Thursday 29 September 2016

Apple expected to quickly ramp up smartwatch production

Published 14/04/2015 | 07:59

People wait for the going on display of Apple Watch in front of the Apple Store in Tokyo's Omotesando shopping district April 10, 2015. Apple Inc expects tremendous interest for its new smartwatch and demand to outstrip supply as consumers get an up-close look on Friday at CEO Tim Cook's first major product. REUTERS/Toru Hanai
People wait for the going on display of Apple Watch in front of the Apple Store in Tokyo's Omotesando shopping district April 10, 2015. Apple Inc expects tremendous interest for its new smartwatch and demand to outstrip supply as consumers get an up-close look on Friday at CEO Tim Cook's first major product. REUTERS/Toru Hanai

Apple is likely to quickly ramp up production of the Apple Watch after strong pre-orders outstripped limited supply, according to industry analysts.

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Apple's website lists shipping times in June for some models, and four to six weeks for others, suggesting the company is straining to meet demand.

However, analysts said Apple could sell between 2.3 million and 4 million watches in the quarter ending June.Apple was widely expected to disclose pre-orders on Monday, following its usual pattern after a product launch.

But Piper Jaffray analyst Gene Munster said this may not happen this time because of the supply issue.

"Overall we view the trends over the weekend as an indication of solid demand paired with very limited supply, with supply being the most significant limiting factor," Munster said in a client note.

Munster, who thinks Apple will sell 2.3 million watches in the April-June quarter, expects the company to ramp up production between mid-May and June.

Analysts at brokerage Pacific Crest said their checks showed that Apple appeared to be ordering components for the watch that would allow it to make well over 20 million this year.

Reuters

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