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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ApplesamsungCanalysFitbitsmartwatchGear S3

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?