Apple expects smartwatch demand to exceed supply at launch

Apple said on Thursday it expected the “tremendous interest” in its new smartwatch to result in demand outstripping supply when the gadget hits stores on April 24.

Apple said it would take orders for the watch exclusively online during the initial launch period. The watch will be available for preview and preorder on Friday.

Based on a survey in the United States on consumer interest in buying the Apple Watch, BMO Capital Markets has cut its estimate for sales to 39 million units though September 2016.

Previously, the analysts had estimated sales of 55.5 million units. About 735 people responded to the survey.

The watch, the first new product to be launched by Apple under Chief Executive Tim Cook, has been given poor marks by reviewers for its relatively low battery life and slow-loading apps.

Apple is among several companies, including Samsung Electronics Co Ltd (005930.KS) and Sony Corp (6758.T), that are jumping into the nascent market for wearable devices.

The watch, when paired with an iPhone, allows users to check email, listen to music and make phone calls.

There is also an app that helps people monitor their health, for example by tracking heartbeats and footsteps.

“We believe in the next five years, the watch will revolutionize the way we interact with objects around us,” Oppenheimer analysts wrote a note on Thursday.

Apple shares were up 0.3 percent at $125.98 in early trading on Thursday.

Photo credit: Reuters/Robert Galbraith