Smartwatch market swells thanks to Apple, but competition remains

Vendor shipped 2.8 million Series 1 and 2 units in Q3 2016, but analysts smell competition.

The release of Apple’s new Series 1 and Series 2 smartwatch models late in Q3 of this year, saw the vendor ship 2.8 million devices.

Unsurprisingly, the boost lead to a total shipment of more than 6.1 million smartwatches for the quarter and an overall annual increase of 60 per cent.

However, according to Canalys analyst, Daniel Matte, Apple still needs to step up its marketing during the holiday shopping season.

“While the new models are selling well, there are still unsold first-generation Apple Watches in the channel,” he said.

“Q4 performance will be key to better assessing the long-term prospects of the improved watch models. Meanwhile, its renewed focus on fitness functionality puts it in more direct competition with Fitbit.

“The inclusion of GPS by Apple and many other vendors now poses a big threat to traditional GPS watches and fitness trackers."

Similarly, Canalys analyst, Jason Low, said Apple needs to improve its watch sales in major markets outside of the US and especially China, as the iPhone’s slowing momentum has affected consumer interest in Apple’s smartwatch.

“The delays to both Android Wear 2.0 and Samsung’s Gear S3 have hurt 2016 smartwatch shipments and resulted in lower growth, to be expected in a nascent market,” Low explained.

“Xiaomi’s wearables partner Huami launching its first Amazfit smart watch was an important development, bringing quality smart watches to a much lower price point of RMB799 which is about $US120.”

Canalys research has also revealed that despite Samsung’s Galaxy Note 7’s impact on its product release schedule for its smartwatch, Gear S3, the company saw a strong quarter, shipping more than 1.1 million units and landing in second place.

The analyst firm said Samsung’s success was a result of savvy smart phone bundling done via carrier channels.

Fitbit remained the world’s number three smartwatch vendor, shipping 1 million units, despite “inadequate marketing and softness in consumer demand.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags ApplesamsungCanalysGear S3Fitbitsmartwatch

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Holly Morgan
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?