U.S. watch sales fell 14% in June, the most in seven years, in what may be the first sign that Apple is eroding demand for traditional timepieces, reports Bloomberg.
Retailers sold $375 million of watches during the month, 11 percent less than in June 2014, according to data from NPD Group. The 14 percent decline in unit sales was the largest since 2008, according to Fred Levin, head of the market researcher’s luxury division.
“The Apple Watch is going to gain a significant amount of penetration,” he said Thursday in a phone interview. “The first couple of years will be difficult for watches in fashion categories.”
Customers looking for a watch under $1,000 are most likely to buy an Apple Watch. NPD found that watches costing between $50 and $999 registered a drop in June but the biggest drop was 24% in timepieces costing $100 to $149.99.
Watch makers also suffered as retailers discounted their products due to their "saturation" with consumers. “In the short term, brands at accessible price points are going to have to think very seriously,” said Levin.
Are you considering an Apple Watch for your next timepiece purchase?
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Retailers sold $375 million of watches during the month, 11 percent less than in June 2014, according to data from NPD Group. The 14 percent decline in unit sales was the largest since 2008, according to Fred Levin, head of the market researcher’s luxury division.
“The Apple Watch is going to gain a significant amount of penetration,” he said Thursday in a phone interview. “The first couple of years will be difficult for watches in fashion categories.”
Customers looking for a watch under $1,000 are most likely to buy an Apple Watch. NPD found that watches costing between $50 and $999 registered a drop in June but the biggest drop was 24% in timepieces costing $100 to $149.99.
Watch makers also suffered as retailers discounted their products due to their "saturation" with consumers. “In the short term, brands at accessible price points are going to have to think very seriously,” said Levin.
Are you considering an Apple Watch for your next timepiece purchase?
Let us know in the comments!
Read More