Apple’s sales decline sends smartwatch market sharply down
Global sales of smartwatches suffer as consumers hold out for next-generation models with better features, with analysts warning of muted growth for the rest of the year
The global smartwatch market took a sharp downward turn in the second quarter on falling sales of the industry-leading Apple Watch, a new survey has shown.
Research firm IDC says global sales of smartwatches tumbled 32 per cent from a year ago to 3.5 million units.
Apple remained the market leader with an estimated 47 per cent market share, but sales fell by more than half from the same period last year to 1.6 million, according to IDC. Last week Apple also announced in its quarterly update that the company’s profits slumped 27 per cent from a year ago to US$7.8 billion on a sharp drop in iPhone sales.
Backed by Google, a Chinese AI-powered smartwatch sets its sights on the US
The other top vendors including Samsung, Lenovo, LG and Garmin boosted sales over the quarter, according to IDC, which says Apple’s momentum faded after last year’s launch and strong holiday season sales.
“This is a very cyclical market,” says IDC analyst Ramon Llamas, who notes that consumers appear to be waiting for a next-generation Apple Watch with improved features.
“Apple still maintains a significant lead in the market and a decline for Apple leads to a decline in the entire market,” says IDC’s Jitesh Ubrani. “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.”