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Apple Watch sales below expectations according to suppliers

Apple Watch sales below expectations according to suppliers

Sales of the Apple Watch are not as strong as the Cupertino company claimed during its quarterly earnings call last month, with one supplier reportedly saying it failed to hit ‘break-even volume’ from April to June.

A subsidiary of Advanced Semiconductor Engineering (ASE), the Taiwanese company that makes the system–in–packaging which powers the Apple Watch, is said to have broken the news to investors during a conference call.

Analyst Mark Li, who related the news, said ASE was supposed to ship two million units in the second quarter of 2015. However, such numbers were apparently not required. ASE has said it does not foresee making break-even volume n the current quarter either, despite this being the time when tech companies traditionally ramp up production ahead of the holiday season.

While ASE and Apple did not offer official comment, the news flies in the face of comments made by Apple CEO Tim Cook, who said the smartwatch had sold ‘beyond expectations’.

Apple, however, refused to divulge exact sales figures last month, saying it didn’t want to aid the competition. However, it’s starting to appear as if it was more concerned about revealing the device’s struggle for mainstream acceptance.

Source WSJ

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