3Q16 smartwatch sales registers sharp decline, according to IDC
This was not expected. In the third quarter of 2016, the sales of smart watches tanked, registering 51.6% of decline in sales. One key reason is 71% drop in sales of smart watches. Garmin registered 324.2% growth but still stayed in #2 position. Samsung took third spot, with 0.4 million unit shipped. Lenovo and Pebble too registered declined but managed to hang on to fourth and fifth spots.
“The sharp decline in smartwatch shipment volumes reflects the way platforms and vendors are realigning,” noted Ramon Llamas, research manager for IDC’s Wearables team. “Apple revealed a new look and feel to watchOS that did not arrive until the launch of the second generation watch at the end of September. Google’s decision to hold back Android Wear 2.0 has repercussions for its OEM partners as to whether to launch devices before or after the holidays. Samsung’s Gear S3, announced at IFA in September, has yet to be released. Collectively, this left vendors relying on older, aging devices to satisfy customers.”
“It has also become evident that at present smartwatches are not for everyone,” said Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers. “Having a clear purpose and use case is paramount, hence many vendors are focusing on fitness due to its simplicity. However, moving forward, differentiating the experience of a smartwatch from the smartphone will be key and we’re starting to see early signs of this as cellular integration is rising and as the commercial audience begins to pilot these devices.”
Apple’s shipments went down from 3.6 million in 3Q15 to just 1.1 million. We should see a bigger shipment numbers in 4Q16 as the new 2016 edition and lower priced 2015 editions will see improved sales. Garmin on the other hand had reasonable increase in sales, but given that this is still a niche segment, it propelled the company to #2 behind Apple. Samsung had nominal growth and dropped to third. The Gear S3 should help Samsung improve shipment numbers.
Second generation Moto 360 could not help Lenovo improve their position in smart watch market as the shipments declined to just over 100,000 units. Pebble too is struggling to sell smartwatches.
