Published in IoT

Apple’s poor sales drag down Smartwatch industry

by on22 July 2016


Sanity starting to be restored

After dragging up the smart watch industry thanks to its legions of fanboys who will buy any old rubbish provided it has an Apply logo, Jobs’ Mob is causing it all to crash again.

For those who came in late, after Apple invented the smartwatch two years later than its rivals, it was supposed to sell millions of them. To be fair it did reasonably well considering its product was out-of-date and pretty much useless. It sold about six million of them to the loyal fanboys base who would buy a dog turd if it had an Apple logo. Smartwatches were a small market and six million was rather a lot.

But this figure was well below the 40 million that some analysts claimed it would sell. The smartwatch got bad reviews and lacked most of the functionality that its rivals had. It was also expensive.

Apple appears to have lost interest in the devices It fails to mention them in polite company and rumours of “innovations” of the tech are few and far between. This has resulted in the smartwatch industry which was propped by Apple’s interest taking a battering.

Vendors shipped a total of 3.5 million smartwatches worldwide last quarter. This Q2 2016 figure is down 32 percent from the 5.1 million units shipped in Q2 2016, marking the first decline on record.

The figures don’t count basic bands sold by companies like Fitbit so Apple is the undisputed leader. The latest quarterly figures come from IDC, which said that Apple’s market share decreased 25 percentage points (from 72 percent to 47 percent) and it shipped less than half the smartwatches (1.6 million). But the company still holds almost half the market, with every other vendor shipping fewer than a million units.

Samsung gained 9 percentage points (from 7 percent to 16 percent), thanks to shipping 200,000 more units compared to the same quarter last year. IDC attributes the gain to solid distribution though American carriers. The Gear S2 lineup is Samsung’s biggest success and doesn’t appear to depend on the company’s smartphones.

Lenovo gained 6 percentage points (from 3 percent to 9 percent), shipping 100,000 more units and jumping into third place. IDC believes this is thanks to the company’s Motorola brand moving quickly into smartwatches and becoming the de facto Android Wear choice for round form factors.

LG gained 4 percentage points (from 4 percent to 8 percent), also shipping 100,000 more units but slipping to fourth place.

Garmin gained 2 percentage points (from 2 percent to 4 percent), despite flat shipments. Its Connect IQ-enabled devices remain niche, as they mainly only target athletes.

Of course the Tame Apple press claims all that will change when Apple releases its refresh of the watch which has all the features that were missing when the Smart Watch launched before. However even if it does happen this time, the technology is still two years too late and fanboys are going to find it hard justifying an upgrade to their parents. They might have to take on another paper rounded to pay for it.

All this indicates that after a period of Apple bloat, some sanity is being restored to the smartwatch industry which is, and will always be, niche.

Last modified on 22 July 2016
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