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Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
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English (U.S.)
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Topic:

Apple Watch: Monthly Unit Sales Volume, Major Attributes, and Challenges

Case Study Instructions:


1)Utilizing the formula shown in Figure 1, what do you estimate is the monthly (formula states weekly but apparently it’s actually monthly) unit sales volume for the Apple watch?(for your answer/calculations, please assume MONTHLY; also disregard the regression analysis references to coefficient of determination and standard error.)
2)Please indicate the resulting market share for each of the competitors including Apple after the Apple watch introduction using the most recent annual figures and assuming that the only increase in the overall market size is due to the addition of Apple’s smartwatch.
3)Please identify the a) major attributes, and b) challenges of Apple’s smartwatch (these may be related to Apple’s watch specifically and smartwatches in general).


 

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Apple Watch
Author’s Name
Institutional Affiliation
Course Code and Name
Professor’s Name
Date

Apple Watch
Answer 1
QAM= -150,000 – 2400PAM+1520PGearS+1200PPebble-1200PiPhone6+44A (Way & Polutnik, 2017).
QAM= Quantity demanded of the Apple Watch per month.
PAW= Apple Watch price in dollars per unit.
PGearS= Samsung Gear S watch in dollars per unit.
PPebble= Pebble Steel price in dollars per unit
PiPhone6= Mid-range iPhone 6 smartphone price in dollars per unit.
A= Quarterly targeted advertising budget for the Apple Watch (thousands of dollars per quarter).
QAM= -150,000-2400($349)+1520($380)+1200($220)-1200($299)+44($15,500)
=-150,000-837,600+577,600+264,000-358,800+682,000
=177, 200.
Answer 2
Before Apple entered the smartwatch industry, its primary competitors had the following market share percentages (Way & Polutnik, 2017):
Samsung = 42% (2.15 million units sold).
Pebble = 16% (800,000 units sold).
Sony = 12% (610,000 units sold).
Motorola = 11% (550,000 units sold).
LG = 5% (270,000 units sold).
Other producers = 14% (720,000 units sold).
The following is a recent figure showing Apple’s market share annual figures after the launch of Apple Watch (Statista, 2021):

Source: /statistics/524830/global-smartwatch-vendors-market-share/
Apple Watch market share:
2015 4th Quarter = 63%
2016 4th Quarter = 63.4%
2017 4th Quarter= 67.2%
2018 4th Quarter= 50.7%
2019 3rd Quarter= 47.9%
Answer 3
Updated on
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