Apple Sees Strong Wearables Growth With 12.8 Million Shipments in Q1 2019

[Solomani]

Amazing that Apple is outselling the competitors whose wearables are a fraction of the price of an Apple Watch.

The Chinese companies like Xaomie will eventually "surpass" Apple's market share in wearables (due to sheer size of the Chinese home market). Then again, I would be leery of wearing the Chinese-made techno-wearables, any more than I trust their companies to make dog food (poisonous) or baby food (poisonous) for US consumers.

 

[nikusak]

Apple is making another GIANT mistake by not bringing Apple Watch to be compatible with Android phons, after so many years. If they don't start doing it very soon, they are losing that BIG market forever, I meant FOREVER!

Apple Watch will never work with Android.

The reason why Apple Watch is so good is its tight integration with iPhone and iOS which are 100% in Apple’s control.

Even simple things would be difficult, or impossible, to get working. For example, I can terminate an iPhone alarm with the Apple Watch.

On Android, the Watch would know nothing about an alarm set on the phone, unless you make low level changes to Android’s alarm system - or create your own Alarm app which communicates with the Watch.

(Well, maybe you could show a dumb notification or something..)

Or, I can create a reminder (or calendar entry etc.) by talking to the Watch. You would effectively need a Siri implementation on Android.

Also, vast majority of Android users are in much lower income brackets; they are not potential customers for a smartwatch which starts at $400 or so.

Even the ones who could afford it are probably not interested in anything by Apple.

Just buy an iPhone if you want an Apple Watch.

 

[BvizioN]

Simple....cause it's Apple

Or simply cause their products are awesome.

 

[Bawstun]

But market share has slightly eroded YOY.

It’s all about the marketshare. And Apple is universally losing it, on all of their products. Every single one if I recall correctly.

But hey, stock price is up. That’s all that matters.

10 years, tops. Apple is on a decline and nobody even sees it.

 

[mdriftmeyer]

Simple....cause it's Apple

Simple, because it's iOS in a Watch that does the work of ten devices in one.

 

[Abazigal]

Apple is making another GIANT mistake by not bringing Apple Watch to be compatible with Android phons, after so many years. If they don't start doing it very soon, they are losing that BIG market forever, I meant FOREVER!

While I do think that the Apple Watch will eventually work on android, I do believe that porting it over is a huge undertaking and that it will not happen anytime soon.

For one, the Apple Watch works as well as it does because Apple controls so much of the underlying software and services. Everything from Siri to iMessage to Apple Pay is so tightly integrated. I don’t see Apple porting these serves over to Android, much less them working well on another platform.

For now, Apple is probably still content to have the Apple Watch serve as a chain to lock users to the iPhone, which is still their main source of revenue. In a sense, it frees Apple up to focus on making the Apple Watch the best it can be without having to worry about developing for another platform.

 

[threesixty360]

Of course.

Especially Apple Watch will "lose" market share in the coming years.

Why? It's simple: Android market share is about 85%.

If 20% of Android owners buy a smartwatch in the next three years it's roughly something like 500 million units.

If 20% of iPhone owners buy an Apple Watch it's something like 200 million units.

...and then we will get Forbes and Business Insider clickbait headlines how Apple Watch market share has "collapsed" even though those kind of figures would be a crazy success for Apple.

Apple Watch is an iPhone accessory. Of course it can't compete in the long run in market share against "others" that are mostly used with Android. But that's pretty much irrelevant.

Instead, Apple Watch marketshare *within* the iPhone ecosystem is the thing to look at: how it's doing against FitBits etc. bought to be used with an iPhone, as is the YoY growth and percentage of iPhone owners either owning one or planning to get one.

It's the same with AirPods. Of course a heavily iPhone associated product (although it works with anything) can't compete against "others" in the long run. But again, that's not the thing to look at.

These 85% android users are very price sensitive. They wont buy wearables that cost as much as their main phone in droves.

Having a large addressable market doesn’t mean much if you can’t sell products at high enough prices to justify being in business.

In fact, the bigger problem Android has is that it provides a homogenous experience at pretty much every price point. Just like what happened with the pc market. A lack of profitability among all manufacturers in the sector leads to stagnation as no one can spend that much on r&d. That’s why the pc market has barely changed in the last 10-15 yrs.

There are two sides to every coin. Just like in the car market, high price cars and low price cars can exist and there a benefits to each business model.

