Ever wondered how popular the Apple Watch Series 3 model is among consumers? An analyst from GBH Insights research shows that many of the owners who purchased the device are new to the platform.
According to a note written by Daniel Ives and obtained by CNBC, Apple’s new Apple Watch Series 3 is gaining “significant momentum” in the short amount of time it’s been released. Ives believes that Apple’s wearable is potentially a “game changer” when it comes to wearables.
“This data point speaks to our belief that the Apple Watch Series 3 could be a ‘game changer’ release for Cupertino to open up this wearables category for the coming years,” Ives wrote.
Ives conducted a survey and found that 70 percent of current Apple Watch Series 3 owners were not upgrading from the Series 1 or Series 2 models, while 30 Percent of Series 3 owners upgraded from a previous generation Apple Watch.
Apple released two versions of the Apple Watch Series 3 last month, one with LTE and one without LTE. What’s so special about the LTE Apple Watch 3? This is Apple’s first wearable that features LTE connectivity which means users can leave the house without their iPhone and still make/receive calls and text messages. Apple has also increased the speed on the device so users can complete tasks faster.
In Ives’s research, 80 percent of the owners would opt for cellular connectivity, which will add a little extra money on their current iPhone contract.
“Roughly 80% of consumers we have polled that are interested in the Watch are buying the new LTE/cellular version as this looks to be a major selling point for Apple Watch sales,” Ives wrote.
Ives says that Apple is likely to have low to mid-single digits since the Apple Watch only represents a small margin of Apple’s revenues.
“While Apple Watch sales still represents low to mid-single digits of overall revenue, this wearables category is an important product for Apple to further penetrate its massive consumer installed base and lay the groundwork for new product lines/technologies (e.g. AR glasses) over the coming years to complement its ‘bread and butter’ iPhone franchise growth,” Ives said.
It’s hard to tell just how well Apple’s wearable is doing since the company hasn’t released the official number of units sold. However, if Ives’s information is correct, Apple could sell 23 million units for the year 2019, and have a year-over-year growth of 21 percent.
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