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Report suggests Apple Watch will be a flop

The Apple Watch may not sell, according to a recent study that details how consumers decide on whether or not to purchase something.

The report found three key factors to determine a consumers purchasing decision; cost, compatibility, and value. Similarly consumers have an "unwillingness to pay proposed sales prices for new-to-the-world products, particularly at price points over $200, reflecting mainstream market versus early-adopter reactions."

The Apple Watch's price will be around $349 (£216) at release, which may prove to be too rich for some. Particularly with the iPhone 6 costing from £539 to £789, it may take the average consumer a while to amass the funds required for both devices.

Read more: iPhone 6 and iPhone 6 Plus vs iPhone 5C specs: Smartphone specs compared

First Insight's report also found that what a wearable is compatible with can make or break a sale. The Apple Watch works with iPhone 5 models and above, which currently account for 58.3 per cent of all iPhones in the wild. Many may consequently forgo the iPhone 6 and purchase the Apple Watch instead to enhance their iPhone's feature set.

However one of the most important influences in making a buying decision is the value prospect presented, Jim Shea, CEO of First Insight, explains: "The value quotient — the combination of price and features — is a better predictor of whether or not a product will sell."

A spokesperson for First Insight provided this market analysis: "Our data showed that positive consumer sentiment alone doesn't match up with the likelihood that a product will sell or not — not a good sign for the mixed feedback on the iWatch so far."