Apple Watch sales have stumbled and the entire smartwatch market has seen a decline of 32 per cent: IDC. (Source: AP)
Apple remains market leader, but was the only vendor in top five to see an annual decline in shipments, adds the IDC report. The smartwatch market has seen a 32 per cent decline in shipment in second quarter of 2016, reports research firm International Data Corporation (IDC).
IDC’s data shows smartwatch vendors shipped 3.5 million units in the second quarter of 2016, much below the 5.1 million shipments in Q2 of 2015. However, Apple which saw its first annual decline in shipments, is still the number one vendor with 1.6 million watches shipped.
According to IDC, Apple Watch is still the same device that was launched in 2015, and the comparison for year-over-year is with the initial launch quarter.
IDC analysts say consumers are holding off purchase for new smartwatches as they are expecting new devices to be launched.
“Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvements in WatchOS are not expected until later this year, effectively stalling existing Apple Watch sales,” said Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers.
Ubrani also adds a decline in Apple’s sales means a decline for the entire market, highlighting just how strong a grip the Cupertino-tech giant has on this segment.
“Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market. Every vendor faces similar challenges related to fashion and functionality, and though we expect improvements next year, growth in the remainder of 2016 will likely be muted,” added Ubrani.
IDC also adds that participation from traditional watchmaker brands is imperative boost the market growth as these players can bring qualities like design, fit, and functionality to smartwatches.
“To date, only a small handful of traditional watchmaker brands have entered the smartwatch market, trailing far behind their technology brand counterparts,” said Ramon T Llamas, research manager for IDC’s Wearables team. “This seems to be changing, albeit slowly, as key vendors like Casio, Fossil, and Tag Heuer have launched their own models to the market.”
In terms of individual vendors, Apple is on top and far ahead of the competition. IDC credits “pure exposure of the device and brand through tactical marketing” as giving Apple Watch the edge over other players. Samsung is number two with Gear S2 boosting sales for the company in this segment.
Lenovo with its Moto 360 watch are at number three. IDC says the Moto 360 is the brand for people interested in Android Wear-based circular smartwatches.
LG with its Watch Urbane has managed to come in at number four. IDC notes both Samsung and LG are relying on partnering with telecos, and have launched LTE capable versions of the devices, which has boosted sales.
Garmin was number five in the list of top vendors with smartwatches like Fenix 3 boosting sales.
