In a report last month, IDC analysts said that the smartwatch market in the second quarter for the first time saw a year-over-year decline, driven in large part by a drop in shipments of Apple's devices. Worldwide shipments of all smartwatches fell 32 percent from the same period last year. Apple was hampered because the numbers in the second quarter were compared with those in the second quarter a year ago, when Apple first launched its Apple Watch.
Although Apple was the only vendor in the top five to see a shipment decline during the quarter, the company was still by far the leader in the space, with 47 percent market share. Samsung was next with 16 percent, followed by Lenovo, LG Electronics and Garmin. Intel's Basis business was in the "others" category, which accounted for 16 percent of the market.
The analysts said they expect growth in the market to be "muted" though they are forecasting growth to return next year.
"What will bear close observation is how the smartwatch market evolves from here," Ramon Llamas, research manager for IDC's Wearables group, wrote in a statement. "Continued platform development, cellular connectivity and an increasing number of applications all point to a smartwatch market that will be constantly changing. These will appeal to a broader market, ultimately leading to a growing market."