The problem with tech is that we want one system to be dominant and we also want it cheap and we also want the best technology. You cant have all 3!

 

[BlandUsername]

evolve or die.

I dont think evolve is the right answer. diversify is a better term. I have an apple watch, I never wear it, I cant get past that something on my wrist discomfort. Never have, never will, and I am sure a portion of the apple community wont, a large portion however will feel perfectly fine with a weight on their wrist. Same thing with earpods, I cannot put items in, but outside the ear headphones just fine. I would love for a headphone type device with a microphone. just havent seen one yet from apple.

 

[FFR]

It’s all about the marketshare. And Apple is universally losing it, on all of their products. Every single one if I recall correctly.

But hey, stock price is up. That’s all that matters.

10 years, tops. Apple is on a decline and nobody even sees it.

So they are “universally losing it, on all their products” but it will take “ 10years tops”. “But stock is up”

.

 

[DNichter]

Huge opportunity and potential with wearables. Apple made the right call in pivoting to this area.

 

[Shanghaichica]

These 85% android users are very price sensitive. They wont buy wearables that cost as much as their main phone in droves.

Having a large addressable market doesn’t mean much if you can’t sell products at high enough prices to justify being in business.

In fact, the bigger problem Android has is that it provides a homogenous experience at pretty much every price point. Just like what happened with the pc market. A lack of profitability among all manufacturers in the sector leads to stagnation as no one can spend that much on r&d. That’s why the pc market has barely changed in the last 10-15 yrs.

There are two sides to every coin. Just like in the car market, high price cars and low price cars can exist and there a benefits to each business model.

The problem with tech is that we want one system to be dominant and we also want it cheap and we also want the best technology. You cant have all 3!

Maybe android users don’t even want a smart watch. There were many android wear watches at lower price points and they didn’t buy those in any great numbers.

 

[Bawstun]

So they are “universally losing it, on all their products” but it will take “ 10years tops”. “But stock is up”

.

Keep laughing. Motorola, Nokia and Blackberry thought it was funny, too.

Apple is losing brand image. iPods made them cool among kids - then their incredible design on laptops made them cool among professional elites. And then the iPhone.

But then came Tim Cook, a supply chain CEO. He is not an artist and has no intuitive process for design or function. He also doesn’t have the same restraint and attention to detail as Jobs.

These things matter. To a company on the scale and size of Apple, it takes many many years before the problems begin making themselves noticeable in stock price or marketshare. But years and years after Jobs’ death, we are at that tipping point.

Losing iPhone marketshare is not funny. Because marketshare is an emotional metric, it measures what people want *socially*, much more than a sales and upgrade revenue metric.

The wearables SOLD more units year over year, but their marketshare declined. The iPhone marketshare is entering free fall and will be reflected with the new iPhone quarterly sales - you will see.

At the current rate, with the current moronic tepid suits leading Apple, 10 years. That’s how long they’ve got before they’re forced to understand that money, not even 200+ billion cash on hand, can fix marketshare. You can’t buy marketshare.

 

[FFR]

Keep laughing. Motorola, Nokia and Blackberry thought it was funny, too.

Apple is losing brand image. iPods made them cool among kids - then their incredible design on laptops made them cool among professional elites. And then the iPhone.

But then came Tim Cook, a supply chain CEO. He is not an artist and has no intuitive process for design or function. He also doesn’t have the same restraint and attention to detail as Jobs.

These things matter. To a company on the scale and size of Apple, it takes many many years before the problems begin making themselves noticeable in stock price or marketshare. But years and years after Jobs’ death, we are at that tipping point.

Losing iPhone marketshare is not funny. Because marketshare is an emotional metric, it measures what people want *socially*, much more than a sales and upgrade revenue metric.

The wearables SOLD more units year over year, but their marketshare declined. The iPhone marketshare is entering free fall and will be reflected with the new iPhone quarterly sales - you will see.

At the current rate, with the current moronic tepid suits leading Apple, 10 years. That’s how long they’ve got before they’re forced to understand that money, not even 200+ billion cash on hand, can fix marketshare. You can’t buy marketshare.

Sure. Apple is doomed

Apple was doomed selling macs
Apple was doomed selling iPods
Apple was doomed selling iPhones
Apple was doomed selling iPads
Apple was doomed selling apple watches



Apple is doomed “ten years tops” just because

 

[JetTester]

Apple Watch is doomed. It has to be - it's made by Apple.

