But CEO Meg Whitman tells investors the software maker is entering 2015 with the "strongest portfolio" in a decade.
Apple posted quarterly results on Tuesday that virtually any other company would kill for. Yet CEO Tim Cook still found himself on the defensive.
Outside of Apple itself, Best Buy will be the first major US retail chain to sell the watch as Apple tries to expand its availability.
The forecast from BMO Capital Markets analyst Keith Bachman is up by 10.6 million units from his prior estimate, but sales for the December quarter will depend in part on China.
The situation is so bad that Sony is suspending its dividend -- the first time it won't be making a payout since it listed in 1958.
Although its market share fell last quarter while Apple's share rose, Samsung retains the crown for the world's leading smartphone vendor, says research firm IDC.
The tech giant continued to benefit from booming iPhone sales during the June period, but it didn't sell as many as analysts had expected.
Sales of the company's blockbuster smartphone will likely remain strong -- even during the lowest sales period of the year. But a slowdown in China's economy could hit Apple.
Speaking to reporters, the new Sony TV chief believes that his division can end the fiscal year in the black, despite 10 years of losses.
Shipments of Apple's wearable hit 4 million last quarter, according to an estimate from Strategy Analytics, giving Apple the lion's share of the smartwatch market.