Rising competition in wearables to challenge Apple’s smart watch market
▶ With a 45% share, the company dominates the global market, which had sales of 10 million units in the third quarter
The smart watch industry is dominated by Apple, which has captured 45 per cent of global market share, but the competition is heating up as more people are opting to wear tech-enabled devices, according to a new report.
By comparison, second and third-placed Fitbit and Samsung had 15 and 11 per cent market share through the third quarter, respectively, according to research firm Strategy Analytics.
Smart watch sales worldwide grew 67 per cent annually to 10 million units in the third quarter of 2018, said Steven Waltzer, industry analyst at Strategy Analytics. “Smart watch growth is soaring, as consumers increasingly seek to accessorise their smartphones,” he said.
In the Middle East and Africa, wearables are projected to grow more than 15 per cent by number of devices sold as of the end of the year, compared to 2017. Tech companies are boosting investment in wearables to diversify income as demand for smartphones falls.
Apple, which posted revenue of $62.9 billion in its last quarter, shipped close to 4.5 million devices in the quarter, while Fitbit and Samsung shipped 1.5 and 1.1 million smart watches, respectively.
The company launched its latest Watch Series 4 model in October, and while the world’s biggest tech company is the leader in smart watches, it saw a significant drop in sales compared to last year.
“Apple is facing growing competition from a revitalised Fitbit and Samsung. Its new Watch Series 4 model was a badly needed addition to its armoury,” said Neil Mawston, executive director at Strategy Analytics.
Last quarter, South Korea’s Samsung recorded its first global market share gain in smart watches in a year, and sales in the Arabian Gulf have grown three-fold in the past three years, the second-biggest market share in MEA.
Samsung, the global leader in smartphone sales, recently introduced its new Galaxy Watch to the region.
“The smart watch is no more only a smart watch or just a tool, but it is now a fashion that is part of their [consumers] day-to-day life,” said Tarek Sabbagh, head of IT and mobile division of Samsung Gulf Electronics.
So far the company has marketed smart watches designed in collaboration with Tumi, but Mr Sabbagh said, Samsung is looking to partner with more designers – a move that could compete with Apple’s tie-ups with Hermes and Nike.
The biggest gainer so far is Fitbit, rising from zero market share a year ago to the number two spot. Its Versa portfolio is proving wildly popular across North America and the company is now eyeing growth in Europe and Asia.
By comparison, second and third-placed Fitbit and Samsung had 15% and 11% market share through the third quarter