The undisputed leader of the connected watch market in the world, Apple should soon face a sharp slowdown in shipments of its Apple Watch. If the iPhone 14 will be untouchable with ever-increasing popularity, the success of the Apple Watch Series 8 and previous generations should weaken due to inflation.
A market share that will fall
Overall, 2022 will have been a great success for Apple, at least for iPhone and Apple Watch sales. According to recent statements by several analysts at JP Morgan, Apple can expect strong demand for the iPhone 14 (despite the price increase to be expected), which should not be the case for the Apple Watch.
Indeed, analysts believe that due to inflation and rising prices on the iPhone 14, a large number of consumers will reconsider their decision buy an Apple Watch or renew the one they already own.
The analysts behind this report do not mention a painful or chaotic moment for the Apple Watch, but weaknesses in sales which will probably have to be filled by promotions at resellers to allow stocks to be sold more quickly.
Here is what the analysts say:
Pricing is a key point in a macro [économie] difficult which includes inflationary pressures and a decline in consumer spending, but we believe this weighs even more heavily on wearables which are viewed by consumers as more discretionary purchases compared to the iPhone.
When it comes to the iPhone 14 price increase, JP Morgan analysts are adamant even though Apple doesn’t want to raise prices, the company has no choicebecause it will reduce its profit margin and cause a drop in its turnover.
With inflationary pressures on the entire supply chain, the consensus expects price increases on the iPhone 14 product line over the iPhone 13. We expect that Apple is taking a more nuanced approach to keep iPhone 14 and iPhone 14 Max prices “low-end” while increasing them for the iPhone 14 Pro and iPhone 14 Pro Max.
Apple to reveal iPhone 14 and Apple Watch Series 8 at Apple Event tomorrow evening from 7 p.m.. We will know at this time if the prices really increase to more than 1000€ for the minimum configurations as disclosed by a source who confided in iPhon.fr last night.