When Apple posted its Q4, 2016 earnings yesterday, it noted that the Apple Watch broke new ground with record revenue and the company just could not make enough of the wearables to keep up with the demand. While Apple did not reveal any sales number for the Apple Watch, Strategy Analytics puts the number at an estimated 5.2 million units.
This allowed Apple to capture 63.4 percent of the smartwatch market share in Q4, 2016, which is 6x times more than Samsung. The latter shipped only 800,000 smartwatch units in the final quarter of 2016 to capture 9.8 percent of the market, down from 16 percent in the same quarter in 2015.
Cliff Raskind, Director at Strategy Analytics, added, “We estimate Apple shipped a record 5.2 million smartwatches worldwide and captured a dominant 63 percent marketshare in Q4 2016, rising a steady 2 percent annually from 5.1 million units in Q4 2015. Demand for Apple’s new Watch Series 2 as a holiday-season gift in Western markets was surprisingly strong and it enabled Apple to clear a large backlog of smartwatch inventory during the quarter. ”
Others like Fitbit, Garmin, Pebble, and Huawei shipped a total of 2.2 million units for a combined 26.8 percent of the market share. Overall, the smartwatch industry posted a modest growth of 1.4 percent, but apart from Apple, almost every other major OEM has struggled to set the sales chart on fire with their products.
Additionally, as things stand right now, most smartwatches offer very similar levels of functionality. OEMs should work on adding new and accurate sensors to them to make them more enticing for customers from a health viewpoint.
How happy are you with your Apple Watch?
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