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Kuo: Apple Watch 2 to Feature Internal Upgrades Only, Shipments to Decline 25% in 2016

Kuo: Apple Watch 2 to Feature Internal Upgrades Only, Shipments to Decline 25% in 2016

KGI Securities analyst Ming-Chi Kuo tells investors the “Apple Watch 2” will feature upgraded internal components, but it’s exterior look will remain unchanged. He also believes sales of Apple’s wearable device will decline 25% in 2016, despite the upgrade.

Kuo: Apple Watch 2 to Feature Internal Upgrades Only, Shipments to Decline 25% in 2016

AppleInsider:

The KGI Securities analyst dished details on the next-generation Apple Watch in a research note issued on Monday, a copy of which was obtained by AppleInsider. Kuo claims that the 2016 Apple Watch will feature “spec improvements with limited changes to form factor design.”

This year’s upgrade is expected to be more of a “s” upgrade, with the focus on internal upgrades, while the external design will remain relatively unchanged. So, those holding out for a thinner profile, or a round watch face will be forced to wait until another year.

While Kuo said the internals of the Watch would be receiving all of the upgrade love this time around, he did not specify any details on what he believes will be the specifications of the upgraded components. Previous rumors have indicated a larger battery, or a display with better outdoor visibility might be in store this go-round.

Kuo sees only 7.5 million Apple Watch units total shipping in 2016, citing an “immature” market for wearable devices. He believes only 10.6 million Apple Watch units were shipped in 2015, lower than most analysts believe.

Apple doesn’t supply specific shipping numbers for the wearable device, or any of its other popular devices, saying only that sales have grown for the Watch each quarter since its Spring 2015 launch.