Apple Watch share plummets in Q3 2016, says IDC

Apple Watch share plummeted due to an ageing lineup and an unintuitive user interface, market research firm International Data Corporation (IDC) said.

The wearable market share of Apple fell to 4.9 percent in Q3 2016 from 17.5 in Q3 2015. Apple was ranked second in the third quarter of last year. Samsung increased its wearable market share to 4.5 percent from 2.4 percent.

Apple’s decision to launch its second-generation watches in mid-September, towards the end of the quarter, did contribute to its year-over-year decline in the third quarter of 2016 and the US-based technology company stood fourth with 4.9 percent share.

The overall wearables market grew 3.1 percent year-over-year in the third quarter of 2016 to 23 million.

“Where smartwatches were once expected to take the lead, basic wearables now reign supreme. Simplicity is a driving factor and this is well reflected in the top vendor list as four out of five offer a simple, dedicated fitness device,” said Jitesh Ubrani, senior research analyst, IDC Mobile Device Trackers.

Basic wearables, primarily comprised of fitness bands, accounted for 85 percent of the market and experienced double-digit growth.
Fitbit, with a 23 percent share, was once again the market leader in the third quarter as the vendor released a long-awaited refresh for the Charge HR wireless activity wristband with Charge 2.

Xiaomi stood second with 16.5 percent market share. The Chinese technology company across all business lines continues to struggle to gain any significant traction outside China.

With a market share of 5.7 percent, Garmin stood third as the company with one of the widest portfolios among all the vendors.

The company managed to expand its channel presence over the past year, focusing on numerous sports equipment chains and independent retailers.

Samsung, with 4.5 percent market share, stood fifth and the company was able to sustain shipments of its Gear S2, particularly the cellular-enabled versions, through various wireless service providers.

The momentum for basic wearables will continue in 2016. However, smart wearables capable of running third-party apps will likely continue to struggle in the near term.

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