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  Date: 25/10/2016

IDC finds sharp decline in Smart watch shipment volumes

IDC reports the total Smart watch shipments reached 2.7 million units in 3rd Quarter of 2016. A decrease of 51.6% from the 5.6 million units shipped in 3rd Quarter of 2015. Jitesh Ubrani, IDC analyst says Smart Watches are not for everyone and he also suggest to differentiate the experiences of Smart watch from the smartphones. IDC also refers to take the note of apple watch having a wide spread retail availability after limited online launch after 3rd Quarter 2015. IDC shares below the analysis of Top Five Smart watch Vendors:

1. Apple:
Apple maintained its position as the overall leader of the worldwide smart watch market, yet it posted the second largest year-over-year decline among the leading vendors. Its first-generation Watches accounted for the majority of volumes during the quarter, leading to the significant downturn for the quarter. Its Series One and Series Two did little to stem that decline, although with lower price points and improved experiences, Apple could be heading for a sequential rebound in 4Q16.
2. Garmin
Garmin posted the largest year-over-year increase among the leading vendors, thanks to its growing list of ConnectIQ-enabled Smart Watches and the addition of the fenix Chronos. Whereas other Smart Watches attempt to be multi-purpose devices, Garminís Smart Watches focus on health and fitness, and the applications reflect that strategy. Its total volumes helped close the gap further against a declining Apple and extended its lead ahead over Samsung.

3. Samsung
Samsung finished 3Q16 slightly higher from a year ago on the strength of its aging Gear S2 Smart Watches. These still remain one of the few Smart Watches on the market that feature full-time cellular connectivity. The company introduced its follow-up, the Gear S3, with a Bluetooth-only version as well as a cellular version, but it has yet to be released to the market.

4. Lenovo
Lenovo (Motorola) suffered the largest year-over-year decline among the leading vendors, with multiple channels selling out of Moto 360 devices (both first and second generation) and a scarcity of its recently released Moto 360 Sport Smart Watch. In addition, 3Q16 marks the first time in which Motorola did not introduce a new Smart Watch in time for the holiday quarter, adding to its decline in the market.

5. Pebble
Pebble arguably kicked off the Smart Watch category with its original Kickstarter campaign in 2012. Since then the company has launched multiple variants of the Pebble watch and also introduced a new timeline-based user interface, though none of them achieved mass success. After another successful Kickstarter campaign in early 2016, Pebble released the Pebble 2 (oddly enough, the third generation) late in the third quarter. The new Pebble 2 is the first watch by the company to include a heart-rate sensor and has an overall focus on fitness.
Author: Srinivasa Reddy N
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