There is extremely high interest in the Apple Watch smartwatch in China, helping drive sales of the wearable, according to a survey from UBS. The company previously estimated there would be 40 million Apple Watch units sold during the company's fiscal 2016, but has decreased that number down to 31 million units.
"It's finding that Apple continues to be extremely strong, the stickiness is very clear, and it's China, China, China," said Steve Milunovich, managing director at UBS, in a statement on CNBC's "Squawk on the Street." "We're finding that Apple's retention rate is very strong in China, and we're also finding that actually Apple Watch interest is highest in China relative to the other five countries that we surveyed."
Prior to the global launch of the Apple Watch, analysts expected China would have a major role in selling Apple Watch units. Consumers are frustrated with supply problems related to the Apple Watch, with eight percent of consumers claiming they may purchase a watch model.