Smartwatch market slips on Apple decline

WASHINGTON: The global smartwatch market took a sharp downward turn in the second quarter on falling sales of the industry-leading Apple Watch, a survey showed.

Research firm IDC said global sales of smartwatches tumbled 32 per cent from a year ago to 3.5 million units.

Apple remained the market leader with an estimated 47 per cent market share, but sales fell by more than half from the same period last year to 1.6 million, according to IDC.

The other top vendors including Samsung, Lenovo, LG and Garmin boosted sales over the quarter, according to IDC, which said Apple lost momentum after last year’s muchawaited launch and strong holiday season sales.

“This is a very cyclical market,” said IDC analyst Ramon Llamas, who noted that consumers appeared to be waiting for a next-generation Apple Watch with improved features.

IDC said consumers are expected a new Apple device and operating system later this year, which led to lower sales in the past quarter.

“Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market,” said IDC’s Jitesh Ubrani.

“Every vendor faces similar challenges related to fashion and functionality, and though we expect improvements next year, growth in the remainder of 2016 will likely be muted.”

Apple does not release data on smartwatch sales, and IDC relies on its own surveys and data from distributors and suppliers for its estimates.