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SmartWatch Market Declined 52% for Q3 2016. 

By |November 16th, 2016|Apple, Outside Sources*, REPORTS & ANALYSIS, Smart Watches, Uncategorized|

It seems like smartwatch fans are numbered.

Smartwatch sales declined 51.6% worldwide to 2.7 million in the third quarter, compared to 5.6 million shipments a year earlier, according to a new report published by International Data Analytics today (Oct. 24). Much of the downturn can be credited to the market leader, Apple, which saw sales of its Apple Watch plummet over 70% to 1.1 million.

With 41% of the market share, Apple is still leading. However, it’s a huge slip from the 72% it captured in the third quarter of 2015.

A big part of the issue for Apple is timing. The refreshed Apple Watch was released just two weeks before the end of the quarter, while the original watch debuted in May 2015. With “lower price points and improved experiences, Apple could be heading for a sequential rebound in 4Q16,” IDC wrote in its report.

Beyond Apple’s limited sales, Google and Samsung didn’t release wearables during the third quarter, which “left vendors relying on older, aging devices to satisfy customers,” noted Ramon Llamas, research manager for IDC’s Wearables team.

While devices like the Apple Watch come loaded with a variety of apps, the only clear use cases so far for such wearables are receiving notifications and tracking fitness activities. For some users, the former is less of a convenience and more of an anxiety-inducing function.

But health is showing showing real promise. Doctors have recommended that patients use fitness trackers, and, last month, Aetna Insurance announced plans to subsidize the Apple Watch for its customers.

For further proof that smartwatches are gaining traction as fitness devices, just look to Garmin. The company’s whopping 324% increase in sales from the year prior is “thanks to its growing list of ConnectIQ-enabled smartwatches and the addition of the fenix Chronos,” according to the report. Instead of trying to diversify into multi-purposes devices, like the Apple Watch, Garmin focused solely on health and fitness. The 600,000 units it shipped in the third quarter were second only to Apple.

Apple seems to be going in this direction as well, positioning the latest iterations of the Apple Watch to fitness aficionados with waterproofing, built-in GPS, and more health and fitness-oriented apps. There’s even the Apple Watch Nike+ aimed squarely at the running set.

All this represents a much more targeted audience than Apple typically goes after, but it could prove to be one that clearly sees the utility in a product that’s had trouble proving its worth

Survey by BI, Indicates the SmartWatch Market to be Small

By |December 1st, 2014|Outside Sources*, REPORTS & ANALYSIS, RESEARCH & DEVELOPMENT, Surveys & Articles|

A global survey BI Intelligence conducted among Business Insider readers during October 2014 illustrates what consumers are looking for in a smartwatch, and whether they intend to purchase one. We generated over 2,000 responses from Business Insider readers, who tend to be young, affluent professionals — ostensibly the target market for a smartwatch.

Will people buy smartwatches?
What is it about smartwatches that interest them?

Here are the main takeaways:



  • The smartwatch only appeals to a minority of possible purchasers.

    Of 1,678 respondents who said they planned to buy a new phone in the next six months, just one-fifth said they are interested in buying a smartwatch to pair with their phone.

  • Apple has done a better job than competitors selling the smartwatch.
    Prospective iPhone buyers were significantly more interested in a companion watch than likely Android purchasers. About 31% of those who said they would buy an iPhone in the next six months plan to buy a smartwatch, more than double the proportion among those buying Android phones.
  • These are the top use cases among likely purchasers:
    Almost 40% of nearly 400 likely smartwatch buyers told us that the most important benefit of the device is its ability to funnel phone notifications, information, and other content if users happen to be away from their smartphone. Another one-fourth of our respondents said they already wear a watch and the added functionality of a connected watch appeals to them. Health- and fitness-tracking was another popular reason.
  • But there is no killer app, and hence most people don’t see the point.
    Overall a majority of people still don’t see the point of these devices. This is the reason 51% of those uninterested in smartwatches gave us for why they wouldn’t buy the device. At a distant second, 13% of respondents said they just didn’t like wearing a watch. Until consumers see a clear reason why smartwatches will improve their lives and productivity, the smartwatch category will remain small.


For a full smartwatch survey data and analysis on the wearable computing
and smartwatch markets,
 
sign up for a trial membership today.

 

Of course, the next six months could bring about new applications for smartwatches generally and the Apple Watch in particular, but the data shows that the smartwatch still has a long way to go before it is seen as an essential consumer electronics device.

http://www.businessinsider.com.au/wearable-smartwatch-market-report-2014-11