 

[Shanghaichica]

Keep laughing. Motorola, Nokia and Blackberry thought it was funny, too.

Apple is losing brand image. iPods made them cool among kids - then their incredible design on laptops made them cool among professional elites. And then the iPhone.

But then came Tim Cook, a supply chain CEO. He is not an artist and has no intuitive process for design or function. He also doesn’t have the same restraint and attention to detail as Jobs.

These things matter. To a company on the scale and size of Apple, it takes many many years before the problems begin making themselves noticeable in stock price or marketshare. But years and years after Jobs’ death, we are at that tipping point.

Losing iPhone marketshare is not funny. Because marketshare is an emotional metric, it measures what people want *socially*, much more than a sales and upgrade revenue metric.

The wearables SOLD more units year over year, but their marketshare declined. The iPhone marketshare is entering free fall and will be reflected with the new iPhone quarterly sales - you will see.

At the current rate, with the current moronic tepid suits leading Apple, 10 years. That’s how long they’ve got before they’re forced to understand that money, not even 200+ billion cash on hand, can fix marketshare. You can’t buy marketshare.

Maybe she

Keep laughing. Motorola, Nokia and Blackberry thought it was funny, too.

Apple is losing brand image. iPods made them cool among kids - then their incredible design on laptops made them cool among professional elites. And then the iPhone.

But then came Tim Cook, a supply chain CEO. He is not an artist and has no intuitive process for design or function. He also doesn’t have the same restraint and attention to detail as Jobs.

These things matter. To a company on the scale and size of Apple, it takes many many years before the problems begin making themselves noticeable in stock price or marketshare. But years and years after Jobs’ death, we are at that tipping point.

Losing iPhone marketshare is not funny. Because marketshare is an emotional metric, it measures what people want *socially*, much more than a sales and upgrade revenue metric.

The wearables SOLD more units year over year, but their marketshare declined. The iPhone marketshare is entering free fall and will be reflected with the new iPhone quarterly sales - you will see.

At the current rate, with the current moronic tepid suits leading Apple, 10 years. That’s how long they’ve got before they’re forced to understand that money, not even 200+ billion cash on hand, can fix marketshare. You can’t buy marketshare.

I think you need to take over from Tim as you know exactly what Apple need and how to do it.

 

[scrapesleon]

Upgraded from a series 1 to 4 that boy it hella fast

 

[kaneda]

I am still waiting for ShirtOS.

 

[Abazigal]

At the current rate, with the current moronic tepid suits leading Apple, 10 years. That’s how long they’ve got before they’re forced to understand that money, not even 200+ billion cash on hand, can fix marketshare. You can’t buy marketshare.

Market share is the means.

Profit is the end.

I don't understand why this forum is so obsessed with not only market share, but profitless market share at that.

Apple's falling market share belies the fact that they are selling a ton of devices in an absolute sense. 14% iPhone market share still translates to over 900 million active iPhone users. And I think it's also timely that Aboveavalon just published this article yesterday.

https://www.aboveavalon.com/notes/2019/5/30/apples-billion-users

And based on his analysis, the spending power of the users aggregated by Apple is insane. Average of $258 per user per year. Or to break it down even more,

• 200 million people spending an average of $25 per year (people in the gray market).
  
  
• 620 million people spending an average $260 per year (includes 400M iPhone-only users upgrading every four years).
  
  
• 180 million people spending an average $500 per year (Apple’s core users in the U.S. and a handful of other countries buying a number of Apple products and paying for various services and subscriptions).

Apple has more than enough users to sustain its own thriving ecosystem, given the spending power they command.

 

[Bawstun]

Maybe she

I think you need to take over from Tim as you know exactly what Apple need and how to do it.

Nope, I’m just an observer. I have no idea what they need to fix their problems in China and elsewhere, but I know a downgrade when I see it. I can thin objectively. They ruined the Apple Store experience, undoing everything Angela did would be a great start, reversing every single change/decision she made. Design should definitely be a focus - 3 years on the same design is too long and too stale. It isn’t grabbing attention.

Beyond that, I don’t know. I just know Apple is losing what once made it great, and they need a CEO who knows design. Apple has always been about design. Putting Cook at the top was and is a mistake. Very shortsighted
[doublepost=1559402164][/doublepost]

Market share is the means.

Profit is the end.

I don't understand why this forum is so obsessed with not only market share, but profitless market share at that.

