Apple Watch Sales Fall 55% in Q2 as Consumers Wait for New Version
In the second quarter, the global smartwatch market fell 32 percent from the same quarter in 2015, marking the first-ever smartwatch shipment decline.
Global shipments of the Apple Watch have fallen 55 percent since it debuted one year ago as consumers wait for an upgraded model to go on sale, while the overall smartwatch market has dropped by 32 percent in the same time span, marking the first worldwide decline since the devices began appearing on the market a few years ago. IDC reported both declines in a new study released June 21 as part of the analyst firm's Worldwide Quarterly Device Tracker research. "Smartwatch vendors shipped 3.5 million units in the second quarter of 2016, which was down substantially from the 5.1 million shipped a year ago," the report states. Apple shipped 1.6 million watches in the quarter, but was the only vendor in the IDC study to see a drop in its shipments. "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," Jitesh Ubrani, a senior research analyst for IDC Mobile Device Trackers, said in a statement. "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."
Samsung saw its worldwide Android smartwatch market share increase in the second quarter to 16 percent from 7 percent in the same quarter in 2015, while Lenovo saw its global market share rise to 9 percent from 3 percent a year ago, according to the study. LG Electronics saw its smartwatch market share rise to 8 percent in the second quarter from 4 percent a year ago, while Garmin's market share increased to 4 percent from 2 percent in 2015.