The global smartwatch market has depicted a steep decline of 32% in the Q2 2016, reports the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker. The decline was mainly led by Apple, which registered a fall of 55% in volume to 1.6 million units. However, it still holds the top rank in the list of top vendors.
According to IDC, the vendors together shipped 3.5million units of the smartwatch in Q2 2016, instead of the 5.1 million units shipped a year ago.
Commenting on the decline held in the segment, Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers said, “Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvements in WatchOS are not expected until later this year, effectively stalling existing Apple Watch sales.”
“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,” he added.
Among the other players, Samsung holds the position #2 by shipping 600,000 units, a significant improvement from the 400,000 units shipped during Q2 2015. While Apple’s market share remains at 47%, Samsung has a share of 16%. Lenovo holds the #3 position by shipping 300,000 units, up from the 200,000 units it shipped last year during the same period. The vendor’s market share comes around 9%.
A step behind stays LG Electronics with 8% market share. LG has also shipped 300,000 units of the smartwatch. Garmin is the #5 on the list with 100,000 units, holding 4% of the market. Other vendors together make 16% of the market.
IDC noted that the market still sees the absence of traditional watchmaker brands among the leading vendors. “This seems to be changing, albeit slowly, as key vendors like Casio, Fossil, and Tag Heuer have launched their own models to the market. Still, participation from traditional watchmaker brands is imperative to deliver some of the most important qualities of a smartwatch sought after by end-users, namely design, fit, and functionality. Combine these with the brand recognition and distribution these brands already have, and it’s reasonable to expect the smartwatch market to grow from here,” said Ramon T. Llamas, research manager for IDC’s Wearables team.
IDC expects the market to be continuously evolving with the continued platform development, cellular connectivity, and an increasing number of applications. Hence, the market would mark a growth in 2017, IDC concluded.