Smartwatch – Sales on a Decline for the First Time

A report from IDC’s smartwatch sales for the second quarter of 2016 has just been published, and the news isn’t particularly all that great, especially when you consider the Apple Watch. As per the latest report, the worldwide sales of the wearable tech have slid down by 32-percent within the second quarter of 2016, when compared to the same year-ago period. Much of the drop that took place is because of the decline in Apple Watch sales, according to IDC. The research company estimates that Apple has been able to ship 1.6-million models of their famous wearable tech within the quarter, which is down from 3.6-million in the previous year.

Smartwatch - Sales on a Decline for the First Time

Apple Smartwatch Sales One of the Leading Causes of Slump

Overall, smartwatch manufacturers shipped a total of 3.5-million units in the April-to-June quarter of 2016, according to IDC. This is in comparison to a total of 5.1-million within the year-ago quarter. Even though the Cupertino, California-based tech manufacturer is still seen as the leading vendor in this sector, Apple was the only one out of the top five makers of this wearable tech that did see a drop in sales. As for the other four companies, which are Samsung, LG, Lenovo, and Garmin, they all saw a significant growth in percentage, as per IDC.

Despite all of this, Apple still has a large lead in terms of market share. It has a large 47-percent chunk of the proverbial pie. However, it should be noted that this is down from the 72-percent of the market share Apple commanded for the year 2015. Samsung, which is Apple’s closest company in terms of sales, holds down to only 16-percent market share.

So is this the end of smartwatches everywhere? Well, not quite; Prior to making you start declaring that this particular piece of technology has will rest in peace anytime soon, there are still some things to keep in mind. For instance, IDC explains that “the year-over-year comparison is to the initial launch quarter of the Apple Watch.” Because of this, it skews some numbers against Apple. Furthermore, IDC takes note that the company has not yet released an update towards the Apple Watch’s hardware since then, which may be a primary reason as to why demand could not grow further. As such, there are many who are just waiting for the next Apple Watch to be released into the market.

Also, it should be noted that Apple did not include their smartwatch  sales within its financial results, and this complicates matters quite a bit when you’re trying to estimate sales. Furthermore, it is also deemed that these are still the early days of this technology, and there are still relatively a small number of companies as of late that are producing them.


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