Strategy Analytics has just released the data for Smartwatches market, and it’s not good news for Apple. In fact, it’s a double whammy for them.
Apple has fallen in the absolute number of smartwatches sold …
And it has lost out on the total market share.
Oh dear, dear!
In the last Quarter (Q4-2015), Apple sold 5.1 million units of Apple Watch; however, in this Quarter (Q1-2016), Apple sold only 2.2 million units. Apple’s market share saw a similar decline, when it slipped from 63% in Q4-2015 to 52% in Q1-2016.
While Apple has lost some ground, it’s really not the end of the world for them. 52% market share still means that they sold more smartwatches than all their competitors put together. However, such a steep decline in the market share is definitely a worrying trend for Apple, especially considering that their smartphone is not doing as well as expected.
Neil Mawston, the Executive Director at Strategy Analytics summed up the situation well:
“We estimate Apple Watch shipped 2.2 million units […], Samsung shipped 0.6 million smartwatches, capturing 14 percent market share worldwide for second position. Apple Watch and Samsung Gear models are expanding fast across dozens of countries, but competition from LG, Motorola and others is ramping up fast.“
Notice that the statement says “estimate” because Apple hasn’t yet released the actual sales figures for this Quarter. It’s likely that Apple might not release them at all. The company usually reserves the sales/downloads/user base figures for their annual event. It’s not their style to make these numbers public every Quarter.
This year is going to be a tough one for Apple. The iPhone sales are down, Apple Watch sales are down, and the company is facing imminent market stalling. The new MacBook is drawing heavy flack and their iPhone SE did not capture hearts as planned.
Apple’s hope now lies heavily on emerging markets such as India and Brazil. And they are already flooded with cheap mid-range phones. Apple’s price brackets are still high for the target audience.
Apple needs to launch a new price policy and it needs to do it now. At the same time, it has to stop doing insane things like increasing the prices of its well-performing devices. That’s not getting them any favors from iPhone lovers.
