring to get their hands on Apple’s first wearable, shoppers may want to plan for the possibility of limited availability regardless of how many devices the company is able to crank out.
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I’m sorry to say, but I think the Apple Watch will turn out to be a very expensive mistake for Apple :-/
Sorry to say you’re wrong. Even selling 1 million smartwatches is huge
I have no doubt that the Apple Watch will sale millions but it will be bought for all the wrong reasons. Primarily because it’s being pushed as a fashion piece. Apple needs to focus on function first and looks second. Not saying that looks aren’t important but so far that interface looks confusing and there’s too many ways to interact with the watch. It’s not a simple intuitive OS.
But then again if you price it better ($200) people would look pass those issues.
I love it when people say things like “people will buy for all the wrong reasons”? People spend $1,000s on Movados, Omegas, Tissots, Rolex, etc. for a device that ….tells time. If people like a $349 – $10,000 device that tells time AND a few extra functions tied to their smart phone; isn’t that the right reason?
No one needs to buy that watch. No one needs to buy any luxury item. This is a want purchase. You can’t justify people’s desire to spend on something for fun, style, etc.
Please stop trying to justify a purchase as right or wrong to condemn the product to failure based on what you believe is good or bad. Sure, the watch may not be for you and that’s entirely perfect. However, I may buy the watch but if I do it’s for the “right reasons” for me. I would consider this nothing more than a watch with added functionality that I may or may not use.
So looks are important to me and Apple was right to marry both form and function. The iPhone wasn’t “intuitive OS” over the flip phone when it launched. …that seemed to do just fine too.
I don’t know if there is such a thing as right or wrong reasons when it comes to watches. It’s not really a morality type of thing.
If they sell even just 1 million Apple Watches, it’ll be the best selling smart watch ever. Nothing to sneeze at.
Wrong on all levels.
Didn’t you say the same thing to the Wright Brothers at Kitty Hawk? There are people like yourself in every era so it’s not unusual for you to think that way. Everything Apple does is expensive so one would actually need to know how much Apple is expending and then find out what the returns are. Does Apple break even in a year’s time? We’ll have to see. I THINK Apple will sell more AppleWatches in the first month than the combined amount of every other smartwatch made. Will you be right or will I be right? It really doesn’t matter. Apple does what it has to do no matter what either of us thinks.
Love these doomsday comments. Never change, Apple peanut gallery.
I believe you’re confusing Apple Watch with the Beats acquisition.
As it’s plain to see you have no insight, AT ALL, you should not speak, because what comes out is pure idiocy.
Even 3 million units seems awfully low considering that this would be less than 1% of users with an iPhone 5 or later.
Nope. Not in it’s first year. The iPhone didn’t get where it is overnight. Do your research before posting.
Gazoo is just here to post bullshit on every article. You’ll get used to it.
It was a perfectly reasonable thing to say! Who made you the Internet police Ya egotistical muppet?
Gazoo is actually said something way more reasonable than you did. Comparing Apple Watch launch sales with the iPhone is just stupid! Apple is not the same company it was in 2007 and the Apple Watch does not have the same business model the iPhone had at launch or is in any way comparable to iPhone as a product. To actually look at the number of current iPhone users and based on that see that only 1% would have the chance to purchase an Apple Watch because of supply constraints is low.
Yes, I guess it’s bullshit because you say it is. I don’t see how you can argue that 1% is not low expectations.
What matters is not how many iPhone users they sell a watch to, what is more indicative of success will be Apple Watch’s percentage of the *smartwatch* market.
I’m guessing 30%-40% in the first few months
This kind of reporting is fairly consistent with almost all Apple’s iOS devices: er mer geerd (OMG) not enough products to go around! This is Apple, and this is Tim Cook: any scarcity of product is 100% created to increase demand and add hype. This kind of reporting happens with every phone, every tablet, and now the watch.
Honestly, I call bull on this whole report. It’s just someone trying to stir up a story.
You can say that about *any* Apple supply chain rumor. What makes this any different?
The watch will sell out fast and become a hard to get item. PR move at it’s best.
Now this is what I call responsible reporting. Bravo! You acknowledge the headlines, while pointing out the unreliability of the original source. You also remind people that Apple has multiple sources for any given component and a reduced order from one source could mean increased orders from other sources.
It’s very likely Apple has already planned the rollout of the 2nd generation Watch and is carefully controlling this initial launch. 2-3 million this year can be increased to 4-5 million for the next iteration. Whatever number they pick for the launch weekend is almost certain to be insufficient, which allows Cook to announce that “we’re making them as fast as we can.”
I wouldn’t buy one because every iPhone I’ve bought has struggled to last as long as 18 months. I’m not confident that Apples quality is where it should be.
ROTFL!!! OK, that’s actually funny… I have a LOT of Apple gear on my bench that is in excess of 10 years old, and they’re still going strong. I have first-gen iPhone’s here, original batteries, and first-gen iPad’s, also original batteries, and all are working great!
Yeah, and even then, who cares about a battery swap if the rest of the hardware is intact! Apple standards are amazing not to mention their build quality is unmatched. Watch reviewers are already saying that the Apple Watch actually feels like an actual Watch on the wrist, even when comparing it with the high end stainless steel models from respected brands in this space. Good luck finding another wearable that can match that product feel.
Unlikely. I actually forced myself the other day to go and play with a few Android Wear devices, including that Moto 360. OMG, what unrefined, ugly, bulky, unwieldy pieces of junk! I wouldn’t be caught dead wearing one of those! Can’t wait to feel and use an Apple Watch myself to see how it compares!
My iPhone 1….yes 2007 iPhone 1 still works in EVERY aspect! Don’t buy Apple, hate everything about Apple, complain you can’t afford to buy quality Apple products, but don’t lie. Don’t you have any concern for truth?
Fact: Apples products are SO durable I’ve been able to supplement my income selling used devices.
Sony ericsson P990 2005 with 3g, mms, bluetooth correct, video to re-cord, videophony etc….. Always work very well.
P800 of 2002, so used last month.
absolute Fud… Spread by nervous competition
Betteridge’s Law explains everything we need to know about this “story”.
We are standing on the platform, ready to embark on a ride into a whole new world. From my first mobile phone (which looked like your house phone nailed to the console of your car, and you had to give a mobile operator a 13 digit number for her to place the call) to holding a phone in my hand that does more than any $10,000 computer could do in the 80’s, this is an amazing time. Wearing this technology on our wrists, able to answer calls, give the computer commands and you know very soon, it will have the ability to call 911 when you are having a heart attack. At a few hundred dollars, it’s worth it to some, not to others. With time, costs will come down and not long from now everyone will be wearing one, surfing the web, doing business while our car automatically drives us to work. More than anything the cost is the R&D that has gone into the development of this type of technology. We are standing on the cliff, watching the Wright brothers take off for the first time. It’s a very fortunate place to be, looking at a whole new world.
It is quite interesting that 9to5mac is not backing up such an attractive rumor. Normally you would dig over and over about all possible worst case scenarios in case such a disappointing supply chain issue occurs, but now you just prefer to ignore or support all readers to ignore it.
Given YOUR track record, 9to5mac, I would say there is something else behind this move, we’ll see.