The Apple Watch remains the leader in a sinking market, why?

The smartwatch market seems to have peaked some time ago. Although it took shape and sales shot up in 2015 thanks to the launch of the Apple Watch, a true sales success in its early days, from then on both the Cupertino company and the rest of the manufacturers have experienced a continuous drop in sales that has accelerated abruptly during the third quarter of 2016.

According to the latest report prepared by the IDC consultancy, sales of smart wearables, that is, those capable of running third-party applications, have fallen over 50% during the third quarter of this year and with respect to sales for the same period. from the previous year. AND Although the apple watch has also seen its sales fall, the Apple Watch has managed to maintain the hegemonic position that it already assumed from the moment of its launch in April 2015. How then is the global market for smartwatches? What role does the Apple Watch play in it? Do Apple Watch and other smartwatches have an expiration date?

The momentum of the Apple Watch

At the end of April 2015 the Apple Watch went on sale in a first group of countries. From that very moment seized the number one position in sales globally, thus snatching it from Samsung, its biggest competitor. The arrival of the Apple Watch, preceded by more than six months of fueled anticipation, together with other relatively successful devices such as Huawei, boosted a segment that until then seemed not to take off.

Smart watches were not invented by Apple, they already existed before the emergence of the Apple Watch, but it was this that made them fashionable, or so it seemed. A year and a half later, with a second generation already underway and a Watch Nike + edition about to see the light next Friday, not even the Apple Watch has been able to deny what many ventured as a mirage.

Smartwatch sales plummet, but the Apple Watch remains the leader. This is one of the conclusions to which the latest report prepared by IDC leads us. Quarter after quarter, sales of these devices are suffering a continued decline that, for the third quarter of 2016, is estimated at -51,6%, more than half, having gone from 5,6 million units sold in the third quarter of 2015 to 2,7 million in the same period of the current year. AND Although the Apple Watch has also seen its sales reduced dramatically, it has managed to maintain its hegemonic position above all the competition.

Why Apple Watch Sales Are Falling But It Remains A Leader

The simplest explanation for this answer is that it starts from higher sales figures, however, the IDC study reveals some keys that we must consider. A) Yes, the third quarter of 2015 was the first full period in which the Apple Watch was already widely available; Until then, its sales were limited to certain countries, increasing, but not all in which the company operates. This, together with the initial "boom", contributed figures that might not correspond to what the real trend would be, that is, figures that were "too" bulky (not false).

Moreover, Only during the last two weeks of the third quarter of 2016 has the second generation of the Apple Watch been available (The Nike + model has not yet gone on sale). Here an opposite factor acts: the expectation of an updated device reduces sales as many users wait to acquire the latest model.

All this may sound like an excuse, certainly, but it is not. The Apple Watch is in line with the rest of smartwatches, and therefore its sales also fall. In other words, it is a device excessively dependent on the iPhone that, to a large extent, "repeats" what you already have on your phone. This, for many users, including myself, makes it useless, and ends up tiring, while its usefulness is demonstrated for a more specific audience, mainly those who practice sports and are very interested in their health.

By cons, its design and quality is far superior to the competition, and whoever had it is aware of it. This is what allows the Apple Watch to continue to be the leader in a general downward environment. (despite the spectacular drop experienced) ahead of Garmin, Samsung, Lenovo (Motorola) and Pebble, which are ranked second to fifth in this order.