Apple Needs to Slash Apple Watch Prices to Sell More, Says Telsyte

According to Australian analyst firm Telsyte, the Apple Watch should cost no more than $210 (AU$300) and that the company should slash the prices of its smartwatch as soon as possible otherwise it will continue to see the product’s sales in the wearables market fall, ZDNet reports. The firm notes that in the Australian market, only 205,000 of the wearable devices were sold during the first six months of 2015, adding that the negative growth in the smartwatch sector is due to a lack of apps, as even 10% of those who had purchased the devices, have stopped using them.

Apple watch selling points

While the Apple Watch continues to dominate the Australian smartwatch market with 64% share, Telsyte claims that this was mainly due to the absence of new Android smartwatches being launched. Telsyte managing director Foad Fadaghi said that the Apple watch remains a luxury gadget, with its sales price “typically more than twice the average of rival Android-compatible smartwatches”, adding that its premium price is also impacting the sales.

“It is difficult to see mass market consumers paying as much as premium tablets or smartphones for wearable technology that does not have significant new or unique features.”

“Smartwatches are not selling as fast as lower-cost fitness bands, and our surveys show consumers are, in majority, not willing to pay as much as a premium phone or tablet for a smartwatch,” he told ZDNet. “The ideal price point, we think, is AU$200 to AU$300 for both individual buyers and for the gifting market.”

Earlier this year, Telsyte had stated that the popularity of wearables was such that it had the effect of decreasing sales in tablets.