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IDC Reports Indicate an Overall Dip in the Smartwatch Shipments, Apple Still Leads the Pack

While many folks out there are watching for an iterative upgrade of the Apple Watch the smartwatch market has seen a slump. The shipping figures for Q2 2016 is 3.5 million which is a sharp decline from the previous year’s Q2 2015 at 5.1-Million. The drop in the shipping figures translates into a -55% Year-Over-Year growth.

apple watch front face

While often the numbers don’t lie they also don’t reveal the complete picture as well. The Apple Watch was announced in April last year and obviously, the demand for the same had been soaring sky high during that particular Quarter (Q2 2015). Subsequently, the demand must have subsided. On the hitherto, we also need to consider the fact that Smartwatch is a much smaller subset of the wearable industry and doesn’t include fitness bands.

idc_smartwatches

It is interesting to see that despite losing the market share Apple still has a grapple on almost half of the market share. Samsung has also climbed up the chart with an 7% increase in the numbers and this we feel can be attributed to the Gear S2 and its close tie-up with the American carriers. Lenovo seems to be the largest gainer as it tripled its share but again the volume of products shipped is still on the lower spectrum. Don’t be surprised, the Spike in Lenovo shipments is due to the Moto 360 and not due to any Lenovo smartwatch.

LG has also seen a small spike and is most likely to leverage the 4G LTE feature in the Urbane after Android 2.0 is released. Smartwatches are yet to become mainstream and the reason first generation smartwatches had a sluggish journey is because they still heavily relied on the smartphones. It was the LG Urbane that first came with an LTE option and Pebble 2 followed with a standalone GPS. The rumored Nexus watches are also something that might cause a sudden spike in the overall Smartwatch sales numbers.




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