In a research note obtained by Business Insider, Kuo cuts projections for the 2016 Apple Watch Series 2 and Series 1 by 15-25%.
"We revise down our 2016F shipments projection for the entire Apple Watch line from 10.0-10.5mn units to 8.5-9.0mn units (vs. 10.4mn units in 2015)," writes Kuo. "We now predict 2016F Apple Watch sales will decline from 2015 (with shorter selling time of eight months)."
Here's what Kuo identifies as the main problems with Apple's smartwatch:
(1) a lack of killer applications
(2) inadequate battery life;
(3) heavy reliance on iPhone
(4) likelihood that multi-touch will not be the best UI solution for wearable devices.
IDC recently estimated that Apple sold 1.6 million watches in the second quarter of 2016, down 56.7% year over year.