Briefing: Pegatron's People, etc.

01.

Perception is reality? A spate of reporting on the now 1-year-old Apple Watch yesterday, teed off (and grounded to some degree) with Daisuke Wakabayashi's post for the WSJ: "Apple’s Watch Outpaced the iPhone in First Year":

So far, the numbers appear solid. Apple doesn’t disclose sales, but analysts estimate about 12 million Watches were sold in year one. At an estimated average price of $500, that is a $6 billion business—three times the annual revenue of activity tracker Fitbit Inc.

By comparison, Apple sold roughly six million iPhones in its first year. As a new entrant, the Watch accounted for about 61% of global smartwatch sales last year, according to researcher IDC.

02.

Much to Wakabayashi's point, M.G. Siegler adds some "flop" context:

Last year, Rolex did $4.5 billion in sales. A solid year for the premium watchmaker. Of course, it was no Apple Watch. That business did roughly $6 billion in sales, if industry estimates are accurate.

The point here isn’t to compare the two devices — an Apple Watch is just about as comparable to a watch as an iPhone is to a phone. But it does provide an interesting context for Apple’s fledgling business — a new product category which has come under a lot of scrutiny since its launch a year ago. Many have called it a “flop,” which, again, is interesting in context.

03.

Bloomberg's Shai Oster reminds us that iPhones are made by incredibly hard working human beings who will never have the time to use the devices they can't afford anyway:

One improvement Pegatron executives were eager to share was increased income transparency. Employees can now check their hours, pay stubs, and monthly lodging and food expenses at touchscreen terminals throughout the campus. Including overtime, take-home pay averages 4,200 yuan to 5,500 yuan ($650-$850) a month. One employee, who helped workers access the automated information stations, showed her base salary was 2,020 yuan. An iPhone 6 in China costs 4,488 yuan.

04.

Apple highlights Touch ID and 4K video in two new iPhone 6s ads. "Oysters" is pretty cute, "Fingerprint" — meh.

05.

Today Apple announces earnings for its 2016 second-quarter — which should be interesting from a market/trading/speculation perspective given analysts are expecting year-over-year drops in both revenue and iPhone sales. You can tune into Apple's earning call today at 5:00 P.M ET here. Apple (AAPL) went largely unchanged yesterday, down $0.60 (0.57%) to $105.08.