The 29-year-old from Greenock was far too sharp and powerful for his limited opponent who collapsed to the canvas after taking a ferocious left hook 36 seconds into the second round.
Simpson said: "I need bigger and better things.
"I have already won the British and Commonwealth title, and have the Celtic, so the European is the only way forward."
It had not taken long for Simpson to show his superiority.
He forced the pace from the first bell and had Davies on the back foot with some powerful left jabs with the occasional right also finding the target.
The Welshman appeared to be there for the battle, though, and tried to fire off a few shots of his own but it quickly became clear that he was out of his depth as he was despatched by an explosive Simpson.