Apple Watch Fails to Reach Supplier 'Break-Even Volume' of 2 Million Per Month

Apple Watch Fails to Reach Supplier 'Break-Even Volume' of 2 Million Per Month

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Sales of the Apple Watch have failed to reach supplier 'break-even volume' of two million units per month, reports the WSJ.

The news apparently comes from Taiwan's Advanced Semiconductor Engineering Inc., the company that is responsible for putting the watch's many chips and sensors into a small case, known as a system-in-package, or SiP.

Bernstein Research analyst Mark Li says that on a conference call, an ASE subsidiary told investors that it didn't reach its "break-even volume" of two million units per month in the second quarter. To make matters worse, the ASE unit doesn't expect to reach that level during the third quarter either, which is typically a busy production period before the holiday sales season. It wouldn't commit to reaching it during the fourth quarter either.

"The shortfall of Apple Watch is a disappointment," Mr. Li wrote in a note to clients. "We came in with a low expectation but below break-even still surprised us."

It's considered unusual for a company like ASE not to reach break-even volume, especially in the third quarter on a new product. Li expects the company to fall short of his previous forecast of 18 million units this year.

Apple has refused to break out sales numbers for the Apple Watch saying that it doesn't want to provide information that may help its competition. However, it did say that the Apple Watch sold better than internal forecasts despite limited supply.

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Apple Watch Fails to Reach Supplier 'Break-Even Volume' of 2 Million Per Month
King Rollo - August 4, 2015 at 10:06pm
The break even has. Itching to do with the watch.. It has everything to do we what other device it can be used in and how well they can refine the production process... Apple watch outsold all android wear on day one.. It's not a sales issue..
Zig - August 1, 2015 at 7:01pm
A 400$ useless device providing notifications and mirror screen from a cell phone with a 12 hours battery and 200$ wristbands. And you still need to carry the phone. You bet its not selling enough. Wow. Apple completely lost it. Thats sad.
Stealther - August 2, 2015 at 12:49pm
Totally agree. Bought an Apple watch and now collecting dust. Useless piece of device. I'm using my Mont Blanc watch agai
Happy User - August 2, 2015 at 9:31pm
I never end a day with less than 35% battery, and that's with 1.5 hours of exercise. Sport Band = $49. Use it for tracking exercise in addition to viewing notifications without having to take my phone out of my pocket. Use it to control remote devices while driving. It's not cool, it's a bit thick aesthetically for my tastes, but it's very useful and also fun. Like everything else in life, it is useless for those that don't need it, and useful for those that do.
Bigjiba - August 3, 2015 at 12:52am
That's some good feedback thanks. How is the heart rate accuracy
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