Apple Watch sales fell 55 per cent in the second quarter of this year, dragging the global market for such devices lower, as potential customers hold off for an update coming later this year, according to a report from market intelligence firm IDC.
Apple sold 1.6 million watches in the second quarter of this year, down from 3.6 million units a year earlier, IDC said. Global smartwatch sales fell 32 per cent to 3.5 million units.
While Apple held on to its position as the industry leader, with 47 per cent of the market, it was the only company in the top five to see a decline. Samsung saw its market share more than double to 16 per cent.
“Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvements in WatchOS are not expected until later this year, effectively stalling existing Apple Watch sales,” IDC analyst Jitesh Ubrani wrote in the report. “Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market.”
Apple Watch is the company’s first new hardware product since the iPad’s 2010 debut and is a key part of chief executive Tim Cook’s strategy to find new areas of growth as sales of the iPhone slow. Apple is expected to introduce an updated operating system and an Apple Watch 2 this fall, promising new features and better performance.
IDC said despite Apple’s sharp drop it expects growth in 2017, as continued development appeals to a broader market.
“Every vendor faces similar challenges related to fashion and functionality, and though we expect improvements next year, growth in the remainder of 2016 will likely be muted,” said Ubrani.
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