Apple Watch Dominates Cellular-Enabled Smartwatch Market

[MacRumors]

Apple Watch Series 3 models with LTE have dominated the cellular-enabled smartwatch market since they were released last September.

Specifically, the Apple Watch accounted for an estimated 59 percent of the worldwide cellular-enabled smartwatch market in the first quarter of 2018, according to data shared by research firm Canalys today.

Canalys senior analyst Jason Low says the cellular capabilities have been key to the success of the Apple Watch Series 3 lineup:

Key to Apple's success with its latest Apple Watch Series 3 is the number of LTE-enabled watches it has been able to push into the hands of consumers. Operators welcome the additional revenue from device sales and the added subscription revenue for data on the Apple Watch, and the list of operators that sell the LTE Apple Watch worldwide is increasing each month.

Low added that Apple has taken advantage of a lack of high-end competition in the cellular-enabled smartwatch market:

While the Apple ecosystem has a strong LTE watch offering, the lack of a similar product in the Android ecosystem is glaring. If Google decides to pursue the opportunity with a rumored Pixel Watch, it would jump-start much needed competition in this space.

There are a handful of Wear OS smartwatches with LTE available, such as the LG Watch Sport, LG Watch Urbane, and Huawei Watch 2, but third-party app support and software updates are lackluster compared to the Apple Watch.

Canalys estimates that Apple Watch shipments totaled 3.8 million units in the quarter, including non-cellular models, making it the world's most popular wearable, even though several other competitors in the top five sell a wide range of comparatively inexpensive fitness trackers and activity bands.

Chinese company Xiaomi, for example, shipped an estimated 3.7 million wearables in the quarter, but Canalys notes that more than 90 percent of those shipments were Mi Bands, priced as low as $20 to $25 in the United States.

Apple Watch pricing starts at $249 for Series 1 models, while Series 3 models with LTE retail for $399 and up, in the United States.

Apple doesn't break out Apple Watch sales as it does with iPhones, iPads, and Macs. Instead, it groups the watch under its "Other Products" category, alongside the Apple TV, AirPods, Beats, iPod, HomePod, and accessories. Canalys and other research firms look for clues in Apple's earnings reports to estimate shipments.

Apple CEO Tim Cook did vaguely reveal that Apple Watch revenue reached a new record in the first quarter of 2018:

Apple Watch had another great quarter with revenue growing by strong double-digits year-over-year to a new March quarter record. Millions of customers are using Apple Watch to help them stay active, healthy, and connected, and they have made it a top-selling watch in the world.

Apple Watches have grown so popular that, in the final three months of 2017, worldwide shipments outpaced all Swiss watch brands combined for the first time, according to IDC senior research director Francisco Jeronimo.?

Article Link: Apple Watch Dominates Cellular-Enabled Smartwatch Market

 

[macduke]

I hope Apple removes the stupid red dot when they redesign this autumn. I'm finally ready to upgrade my Series 0!

 

[OldSchoolMacGuy]

To be fair, there are few other players. Most people asked to name cellular enabled smartwatches will struggle to name more than just the Apple Watch.

 

[ArtOfWarfare]

I feel like a smartwatch could make for a really fantastic wallet replacement.

Apple Pay, obviously, but then also boarding passes, driver's license/other ID, etc. I feel like how cheap they are (relative to a phone) means that if an officer is asking for your driver's license, people would have less reservation than if they were handing over a phone.

Plus the moment it's off your wrist, it can go into a locked mode where it's not going to give the officer anything but your driver's license.

Heck, if we're going with the idea of it being something you hand over, I'd be okay with giving it to waitstaff at a restaurant to run like it's a credit card.

 

[OldSchoolMacGuy]

I hope Apple removes the stupid red dot when they redesign this autumn. I'm finally ready to upgrade my Series 0!

A lot of people want something that allows others to know what they have. There's a reason people pay big money for the emblems on their cars.

Here are some stickers if you really hate it.
https://www.amazon.com/CoverCrown-Digital-Premium-Cellular-Aluminum/dp/B076DKTR1K

 

[LordVic]

To be fair, there are few other players. Most people asked to name cellular enabled smartwatches will struggle to name more than just the Apple Watch.

that was my first reaction.. "wait.. there are other guys out there making cellular enabled wearables?" There really aren't a lot. I think MOST of us are more than content with having it an extension of our smartphone when we're out, and WiFi enabled when we have access.

