Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego
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’s Global 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: Global Smartwatch 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 Platform in 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:
* 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 can access the full report on 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