Apple’s share of the smartwatch market fell to 34 percent in Q2 2018 from 43 percent in Q1 2018, said Canalys.
Apple Watch shipments to Asia excluding China crossed 250,000 units, with the LTE version accounting for about 60 percent.
The cellular-connected Apple Watch Series 3 was the best-shipping smartwatch in Asia in Q2 2018.
Canalys said Apple shipped 3.5 million smartwatch units worldwide, 30 percent more than in the same period last year.
Global smartwatch shipments reached 10 million units on the back of stellar performances by Fitbit and Garmin.
“Apple’s decision to expand internationally with telecom operators has reaped rewards in Asia Pacific,” said Canalys Senior Analyst Jason Low.
Since the launch of the Apple Watch Series 3, Apple has joined hands with mobile operators in Australia, Japan and Singapore, with Thailand, India and South Korea added in the last quarter.
“Operators are willing to resell connected devices other than smartphones that can help them generate extra revenue from data services. Airtel and Reliance Jio will be able to retain their high-value customers in a bid to minimize churn in a cut-throat market,” Jason Low said.
Canalys Research Analyst Vincent Thielke said that Apple needs to work out how to drive refreshes in markets such as the US, where its penetration into the existing iPhone installed base has started to level off.
Samsung may launch Galaxy watches, while Google may introduce Pixel smartwatch to take on Apple.