Apple Watch Will Be More 'S' Than 2

When it comes to Apple Watch capabilities, consumers commonly raise two issues, said Charles King, principal analyst with Pund-IT.

"There's a need for the watch to perform standalone tasks, tasks that can be done without being tethered to a smartphone, and there's a desire for more compelling gotta-have features and functions," he told TechNewsWorld.

"Apple's greatest successes -- the iPod and iPhone -- essentially reimagined and rejuvenated product categories that already existed but were stuck in the doldrums," King noted.

"Apple's magic seems distinctively lacking in its smartwatch efforts," he said.

That may be why Apple Watch shipments have been modest. Kuo predicted a decline in watch shipments this year, to 7.5 million units shipped from 10.6 million in 2015, AppleInsider reported.

"Absent dynamic new features or functions, I believe that slowing or declining sales of the Apple Watch are likely," King said.

Greater Segmentation

However, it is "incredibly unlikely" that the watch would ship fewer units in 2016 than in 2015, maintained Daniel Matte, an analyst with Canalys. Twelve million units shipped last year, he estimated, not the 10.6 million Kuo reported.

"We think the first version of the Apple Watch got quite a few things right," but "future versions will be much more polished products," he told TechNewsWorld.

"We remain quite bullish and think that smartwatches are the next big category in consumer electronics following tablets," Matte added.

Apple may just be starting to get the hang of the smartwatch market.

"I believe that we will see continued segmentation with Apple bringing out different models at different price points with specific use cases in mind," said Patrick Moorhead, principal analyst with Moor Insights & Strategy.

"I would expect an entry-level fitness solution and also a very high-end version. I would also expect a larger version that is more luxurious and can do everything your phone can do," he told TechNewsWorld.