Strategy Analytics released its global smartwatch shipments report for the second quarter. We’ll discuss what the report said about Apple Watch.
Apple Watch has a 46.4% share in the global smartwatch market
According to the report, the smartwatch shipments in the second quarter rose 44.0% YoY (year-over-year) to 12 million units. Apple Watch dominated the market and maintained the top position with a share of 46.0%.
The company reportedly sold 5.7 million devices—up from 3.8 million devices in the second quarter of 2018 and a YoY growth rate of 50.0%. Apple Watch managed to outperform global growth again. The other top players include Samsung (SSNLF) and Fitbit (FIT). While Samsung’s shipments rose 122.0% in the second quarter to 2.0 million units, Fitbit lagged the overall market with a 7.7% decline in shipments.
Samsung reached the second position in the global smartwatch market. Apple is ahead of its peers. Samsung accounts for 15.9% of the market, while Fitbit accounts for 9.8%. Steven Waltzer, Strategy Analytics’ senior analyst, said, “Global smartwatch shipments grew an impressive 44 percent annually from 8.6 million units in Q2 2018 to 12.3 million in Q2 2019. Smartwatch growth continues to soar, as consumers increasingly accessorize their smartphones with fitness-led wearables.”
Fitbit has struggled over the years in the wearables market space. In the second quarter, weak sales of the Fitbit Versa Lite impacted the company’s revenues and drove its stock significantly lower.
Apple’s market share has declined in the Smartwatch segment
According to Statista, Apple’s (AAPL) smartwatch market share fell from 71.5% in the second quarter of 2015 to 56.1% in the fourth quarter of 2017. However, investors shouldn’t be concerned. Apple continues to grow its shipments at a strong pace. Apple Watch is priced at a premium compared to other smartwatches. The watch continued to outpace the overall market in the second quarter, which increased its market share.
Apple’s Wearable revenues in the June quarter rose 48.0% to $5.53 billion—up from $3.73 billion in the second quarter of 2018. Apple’s wearable revenues include sales from Apple Watch, AirPods, Apple TV, and the HomePod.
Tim Cook, Apple’s CEO, said that 75.0% of Apple Watch buyers in the June quarter were first-time buyers. The company’s management is optimistic about the business.