Apple Inc. (AAPL) Ordered Over 5 Million Watches [Report]

Apple Inc. (NASDAQ:AAPL) will soon launch its much-awaited wrist wear, and it has ordered five to six million units of its three Apple Watch models collectively for the first-quarter, says a report from the Wall Street Journal citing sources familiar with the matter. The product is scheduled for release in April this year.

Comparatively fewer units ordered for high-end version

Of the number ordered, half the watches will be the entry-level Apple Watch Sport model and one third will comprise of the mid-tier Apple Watch, according to the journal. Orders for the 18-karat gold casing model i.e. the Apple Watch Edition are smaller in comparison with the other models for the first quarter. However, from the second quarter, the company will manufacture more than one million units per month of the premium version. Apple Inc. (NASDAQ:AAPL)’s sales are growing at a very fast pace in China and the demand for the high-end watch will be stronger there, expect analysts.

Apple Watch Sport will be available at a starting price of $349, but the prices of other models have not been disclosed by the company as yet. The iPhone maker offered Mac Pro computer at a price of $4,000, but it is expected that the Apple Watch Edition will be offered at a higher price than that.

Will Apple Watch outsell rival products?

Apple Watch is the company’s first all-new product since the iPad, and the units ordered are similar to initial sales of Apple’s last major all-new product. Apple unveiled iPad in April 2010, and in the next six months it sold 7.5 million units of the device, according to the journal. The numbers ordered by Apple, reflect that its wearable device will surpass the devices from other manufacturers. The potential competitors are Samsung Electronics, LG Electronics, Sony, Motorola and many other fitness trackers.

Apple Inc (NASDAQ:AAPL) uses its forecast for the demand for a new products before it plans the production. In case, the product sales are different than what Apple had estimated, then it alters the production plans quickly. According to the suppliers, Apple is known for continuously and quickly changing its ‘plan of record’ than other consumer-electronics companies.