Research firm IDC published its latest findings on the wearable market on Thursday. The report, emailed to TechnoBuffalo, found that, as a whole, wearable shipments fell 32 percent during the second quarter of this year compared to Q2 2015. This was largely due to a drop in Apple Watch shipments given Apple’s lion’s share of the market and considering the Apple Watch is getting a bit long in the tooth.
“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 senior research analyst Jitesh Ubrani explained. “Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire 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.”
As a result, Apple’s market share dipped from 72 percent in Q2 2015 to 47 percent in Q2 2016. Samsung’s share jumped from 7 percent to 16 percent, Lenovo remained steady at 3 percent, LG doubled from 4 percent to 8 percent, and Garmin doubled its share from 2 percent to 4 percent.
We agree with IDC’s predictions that the market will bounce back as soon as Apple launches the Apple Watch 2, so long as consumers are interested in it. Given the company’s share, it has the power to fluctuate the wearable market in either direction pretty drastically.