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IDC says quarterly shipments plunged 32% due to lack of Apple Watch buzz.
Global smartwatch shipments tumbled during the second quarter, revealed IDC late on Thursday, after the initial excitement created by the Apple Watch died down.
According to the research firm, 3.5 million smartwatches were shipped during the three months to 30 June, down from 5.1 million in the same quarter a year earlier.
The decline was led by Apple, which saw a 55% fall in volume to 1.6 million units. IDC noted that the company’s first smartwatch went on sale this time last year, and with the new edition not expected until later this year, prospective customers are playing wait and see.
"Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvements in [Apple] WatchOS are not expected until later this year, effectively stalling existing Apple Watch sales," said Jitesh Ubrani, senior research analyst for IDC mobile device trackers, in a statement.
Despite the steep fall in shipments, Apple is still the biggest smartwatch vendor, according to IDC.
Second-placed Samsung shipped 600,000 smartwatches in Q2, an improvement over the 400,000 shipped in Q2 2015. China’s Lenovo recorded shipments of 300,000, up from 200,000, while LG and Garmin completed the top five, shipping 300,000 and 100,000 respectively.
IDC said it is imperative that traditional watchmakers bring their expertise to the smartwatch market, namely in design, fit, and functionality, said Ramon Llamas, research manager for IDC’s wearables team.
"Combine these with the brand recognition and distribution these brands already have, and it’s reasonable to expect the smartwatch market to grow from here," he said.
IDC said it expects the market to return to growth in 2017, as device makers refine their offerings and add features that will appeal to a broader customer base.
"Exactly when that rebound happens will depend heavily on when vendors drive a better use case," the company said.
