Apple Watch Sales Plummet … and AAPL Investors Don’t Care

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Apple Inc. (AAPL) acolytes finally got their precious Apple Watch over the last few months. But as I stated way back in April, AAPL stock investors need to forget about Apple Watch sales as a persistent driver of performance, because this fad peripheral appeals to a small group of faithful and doesn’t have the upgrade cycle that the flagship Apple iPhone does.

AAPL stock appleThat’s not just my opinion on the smartwatch, either.

According to a just-released report, Apple Watch sales have plummeted 90% since their initial sales pop opening week, according to market research firm Slice Intelligence.

That figure adds up to fewer than 20,000 watches per day in the U.S — and on some days, the survey showed fewer than 10,000 in sales, according to the report.

Back in April, I warned that the initial demand would result in a nice short-term pop for AAPL stock and its top line … but the smartwatch would fail to move revenue significantly, and “the ability to sustain momentum after the iPhone 6 launch is much more important to the success of AAPL this year than any smartwatch shenanigans.”

This news appears to validate that view.

Apple Watch Numbers Are Insignificant Compared to iPhone

It’s not really a surprise, for anyone who follows consumer technology trends. While AAPL stock has had huge success with its iPhone in part because of a reliable upgrade cycle, other devices like the Apple Watch and even the iPad have suffered after initial enthusiasm has waned and once everyone who wanted one gets one.

Sure, AAPL has great margins on its smartwatch and a few million units is nothing to sneeze at. But keep in mind the scale of Apple and you’ll understand why the gadget is a non-factor. For instance, in its latest quarterly earnings AAPL reported that iPhone sales hit $40.3 billion in the three months that ended in March — nearly 70% of total revenue!

When you have a juggernaut like the iPhone, it’s hard for any other products to matter much. And now that the iWatch is fading, it’s even less important than it was to start the year.

Keep watching the iPhone if you own AAPL stock, and don’t think too much about the Apple Watch.

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP.

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