Apple Inc. Watch Sales to Decline in 2016 Despite Expected Release of Apple Watch 2

Analysts believe sales of the Apple Inc. (NASDAQ:AAPL) Watch are set to drop, regardless of the new version that Apple is set to unveil.

One of the most respected analysts of Apple in the game, Ming-Chi Kuo, an analyst at KGI Securities, predicts that the number of Apple Watch shipments for this year will decrease, down to 7.5 million shipments for 2016 from 2015’s 10.6 million units.

The fall is greater in perspective because the number of months compared in 2016 is higher than those that are compared to in 2015. In 2016, the number of shipments is for the whole year, while in 2015 the analyst only examines eight months.

Several reasons are to blame for the decline in shipments according to Kuo, some of them including the Apple Watch does not have killer apps that can intrigue users; the Apple Watch is still young and not mature yet on the market. Other reasons cited for the decrease is the users dependence on an iPhone to use functionally the Apple Watch.  The form factor is also said to have significant room for improvement, and the battery life is said to leave a lot to be desired.

The next version of the Apple Watch, the Apple Watch 2 is thought to be unveiled in September along with the iPhone 7, which would mean it goes on sale in the third quarter.

Sources say the new Apple Watch 2; will have “spec improvements with limited changes to form factor design.” This might mean the new version might just be similar to a new S version of the iPhone, where Apple only improves the internals of the phone but do not do anything with the outside.

Previous rumors about the Apple Watch 2, include that the new version would get FaceTime capabilities, increased and improved Wifi accessibility, and also get more models than its predecessor.

The input of a FaceTime camera is funny on the look, but it might be a good idea for the company, and help it improve the sales of the Apple Watch. QZ had this to say about the Apple Watch, “A year after its launch, it’s clear no one needs any Apple Watch,” however the in the story says one thing they like about the Apple Watch, which is to pay using Apple Pay. The only problem being you still need your iPhone with you, which in any case would render the Apple Watch useless at that point.