The Apple Watch Ultra is considerably more popular than the entry-level Apple Watch SE despite its high price point, according to a new report from Consumer Intelligence Research Partners (CIRP).
The report provides a detailed look at how the various Apple Watch models are performing in the market. Apple Watch Series 9, introduced in September 2023 alongside the iPhone 15 lineup, is the most popular model in the lineup as of the June 2024 quarter. It captured 43% of total Apple Watch sales in the United States, making it the top choice among customers. The Series 8, which Apple no longer sells directly but is still available through various retailers, followed with a 19% share. Combined, these two models accounted for nearly two-thirds of all Apple Watch sales during the period.
The Apple Watch Ultra and Ultra 2, which represent the high-end segment of the lineup, contributed 20% of total sales. Despite their advanced features and premium positioning, the Ultra models have a smaller market share compared to the high-end variants of other Apple products like the iPhone and iPad. For instance, premium models in these categories typically account for a quarter or more of total sales. The CIRP report indicates that the Ultra 2 had a slightly higher share than the original Ultra during the June 2024 quarter.
The Apple Watch SE held a 12% market share. This model continues to attract buyers who are looking for a more affordable entry point into the Apple Watch, yet its market presence is significantly smaller than that of the higher end models. The Nike-branded version of the Apple Watch, which is essentially a variant of the Series 8 and 9, accounted for a modest 5% of the market.
Apple's strategy of offering a range of models at different price points appears to mirror its approach with the iPhone and iPad. However, there are some notable differences in consumer behavior across these product lines. While the premium models of iPhone and iPad often capture a larger share of sales, the Apple Watch lineup sees stronger performance in its mid-range models. The CIRP report suggests that the Series 8 and Series 9, positioned as a mid-tier option in terms of pricing and features, is particularly attractive to consumers, while the Ultra models, despite their higher price and more advanced capabilities, appeal to a smaller segment of the market. The low-cost Apple Watch SE and Nike models appeal to an even smaller segment of the market.
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The SE's value proposition is off: it is not cheap enough to compete with the bottom; expensive enough people would prefer the features in the general consumer (now mid-tier) offering.
At this juncture, for many of Apple's products they offer something at a price point because the board wants to see it but it practically only exists to stair-step you up the lineup to spend as much money as possible.
I wanted a watch, but a 1 day battery life simply isn’t anywhere near acceptable for me and I didn’t want to be worrying too much if my wrist grazes a door or something, so I wanted the titanium casing and sapphire glass. Yeah, Ultra is kinda expensive, but it checks all the boxes for me, so whatever, since I can afford it.
The flat screen makes all the difference to me. Easier for me to see the entire screen clearly in strong light, and easier for me to interact with the screen.
