Apple Watch continues to lead the smartwatch market
Earlier in this series, we discussed Apple’s (AAPL) smaller yet promising businesses Apple Pay and Apple Music. The Apple Watch is another promising business for Apple. According to Apple, the Apple Watch’s first-year unit sales exceeded the iPhone’s in 2007. This was a major milestone for Apple. The Apple Watch was the driver behind Apple’s Other Products segment’s 30% revenue growth last quarter. This segment also includes accessories, Apple TV, and the iPod.
Apple has expanded the Apple Watch’s distribution to 60 countries, which is why it is the leading player in the smartwatch market. According to a report from IDC and as the chart above shows, Apple is expected to garner half of the smartwatch operating system market in 2016, followed by Google’s (GOOG) Android Wear. It is followed by the Tizen operating system, which is backed by Samsung (SSNLF).
Fitbit dominates the activity tracker market
The situation is different in the activity fitness tracker market, with Apple lagging behind Fitbit (FIT). According to a report from NPD, Fitbit dominates this market with a 79% share. Xiaomi and Apple are among the smaller players in this market. The report also says that the overall US activity tracker market is much bigger than the US (SPY) smartwatch market, with 33 million and 13 million units sold, respectively, as of 4Q15. Apple has a lot of catching up to do in the activity tracker market.