Global Smartwatch Shipments Grew 37%YoY in Q2 2018, Apple Watch Series 3 the Most Popular Model
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August 30th, 2018
Apple continues to dominate the smartwatch market with a 41% share. Further, smartwatch makers are looking to add cellular connectivity for standalone use-cases as 90% of smartwatches shipped today are not cellular capable. (previously we stated Apple Watch Series 1 as the best selling but after more scrutiny we confirm Series 3 was the bestselling. therefore we have restated this part in the press release.)
According to the latest research from Counterpoint’sGlobal Smartwatch Tracker, global smartwatch shipments grew 37% YoY in Q2 2018.
Commenting on the major shift in the market, Counterpoint Research Analyst,Satyajit Sinha), noted, “Back in Q4 2017, Apple stepped up its strategy in the smartwatch segment by enhancing the features of smartwatches into broad-based functionalities, including some health and fitness tracking capabilities. Moreover, Apple is catalysing the trend of ‘smartwatch as a standalone wearable device’ with adoption of cellular connectivity, which is driving the new wave of cellular connected wearables globally, great news for mobile operators.”
Mr. Sinha, further added, “Battery-life is a constant concern with smartwatches, given their tiny batteries. However, Apple, Samsung and Huawei are consistently working to optimize the software and the overall design and adding components such as eSIM to make space for bigger batteries. Moreover, the adoption of cellular Low Power Wireless Access (LPWA), technology especially LTE-M in smartwatches will also drive core use-cases in a smartwatch while boosting battery life.”
Exhibit 1: GlobalSmartwatch Shipments market share by in Q2 2017 vs Q2 2018
Source: Counterpoint Research Q2 2018 Global Smartwatch Tracker
Looking at the different smartwatch platforms, Research Analyst,Flora Tang, added, “Proprietary platforms continue to dominate the smartwatch market. The smartwatch engine is mostly powered by Apple’s watchOS or Fitbit OS or Samsung’s lone adoption of Tizen OS and different flavors of RTOS implementations and all are closed platforms. Hybrid watches which are mostly non-touch smartwatches based on proprietary platforms and sensors, mostly from Swiss watchmakers declined 22% YoY.
The shift to Androidwear OS still hasn’t happened like we have seen in Android for smartphones. This is partly due to lesser focus, less intuitive UI and selective smartwatch OEM partnerships by Google over the last few years for Androidwear OS. Google hopes to change this with the upcoming launch of wear OS 2.0 based watches but will need a complete overhaul of the UI, powerful integration of key Android experiences and by striking key partnerships.”
Exhibit 2: Global Smartwatch shipment share – by Platformin Q2 2018
Source:Counterpoint Research Q2 2018 Global Smartwatch Tracker
Apple and Fitbit dominated with two models each out of the top five rankings, however, the Chinese brand Amazfit’s smartwatch BIP remained popular globally as it ramped sales and popularity across the top 50 countries in the first half of this year.”
The Smartwatch market is dominated by the top six brands contributing to 74% of the volume shipments:
- Apple’squarterly shipments declined 20% quarterly in Q2 2018 due to seasonality. However, it grew 17% YoY as uptick for Apple Watch has been rising compared to a year ago.
- Fitbit’sshare in smartwatch shipments grew exponentially, majorly due to the huge success of Versa which was released in in April 2018. Its market share increased from 8% in Q2 2017 to 21% in Q2 2018.
- Amazfitis a sub-brand of a Chinese OEM Huami, which is a manufacturer of wearable products for Xiaomi. It currently holds 4% market share in Q2 2018 and jumped into the top five rankings globally. Its established sales channels and brand awareness of Mi smartphones and bands will drive the home advantage for the Amazfit brand.
- Garminshipments grew 35% YoY and holds 3% market share. Launch of Vívoactive 3 music and Fenix 5 Plus series of watches with built-in maps, Garmin Paymobile payments, music storage are key features that are attracting consumer interest. Moreover, the inclusion of Pulse Ox sensor technology for blood oxygen saturation awareness on the Fenix 5X Plus, just after FDA approval on 16thMarch 2018, are one of the unique features in the market to compete with Apple and Fitbit and it will lead to a significant growth in Garmin shipments by the end of 2018.
- Samsungsmartwatch shipments declined 17% QoQ and 43% YoY. The major concern for Samsung is the limited refresh rate on its portfolio along with premium prices. However, Samsung launched its Gear S4 in Aug 2018, which will increase its shipments in Q3 2018.
- Fossil佛罗里达州出货量仍t YoY in the smartwatch segment. However, the Fossil Q Venture, the Fossil Q Explorist and its key strategic partnership with Google to dominate Fashion-First Smartwatches will sustain its growth as it continues to shift its watch segment into the smartwatch segment.
- Proprietary OS grew 76% YoY majorly due to Fitbit, Amazfit and other white label models.
- 操作系统iOS出货量同比增长17%,穿出货量grew 24% YoY. However, iOS market share declined from 48% to 41% YoY whereas Wear OS market share declined from 8% to 7% YoY.
* We previously stated Apple Watch Series 1 as the bestselling but this was due to an error in our data collected from distributors inaccurately labeling sales numbers. After comparing with different sources we confirm a majority of the Series 1 were actually Series 3. Series 3 were more than 50% of Apple Watch sales during Q2 of 2018.
For our detailed analysis on Global Smartwatch Tracker, you canaccess the full reporton our Insights Portal
Background:
Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.
Analyst Contacts:
Satyajit Sinha)
Neil Shah
+91 9930218469
Flora Tang
+852 5545 2529
[email protected]
Counterpoint Research