Apple's falling market share belies the fact that they are selling a ton of devices in an absolute sense. 14% iPhone market share still translates to over 900 million active iPhone users. And I think it's also timely that Aboveavalon just published this article yesterday.

https://www.aboveavalon.com/notes/2019/5/30/apples-billion-users

And based on his analysis, the spending power of the users aggregated by Apple is insane. Average of $258 per user per year. Or to break it down even more,

• 200 million people spending an average of $25 per year (people in the gray market).
  
  
• 620 million people spending an average $260 per year (includes 400M iPhone-only users upgrading every four years).
  
  
• 180 million people spending an average $500 per year (Apple’s core users in the U.S. and a handful of other countries buying a number of Apple products and paying for various services and subscriptions).

Apple has more than enough users to sustain its own thriving ecosystem, given the spending power they command.

It does for now. Let’s see how much it snowballs in 10 years. Apple only survives because of the App Store ecosystem. If any other tech company captures lightning in a bottle while Apple is resting on their laurels, which I think will happen...then they are doomed. It only takes one product.

 

[Tech198]

People prefer convenience.. I think that's a safe bet.

 

[I7guy]

...You can’t buy marketshare.

Right, ask Android as they fight over the scraps of profit left by Apple. Apple is laughing all the way to the bank.
[doublepost=1559449430][/doublepost]

Nope, I’m just an observer. I have no idea what they need to fix their problems in China and elsewhere, but I know a downgrade when I see it. I can thin objectively. They ruined the Apple Store experience, undoing everything Angela did would be a great start, reversing every single change/decision she made. Design should definitely be a focus - 3 years on the same design is too long and too stale. It isn’t grabbing attention.

Beyond that, I don’t know. I just know Apple is losing what once made it great, and they need a CEO who knows design. Apple has always been about design. Putting Cook at the top was and is a mistake. Very shortsighted
[doublepost=1559402164][/doublepost]

It does for now. Let’s see how much it snowballs in 10 years. Apple only survives because of the App Store ecosystem. If any other tech company captures lightning in a bottle while Apple is resting on their laurels, which I think will happen...then they are doomed. It only takes one product.

First, according to MR, it would have only taken 5 years from 2011 for Apple to implode, even as their valuation and profits were going through the roof. Now it's 10 years from today. In 10 years it will be another 10 years for Apple to implode.

This post is not objective as no-one is prescient, it's very subjective.

Edit: if you’re certain short Apple or buy options. Walk the talk as they say.

 

[nikusak]

Maybe android users don’t even want a smart watch. There were many android wear watches at lower price points and they didn’t buy those in any great numbers.

Android Wear was and is quite awful, maybe that’s why. Samsung’s watches have done okay-ish, but they are not Android Wear.

Also, just like threesixty360 said: Android market is very price sensitive.

The “high end” Android market with affluent users is actually quite small.

 

[inkswamp]

It's amusing to watch how the "Apple has been lost since Steve died/Tim is a glorified bean counter" crowd are so quiet for threads like this. I wonder where they went.

 

[Bane-Thunder]

Apple Products I’ve bought in the past 3 years: MacBook Pro, iPad Pro, Apple Watch Series 1, Apple Watch Series 4. Notice no iPhone but two watches. I think wearables are replacing a lot of what the phone does for people. The iPhone has matured, the Apple Watch is still new and has compelling updates.

Lool a watch will never replace a phone. Being able to type on whatsapp, watching tv shows and movies on long commutes, these are things a watch will never be able to replace.

The day i get an Apple Watch is when its battery life is at least a week long and it will only server as a quick glance notification device and gps tool if I'm walking an needing directions.

It can replace being my music player for when im in the gym cause I would rather that then a phone in the pocket. But for what i mentioned earlier a watch can't replace those things.

 

[Abazigal]

Lool a watch will never replace a phone. Being able to type on whatsapp, watching tv shows and movies on long commutes, these are things a watch will never be able to replace.

This statement alone shows a very fundamental misunderstanding of what the Apple Watch is for.

Its purpose is not to replace an iPhone altogether, but to take on some of the tasks an iPhone can do, while also performing some other tasks that an iPhone cannot.
[doublepost=1559560981][/doublepost]

It's amusing to watch how the "Apple has been lost since Steve died/Tim is a glorified bean counter" crowd are so quiet for threads like this. I wonder where they went.

They will be back. They always return, but for now, let's enjoy this brief respite.