The Apple Watch, which was released last year, has seen sales drop 55%.
Market intelligence firm IDC reports that 3.6 million orders of the Apple Watch were shipped during the first three months of its release. However, watch sales have declined to 1.6 million in the last quarter in spite of discounts.
Apple plans to release another smartwatch, the watchOS 3, with updates to its operating system this autumn. The watchOS 3 will consist of new features and improved performance. Along with the watchOS 3, Apple will return with the new Apple Watch 2 (also coming out in the fall).
Research analysts suspect that consumers have refrained from buying Apple Watches due to the anticipation for newer Apple Watches. IDC’s research manager for Apple Watches and wearables predicts that the Apple Watch market will return to its original success when the new Apple Watches come out with new applications and a cell-phone connecting features.