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Volumes down as industry’s big guns tweak their strategies, IDC says.
Global smartwatch shipments plunged 51.6% in the third quarter, after Apple’s updated Watch went on sale too close to the of September to have an impact on volumes, and after Google pushed back the launch of Android Wear 2.0.
Figures published by IDC this week put shipments at 2.7 million units, compared to 5.6 million shipped in the third quarter of 2015.
"The sharp decline in smartwatch shipment volumes reflects the way platforms and vendors are realigning," explained Ramon Llamas, research manager for IDC’s wearables team, in a statement on Monday.
"Apple revealed a new look and feel to watchOS that did not arrive until the launch of the second generation Watch at the end of September. Google’s decision to hold back Android Wear 2.0 has repercussions for its OEM partners as to whether to launch devices before or after the holidays. Samsung’s Gear S3, announced at IFA in September, has yet to be released," he said.
"Collectively, this left vendors relying on older, ageing devices to satisfy customers."
Market leader Apple saw volumes fall 71.6% to 1.1 million, while navigation specialist Garmin overtook Samsung to claim second place with 600,000 shipments, up from 100,000 a year earlier. By comparison, Samsung saw shipments climb 9% to 400,000.
Lenovo and Pebble complete the top five, each shipping 100,000 smartwatches during the quarter, down from 300,000 and 200,000 respectively a year earlier.
"It has also become evident that at present smartwatches are not for everyone," suggested Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers.
"Having a clear purpose and use case is paramount, hence many vendors are focusing on fitness due to its simplicity. However, moving forward, differentiating the experience of a smartwatch from the smartphone will be key," he said.
