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Why Apple Is Optimistic about Growth in Smartwatch Segment

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Apple has more than 46.0% of wearables space in holiday period

According to Slice Intelligence, Apple (AAPL) accounted for 46.0% of the online revenue generated in the wearables market during this holiday period. That compares to 37.0% at the end of the last holiday season.

Apple’s closest competitor, Fitbit (FIT), saw its market share fall from 36.8% in 2015 to 31.9% this year. Garmin (GRMN) has also gained traction in the 2016 holiday season, with its share rising from 7.2% in 2015 to 8.1% in 2016. Samsung (SSNLF) was the fourth-largest player despite falling revenue.

Revenue from the wearables market rose 10.0% YoY (year-over-year) and has outpaced revenue in the electronics segment.

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New record in the holiday season for Apple

As we’ve already seen, IDC (International Data Corporation) expects the Apple Watch shipment to fall 71.0% YoY in 3Q16. However, Tim Cook, Apple’s CEO (chief executive officer), believes that Apple Watch will post record sales this holiday season, driven by impressive figures in the first week of the shopping season.

Cook wrote, “Our data shows that Apple Watch is doing great and looks to be one of the most popular holiday gifts this year.” He added, “Sales growth is off the charts. In fact, during the first week of holiday shopping, our sell-through of Apple Watch was greater than any week in the product’s history. And as we expected, we’re on track for the best quarter ever for Apple Watch.”

IDC claimed that Apple Watch sales fell due to an “aging lineup and an unintuitive user interface.” Apple doesn’t release official Apple Watch sales figures. Instead, it mixes product sales with iPods and other accessories. In the smartwatch segment, Apple leads the market with a share of 41.3%, followed by Garmin and Samsung at 20.5% and 14.4%, respectively.

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