Apple Watch is Simply Too Dominant

Posted by Kirhat | Monday, November 09, 2015 | | 0 comments »

Apple Watch
Apple Watch is simply dominating the smartwatch market by selling millions of units each quarter while its nearest competitors are lucky to sell in the hundreds of thousands.

Last 4 November 2015, research firm Canalys estimated that the Cupertino-based company shipped nearly 7 million Apple Watch units in the second and third quarter combined, the first two quarters of availability. Meanwhile, Wall Street analysts estimate that Apple sold 6 million Apple Watches during that period.

Canalys didn't break down shipments by quarter, but Wall Street analysts estimate that Apple sold 3.5 million watches in the September quarter.

Apple's closest rival shipped fewer than 300,000 units in the third quarter, Canalys said. Apple's rivals include Samsung, Pebble, LG, and Lenovo-owned Motorola.

In the second quarter, Apple is believed to have captured 75.5 percent of the smartwatch market with shipments of 4 million units, according to Strategy Analytics. The research firm put Samsung in second with 7.5 percent market share and 400,000 units shipped.

The major research firms have not yet put out estimates for the third quarter.

Competition is expected to get stiffer as major watch brands Tag Heuer and Fossil debut smartwatches in the fourth quarter, Canalys analyst Chris Jones told IBD.

Tag Heuer, a unit of French luxury goods conglomerate LVMH, is scheduled to unveil soon a smartwatch powered by an Intel processor and runs Alphabet-owned Google's Android Wear operating system. The Tag Heuer smartwatch is expected to sell for about US$ 1,800. The Apple Watch starts at US$ 349 and has models costing as much as US$ 17,000.

Fossil plans to release its Fossil Q Founder smartwatch in time for Christmas. It runs the Android Wear operating system, uses Intel chips and will start at US$ 275.

Apple Watch shipments are below where Canalys and others thought they'd be now, Jones said. When the Apple Watch launched on April 24, Canalys predicted that Apple would ship 20 million units by the end of the calendar year. "That looks out of reach now," Jones said.

"They're going to be a few million shy of that 20 million."

Apple still has work to do to generate demand for its smartwatch. "It's a few hundred dollars to fork out," Jones said. "And a lot of people are trying to figure out what it's going to add to their lives."


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