Sales of Apple Watch Decline 90%
According to a market-research report by Slice Intelligence based in California, Apple Watch sales have declined by 90 percent since the new gadget went on sale in April. The data showed that since the initial launch hype, Apple (AAPL, -0.25%) has been selling less than 20,000 watches a day in the U.S. On some days, this number is even lower than 10,000 units. According to estimates by Slice, in its opening week, over 1.5 million Apple Watches were sold, which was an average of approximately 200,000 units a day. Added to this decline, the majority of the Apple Watches currently being sold are also at the lower end in terms of cost. That is, more Sport version watches are selling at around $349 as compared to the more advanced models that start at $549. In case you were wondering, in terms of Apple’s high-end gold ‘Edition’ model which is priced at over $10,000, Slice shows that less than 2,000 of these luxury items have been sold in the U.S. since its launch. The data provided by Slice Intelligence is calculated on electronic receipts which are sent to millions of consumers once they have made a purchase. Until now, Wall Street has attempted to calculate the success of the Apple Watch in terms of its number of sales yet the tech giant isn’t helping much by not providing any information. Interestingly, Apple has always been known in the past to update Wall Street regarding the sales numbers of their new products but this time they are not revealing anything. So do you think that investors have something to worry about?
On Tuesday, U.S. stocks took a turn and ended the trading session with modest gains. This came after a selloff in the morning while investors then reacted positively to the news that Alexis Tsipras, the Greek Prime Minister, had proposed an interim financing until the end of this month. This means that Greece has now requested additional funds and in exchange, some of the changes that were demanded from the country’s parliament, will be actioned. At the session lows, the Dow Jones Industrial Average (DJIA) declined by more than 200 points. However, the blue chip index then recovered and ended 0.5%, or 93.40 points, higher at 17,776. Following the same trend, the S&P 500 index (SPX) dropped 1 percent in morning trade and at the close of trading, the index ended up 0.6%, or 13 points, to 2,081.34. Interestingly, the decline seen in morning trade actually pushed the SPX below its 200-day moving average. This key technical level for this index was actually last breached in October last year. Also, the Nasdaq Composite index (COMP, +0.11%) ended the trading day up 0.1%, or 5 points, to 4,997.46.
It is evident that the Greece drama is positive for the U.S. dollar (USD) and on Tuesday, the currency remained broadly higher against other major currencies. This also came after data showed that in May, the trade deficit in the U.S. widened less than expected in May. According to the report by the U.S. Bureau of Economic Analysis, in May, the trade deficit climbed from $40.7 billion in April to $41.87 billion. Analysts had expected the May trade deficit in the U.S. to widen to $42.6 billion. The EUR/USD traded at 1.0940, down 1.04% and this decline came after officials in the eurozone told Greece not to expect debt relief any time soon. These officials also stated that the country needed to announce further reforms before anything concrete could be considered. On Tuesday evening, a eurozone summit was expected to take place in order to restart negotiations between Greece and its lenders. Meanwhile, the GBP/USD traded at 1.5428, down 1.15% while the USD/JPY traded at 122.19, down 0.31%. Against the currencies in Canada and Switzerland, the greenback traded higher with the USD/CAD up 0.89% to a 3-month high of 1.2764 while the USD/CHF gained 0.67% to trade at 0.9489. Also, the U.S. dollar index was at 97.29, up 0.89%.
On Wednesday, crude oil prices climbed in early Asian trade. This came in response to an industry report which showed a decline in U.S. domestic supplies. According to the data from the API (American Petroleum Institute), crude stocks declined by 958,000 barrels last week, while gasoline stocks also dropped by 2.041 million barrels. Meanwhile, last week, distillate stocks rose by 4.2 million barrels. WTI crude oil for delivery in August traded at $52.80 a barrel, up 0.89%, on the NYMEX. Meanwhile on Tuesday, Brent crude oil for August delivery traded at $56.92 a barrel, on the Intercontinental Exchange (ICE). During the trading session, Brent crude declined to a session low of $55.10 which marked its lowest level since the end of March this year.