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A Look at Expected Growth for the Apple Watch in 2018

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Apple Watch Series 3 shipments could rise 20% YoY in 2018

Analysts expect Apple Watch Series 3 shipments to rise 20.0% YoY (year-over-year) in 2018 to 23 million–25 million units. According to a report from Apple Insider, Advanced Semiconductor Engineering (ASX) could report record revenues in the quarter ended December 2017.

ASX handles packaging and testing of Wi-Fi, RF (radio frequency), and MEMS (microelectromechanical systems) chips for the Apple Watch and iPhone.

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Universal Scientific Industrial also saw a YoY rise of 24.0% in revenues to $482.8 million, driven by SiP (system-in-package) orders for the Apple Watch Series 3. Although Apple has regularly remained optimistic with respect to Apple Watch shipments, it has never declared exact figures for this product.

Apple Watch is a part of the Other Products business segment for Apple, which includes revenues from Beats and Apple TV. Revenues from this segment rose 16% YoY to ~$12.9 billion in fiscal 2017 and 11.0% YoY to $11.1 billion in fiscal 2016.

Apple accounts for 10.3% of the total wearables market

Market research firm IDC has estimated wearables shipment volume for Apple (AAPL) to rise 52.0% YoY to 2.7 million units in 3Q17, indicating a market share of 10.3%. Global wearables shipments rose 7.3% YoY to 26.3 million units in 3Q17.

The top players in this space include China’s (FXI) Xiaomi, Fitbit (FIT), Huawei, and Garmin (GRMN) with market shares of 13.7%, 13.7%, 6.0%, and 4.9%, respectively, at the end of 3Q17.

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