Apple’s Share of the Smartwatch Market Drops below 45% in the Second Half of 2018
Shipments of smartwatches are projected to increase from 40 million in 2018 to over 99 million in 2023.
While the overall smartwatch market is experiencing steady growth, Apple’s hold on share continues to slip. ABI Research forecasts that smartwatches will see shipments increase from 40 million in 2018 to over 99 million in 2023, with Apple’s share of the market in the second and third quarters of 2018 dropping to 43.4%, its lowest point since the same time last year. It is still ahead in the market, however, with Fitbit, Huawei, and Samsung following behind at roughly 8% each.
“The smartwatch market is a major part of the overall wearables market, offering consumers access to a large number of wearable features, such as fitness tracking, notifications, and heart rate monitoring, from the wrist,” said Stephanie Tomsett, research analyst at ABI Research. “As the number of flagship and budget smartwatches continues to grow, consumers are increasingly opting for devices from companies other than Apple, such as Fitbit, Huawei, and Samsung. Hence, Apple has seen its market share drop over the past couple of quarters.”
The Apple Watch 4 is an advanced device, offering the usual notifications, fitness and heart rate tracking, as well as an LTE option, Siri, and extra features such as a fall sensor and ECG readings in the U.S. While few devices offer similar options, particularly the latter two, a large number of other smartwatches are available from companies such as Fitbit, Huawei, and Samsung, many at a cheaper price with a longer battery life and improved smartphone compatibility, but with fewer features. Consumers are increasingly weighing up the benefits and costs between the extra features and the longer battery life/cheaper price.
“Apple will continue to ship a large number of smartwatches to both loyal and new customers,” said Tomsett. “However, with so many other smartwatches available with most of the major features of the Apple Watch, at a reduced price, increased battery life, or with greater compatibility with a larger number of smartphone OSs, more consumers are likely to move away from Apple in favor of these other devices.”
Additional details are available at www.abiresearch.com.