Clock ticks on smartwatch

Is the smartwatch boom over before it has a chance to take off?

Research firm IDC says global smartwatch sales fell 32 percent in the April-June quarter, compared with a year ago, the first ever drop. IDC says an estimated 55 percent drop in Apple Watch sales, to 1.6 million units, is to blame. Apple Chief Financial Officer Luca Maestri said the estimate was “not in the ballpark,” though its “other products” segment,t which includes Apple Watch, saw revenue drop 16 percent from a year ago. Some reasons for the drag: Unimpressed with the first model that debuted in April 2015, many are waiting for refreshed hardware. And Apple’s new watchOS operating system – which will speed up app launches – isn’t c coming until this fall. Applep doesn’t release figures, but IDC says the iPhone maker dominates the category, accounting for nearly half of smartwatches sold. But signs are troubling for this once-highly expected new source of growth for Apple in a smartphone-clogged world. Watch-wearing is down and young people aren’t expected to pick up the habit, according to analysts at Mizuho Securities. Few people expect to buy a smartwatch in the next three months, Mizuho says, and those willing don’t want to pay more than $250. Apple Watch prices start at $300. Alarm bells are ringing on this category and it’s no time to hit snooze.