Apple Watch "showing signs of life" following Black Friday
FBR Capital Markets analyst, Daniel Ives, has told investors that the Apple Watch is showing "signs of life" following Black Friday sales in the US. Ives stated that the Watch's disappointing performance so far is down to its high price tag, supply constraints and mixed reviews from technology journalists, however "this morning, we heard of ramping interest/sales among consumers based on our conversations at various Apple, Target, and Best Buy stores". Ives estimates sales in the December quarter to be "close to the 5-6 million mark", which, while dwarfed by iPhone sales, the analyst believes will make the wearables sector an important area for Apple going forward, and thus one that will be "closely watched" as the holiday season progresses. 

Maybe the Apple Watch won’t be a holiday humbug, after all.

Demand for the overhyped wrist gadget was showing “signs of life” at Apple stores and other chains on Black Friday, according to FBR Capital Markets analyst Daniel Ives.

Best Buy has also made positive noises about the watch, while Target cited it as one reason it saw record-breaking online sales on Thanksgiving.

“We have slowly seen momentum in the field over the last few months” for the Apple Watch, Ives said in a note to clients Friday.

That’s despite the fact that Apple Watch sales reportedly have been disappointing since an April launch because of the watch’s high price tag, mixed reviews and glitches.

Ives blamed the lackluster start on “supply constraints” and a “choppy launch period,” which he estimates have resulted in total sales of just 6 million units over the past six months.

But “this morning, we heard of ramping interest/sales among consumers based on our conversations at various Apple, Target, and Best Buy stores,” Ives said.

Accordingly, Ives now estimates that Apple Watch sales in the December quarter “should be close to the 5 million/6 million-unit mark.”

That’s small potatoes compared with the iPhone, sales of which could top 75 million units in the December quarter, analysts predict.

Still, “the wearables category is an important area for Apple going forward, and [Apple Watch] sales are being closely watched into the holiday season as a barometer for future growth/product areas,” Ives said.