Also in confusion. How does this article get any of the values it claims to have? "We don't know the breakdown of Apple's device sales since Apple won't give us a breakdown, but we believe Apple's Cell based is the best selling cell based watch!"

it's literally pulling a claim out of it's rear-end. I don't doubt the claim as nobody seems to be playing in the Cell enabled watch space except for one or two players... But the claim's logic is dubious.

 

[NinjaHERO]

They seem awesome. I'll be happy to grab one after the next refresh. Looking forward to seeing how much Apple improves them.

 

[seatton]

My watch is LTE, but I don't use that feature. I got it because the SS version does not have a non LTE version. The monthly fee they charge here in the US is too ridiculous.

 

[Aston441]

I was hoping the iWatchLTE would be a little iPhone on my wrist.

Sadly, Apple's developer restrictions are so onerous it's almost impossible to make a good untethered watch app. The watch is still nearly useless without being phone tethered.

I won't buy any more iWatches unless Apple lets people make real apps for it.

Still just an expensive toy.

 

[npmacuser5]

My watch is LTE, but I don't use that feature. I got it because the SS version does not have a non LTE version. The monthly fee they charge here in the US is too ridiculous.

Apple Watch LTE will still work for emergency calls without a phone plan. Nice bonus.

 

[Rojaaemon]

If only it weren't such a fat, boring blob.

 

[ignatius345]

Is anybody here using an Apple Watch regularly as a standalone device? Like, going out regularly with just an Apple Watch and no phone. I'm curious to see if this is doable yet.

 

[groadyho]

I'd buy and use an Apple watch if it wasn't iPhone dependant to work. Apple is on to something with the watch, it just needs to be more useful than gadget.

 

[Carlanga]

To be fair, there are few other players. Most people asked to name cellular enabled smartwatches will struggle to name more than just the Apple Watch.

and yet apple only has 59% of the market.

 

[JosephAW]

I'm wondering how Apple Watch fairs with static discharges vs Fitbit devices.

http://newyork.cbslocal.com/2018/05/21/fitbit-fitness-fail/

 

[Applebot1]

This is one Apple product I’ve not bought into as it’s not compelling enough. It’s getting there but I still want to see improved battery life which admittedly is an industry wide issue.

 

[Bswails]

I used the cellular feature 0 times on my watch during the free trial period with T-Mobile lol..I did get rid of it because it’s crazy to pay more per month for a number I’m already paying for..not to mention the usage will be so small it should be criminal to charge for! If T-Mobile gets rid of the extra fee to use the Apple Watch I think T-Mobile and Apple would see even better numbers

 

[AppleZilla]

I have a cellular Apple Watch, but I discontinued the service after the three month trial. $15+ (including fees etc) for a connection that gets you no extra data is insane.

 

[macguru212]

I'm holding out for an integrated FaceTime camera so I can get my Dick Tracy thing going.

 

[BuddyTronic]

I hope Apple removes the stupid red dot when they redesign this autumn. I'm finally ready to upgrade my Series 0!

The red dot could be there for a reason.

 

[JadawinUK]

To be fair, there are few other players. Most people asked to name cellular enabled smartwatches will struggle to name more than just the Apple Watch.

Microsoft has 100% marketshare in the Windows OS market. ^^

 

[BuddyTronic]

I'd buy and use an Apple watch if it wasn't iPhone dependant to work. Apple is on to something with the watch, it just needs to be more useful than gadget.

Yah, the cellphone capability is useful. I mainly use it to track activity, and then all the automatic stuff it does. It's especially good when I don't have my iPhone within reach - at home, and in the car.

Getting navigation is nice from iPhone and it's made better by vibrating the Watch when the next turn is coming up - lots of "non gadget" automatic stuff built in. Worth having - I did not wear a watch for over 10 years, and now I am using the Apple Watch. Charge lasts me 2 days if I forget to charge it, sometimes a bit more. I am old and can barely see it, but it still is a must have for me.

 

[PlainviewX]

Not hard to dominate a non-existent market.....

 

[BuddyTronic]

Not hard to dominate a non-existent market.....

Non-Existent Market you say?

It is Billions and Billions of Dollars. Maybe $30 Billiion market by 2020 they say. It's HUGE.

So I disagree with what you say here.

 

[jicon]

Heck, if we're going with the idea of it being something you hand over, I'd be okay with giving it to waitstaff at a restaurant to run like it's a credit card.

Or giving them your phone... I think either way, there is a timeout requiring a password in either scenario. Giving a credit card to waitstaff though? I would expect restaurants will change in the US soon to use wireless payment devices. Waitstaff can bring the wireless machine to your table, run the watch over the unit... paid.

The watch wallet already can do ticketmaster, aeroplan and airline tickets, so really pretty handy as is.