The latest from UBS's Evidence Lab on the Apple Watch confirmed what many already knew... demand for the new device is mediocre. Data showed Fitbit search interest this Holiday season nearly doubled the Apple Watch globally, perhaps due to the Watch's premium price. That said, Apple Watch interest is higher than for Apple TV and Beats.

Despite the tepid results, the firm maintaining our estimates for 5 million units in the December quarter and 19 million units or $18 billion for FY 2016.

Meanwhile, iPhone's competitive position remains strong with global search volume twice that of the Samsung Galaxy. In addition, Apple was the top holiday brand at one-third of search volume followed by Playstation and Xbox. However, Ancillary products - the Watch, TV, and Beats - each register less than 5% of iPhone search interest. That said, they expect a stronger halo effect over time.

While the Apple Watch is seeing limited success, UBS said they would not conclude it is a failure. There sense is that early on management cares much more about customer satisfaction than sales. Satisfaction ratings have been favorable, especially among non-tech savvy consumers. A new version is expected in March and over time they see the Watch becoming more than a nice-to-have when it acts as the interface to the Internet-of-Things.

The firm maintained a Buy rating and price target of $130 on Apple (NASDAQ: AAPL).

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Shares of Apple closed at $98.53 yesterday.