The latest data from research firm IDC estimates that Apple has sold an estimated 1.6 million units of the Apple Watch in the second quarter of 2016. The smartwatch took the lion’s share of the smartwatch market at 47%, with Samsung coming in a distant second with 16% market share.
The Korean company managed to only ship 0.6 million units of its Tizen-based smartwatches. Lenovo, LG, and Garmin came in third, fourth, and fifth respectively, with each of them shipping o.3 million or less in the previous quarter.
Compared to the same quarter previous year, Apple Watch shipments have dwindled by over 55% (3.6 vs 1.6m). Back then, the Apple Watch had managed to occupy 72% of the market share, though its strong performance back then could be attributed to the fact that it was just launched then. The IDC report states that many consumers held off on their Apple Watch purchase due to an anticipated hardware refresh in the third quarter.
“Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvemnets 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. “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.”
The release of the final version of watchOS 3.0 and a new Apple Watch can lead to Apple’s smartwatch sales increasing in the last quarter of this year.
Overall, the smartwatch market shrank by 32% — from 5.1 million to 3.5 million — which clearly shows that consumers are losing interest in smartwatches, likely due to the lack of innovation.