Apple Watch Dominated Holiday Season With Estimated 5.2 Million Shipments

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Apple shipped a record-breaking 5.2 million Apple Watch units last quarter, making it by far the most popular smartwatch of the holiday shopping season, according to the latest data from research firm Strategy Analytics. Apple captured an estimated 63.4% of the worldwide smartwatch market during the quarter.


Apple's closest competitor Samsung shipped only 800,000 smartwatches in the quarter, for an estimated 9.8% market share, according to Strategy Analytics. All other smartwatch vendors, such as Garmin, Fitbit, and Huawei, combined for an estimated 2.2 million shipments and 26.8% market share.


"Demand for Apple's new Watch Series 2 as a holiday-season gift in Western markets was surprisingly strong and it enabled Apple to clear a large backlog of smartwatch inventory during the quarter," said Strategy Analytics director Cliff Raskind.

It is important to acknowledge that these are estimated figures, and that shipments do not necessarily reflect sales.

Apple does not break out Apple Watch sales like it does with iPhones, iPads, and Macs, and instead groups the device under its "Other Products" category. Given the category also includes the Apple TV, Beats products, iPods, AirPods, and other accessories, figuring out Apple Watch revenue is deliberately challenging.

Apple only elected to share that the Apple Watch set all time sales records during the first quarter of its 2017 fiscal year, with CEO Tim Cook noting holiday demand was "so strong" that Apple "couldn't make enough."

Strategy Analytics will not disclose its exact methodology for competitive reasons, but executive director Neil Mawston told us the company uses "a blend of channel checks, financial analysis, and other sources" to estimate Apple Watch shipments. "It is the same methodology we have used for phones since the 1990s and for wearables since the modern market first emerged circa 2013."

Apple saw its "Other Products" revenue drop 8% to $4.02 billion in the quarter compared to $4.35 billion in the year-ago quarter, a sizeable decline that Apple financial chief Luca Maestri attributed to declining Apple TV sales.

Strategy Analytics said the smartwatch industry is showing "tentative signs of recovery" this year, but Raskind noted there remain "several barriers to growth" that must be addressed.
Smartwatch vendors like Samsung need to launch more exciting or cheaper models, Apple must engage closer with mobile operators to stock or subsidize its popular Watch portfolio, while component makers need to develop more accurate sensors for health and fitness tracking that consumers will trust and use more.
Apple Watch shipments totaled 11.6 million units in 2016, or slightly more than half of the estimated 21.1 million smartwatches shipped by all vendors in the year, according to Strategy Analytics. The firm's data shows a slightly lower 20.8 million smartwatches were shipped globally in 2015 for comparison.

Article Link: Apple Watch Dominated Holiday Season With Estimated 5.2 Million Shipments
 

gugy

macrumors 68040
Jan 31, 2005
3,379
4,132
La Jolla, CA
Yeah, I've got the AW Nike+ and honestly I am enjoying for workouts. I am a swimmer and it's pretty neat to see all data there. It's definitely pushing me harder on workouts.
I am not in love with the look of it but it has been nice using it and another feature I like is unlocking my Mac screen every time it wake up from sleep.
 

TigerWoodsIV

macrumors 6502a
Apr 3, 2010
576
415
I took the plunge because the S1 was on sale at Target for $219. I had a $50 Target gift card, and since I never shop there, figured why not? I could definitely live without it, but since I paid around $180 after tax, it was the right price. Doing most things with it is slower than taking out my phone obviously, but I like it as a fitness tracker or when I just want watch functionality, and notifications aren't bad. I'm not really surprised they're dominating the market. There's no reason to buy anything else unless you use android.
 
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WRChris

macrumors 6502a
Aug 17, 2016
655
932
Indiana
Apple updated it with the watchOS 2.0 which was much faster, and watchOS 3.0 which was even faster and the batt life improved even more.

I think you are confusing updates -> make device slow from other brands to Apple...
Really? I think you either have a short memory or aren't very old. They haven't slowed the Watch down like they have the old gen phones but make no mistake it will happen
 

Awfisch

macrumors regular
Feb 1, 2011
101
49
Upgraded to the Series 2 from the original and love it! Battery life is phenomenal and believe it or not, I actually enjoy using it as a watch. I always find myself checking my wrist even when it's not on. Looking forward to see where these go in the future!
I have Series 0, and it's incredibly slow – to the point that it's usually faster to pull my phone out. Did you notice a big speed change with Series 2 that made it more useable?
 
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diegov12

macrumors member
Dec 29, 2015
93
184
So in total Apple has sold over 25 million watches. Pretty impressive. Cracks me up how some people call it a flop.
Thats because they like to compare it to the iPhone.
Truth is, the iPhone is the most successful business in modern history, and it keeps braking records despite its age.

Many people can't understand that that kind of thing can't be replicated.
Just ask M$ the "innovate" and their surface line.
 

jerry16

macrumors regular
Sep 12, 2016
236
1,875
across the universe
I have Series 0, and it's incredibly slow – to the point that it's usually faster to pull my phone out. Did you notice a big speed change with Series 2 that made it more useable?
100% improvement. Speed was my only complaint about the Series 0. I remember dictating replies to messages or trying to summon Siri was just so painfully slow I didn't want to use it. Honestly, it's how I justified the upgrade. Glad I did it - zero complaints now.
 

vertical smile

macrumors 603
Sep 23, 2014
5,009
5,974
Apple saw its "Other Products" revenue drop 8% to $4.02 billion in the quarter compared to $4.35 billion in the year-ago quarter, a sizeable decline that Apple financial chief Luca Maestri attributed to declining Apple TV sales.
IDK, it looks like AW shipments have decreased almost 15% year to year, could this be the reason for the 8% drop? or am I looking at the data wrong?

Edit: never mind, I missed the "quarter" part of the quote....
 

OllyW

Moderator
Staff member
Oct 11, 2005
17,112
6,487
The Black Country, England
According to that data Apple shipped 2m less AW in 2016 (11.6m v 13.6m in 2015) approx 15%drop! Going the wrong way Tim!
I was looking for this typical macrumors reader comment.
Was not disappointed.
It's a fair comment and I'm surprised it wasn't picked up in the article, especially as the estimates for the first year's sales only covered an eight month period in limited markets and 2016 was for a full year with much wider distribution.
 

nfl46

macrumors 604
Oct 5, 2008
7,280
5,493
You can get a Series 0 for under $200. It's hard not to give it a try at those prices.
 
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