Analyst firm KGI Securities, known for its accurate predictions and analysis of Apple products, issued a note to investors yesterday in which it revised its forecast of estimated Apple Watch shipments for the third quarter, reducing the number by as much as 30 percent. KGI Securities’ new estimate forecasts only five to six million units shipped in the third quarter, reports 9to5Mac.

KGI Securities has also reduced its annual shipment forecast by 50 percent to 15 million units, down from the 20 to 30 million units Apple was expected to ship by general analyst consensus.

Apple Watch demand is slowing

In the note, KGI Securities also suggests that demand for the Apple Watch is slowing. The analyst firm has arrived at this conclusion based on the fact that, although Apple Watch production has not increased since the wearable’s launch, shipment dates for the online orders placed has not slipped to later than June.

This noted the firm, suggests that second quarter production units are satisfying current demand.

Late last month reports surfaced that faulty taptic engines manufactured by one of two suppliers caused a severe Apple Watch production shortage. Production was moved to the other supplier, but it has taken some time to ramp up production. KGI Securities says production levels for the taptic engine will begin to improve later this month.

Apple Watch seemingly more popular with men

KGI Securities analyzed shipping times for each size of the Apple Watch – Apple Watch is available in 38 millimeter and 42 millimeter models – and determined that 80 percent of orders placed for Apple Watch comprised of the larger 42 millimeter model.

Assuming that men tend to order the larger 42 millimeter model and women tend to prefer the smaller 38 millimeter model, KGI Securities surmised that Apple Watch may be more popular with men.

This is not an exact science; however, a poll conducted by Reuters showed that the Apple Watch appealed to four percent of women compared to nine percent of men surveyed.

Apple Watch has potential, but can be improved

The note concluded by acknowledging the Apple Watch’s potential, but pointed out several areas where improvements could be made including more Watch specific apps, a more useful Digital Crown, improved battery life, more powerful processors and independence from the iPhone.

photo credit: Apple Watch Launch via photopin (license)