Apple Watch Drops to Just 5% Share of Wearables Market as Basic Fitness Trackers 'Reign Supreme'

[gugy]

I hear you on giving up on a conventional watch - my Seiko Automatic, now 12 years old, still gets compliments and has never let me down, including scuba diving (shallow ocean depths). I just can't see giving up wearing it, even if I do recognize the benefits of the Watch.

Yep, I have my Omega for almost 25 years and it keeps running strong. I am thinking using the AW just for exercise but like I said, I would love more like a bad companion to my Omega. The AW is too overkill IMO but we'll see. I might end up enjoying it but honestly I am not really in love with the design of it. It's OK. A discreet band would be fantastic if Apple could make one.

 

[doelcm82]

The Apple Watch is fugly and you have to charge it every night just like everything else they make. A Rolex is a watch. An Apple Watch is a gimmick.

It's been decades since I wore a watch. I see Rolex as pretentious jewelry.

I do wear an Apple Watch.

 

[SeattleMoose]

Because nobody wants a teeny tiny iPhone with a hard to see screen. I thought the iWatch was a dumb idea (e.g. iPhone 7 HP jack, MacBook Pro ports, etc.) then and now sales back this up. A cheaper "health only" monitor on the other hand, here is the proof.

 

[Westside guy]

Cost is a big factor of course. I haven't had the need for it but if I did the price matters. Otherwise no thanks.

I agree, however the separation between "high end fitness tracker" and "low end Apple Watch" isn't nearly as big anymore.

Disclaimer: I used a Garmin Vivosmart for about 16 months, but decided to get a Series 1 Apple Watch when they came out. Of course what I found most useful about the Vivosmart was really the notifications, not the fitness tracking; and the Watch runs circles around it for that purpose. The fitness tracker stuff was really useful... for about a month. After that, my behavior changes were pretty much ingrained, so the ongoing usefulness waned.

 

[dannys1]

LOL!! The Apple Watch is by no means the Ferrari of watches.

Key word being smart watches, not watches per-se obviously.
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$250 for a watch and you compare it to a Ferrari. Laughable.

The watch didn't catch on. It's not really what people are looking for. Member the deluge of comments saying this was going to fail? Too redundant, too bulky, too costly. Ferrari pricing and not even as useful as a ford focus considering most people have a Ford F-150 of a smartphone in their pockets.

I bet you're fun at parties.

 

[Russlush3]

I think this just goes to the core of what people want from wearables (now that we've gotten over the awe of the new flashy products). I have a Moto360 and a Garmin 235. While the Moto 360 has a lot of "cool" and "futuristic" tricks, the Garmin has functionality. I prefer to have an always-on screen. I prefer to have extremely accurate GPS when I go for my runs. Perhaps most importantly, I prefer to have a watch that last 1-2 weeks on a single charge. If I want to be notified of everything coming into my phone, I can turn on the bluetooth (but usually I just find it annoying). My partner also sold his Apple watch. These "smart watches" have simply failed to meet our needs for functionality, and until they do so, they're not going anywhere.

 

[dannys1]

The least expensive Ferrari is also 8x more expensive than the most expensive Ford Focus. The 38mm AW Series 0 sport is, what 1.5x more expensive than a Fitbit Charge 2, 1.3x than a Blaze?. Bit of a far fetched comparison between Ferrari:Apple to Ford:Fitbit. The AW sport is in no way unaffordable for most people like the Ferrari California is and also is not a status symbol or representative of outstanding performance by its industry.

The reality is Apple is the only real game in Smartwatches right now. As a smartwatch the category is still trying to find its niche -- and people are trying to understand it. As an activity or sport watch AW is mediocre, not superior like a Ferrari, even a "low end" California. AW does everything a Fitbit does but nothing a real running/biking/hiking/triath watch can do. So if one is only looking for an activity band Apple doesn't really make much of a case why people should spend more on AW than a Charge 2 or Blaze. They all count steps, HR, show notifications. AW apps are a PITA to use. It's a lot quicker to just take out your damn phone. I say this even as I still wear mine -- but not for running. I wear a real running watch for that. Apple has a lot of work to do before AW is a tech must have like iPod was and iPhone is.

it was just a joke man, you know I did sit there and work out the mathematically difference between various car brands to see which had the most accurate times modifier to make my joke factually correct, christ.

At some point in the article they were comparing it to sales of a $14.99 Xiaomi device though.

 

[DUIduckSAUCE]

This doesn't surprise me. We have 3 apple watches in the house and nobody wears them. The thing with the Apple Watch is you have to leave a your nicer watches at home. With a fitness band you can wear both at the same time.
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The Apple Watch is fugly and you have to charge it every night just like everything else they make. A Rolex is a watch. An Apple Watch is a gimmick.

It is definitely a more a fitness tracker than it is a quality timepiece.

 

[jujufreeze]

When Ive became fascinated with wristbands and designing "naked trees" you knew Apple was in trouble. They've lost the plot.

 

[DUIduckSAUCE]

In what world is a Fitbit 30 dollars? They go all the way up to 250, which is around the Apple Watch starting price. Obviously you can get them for cheaper, but you're being a bit silly on the price there. Comparable smart watches are around the same price range.

This. None of my non apple purchases were ever made because they cost less.

 

[00sjsl]

One is a do it all smart watch. The other is something that simply counts steps and can be had for as little as $60. Is this really comparable?

Someting like a Fenix 3 does alot more than count steps, and is priced comparably with an apple watch. I suspect the short battery life may put people of getting an apple watch, also the prospect that Apple may ditch it if it fails to sell well.

 

[DUIduckSAUCE]

Just got a series 2, and it is absurdly overhyped and overpriced. Nothing works well except for the time. Heart rate monitor is wildly inaccurate, so essentially you're paying $400 to track the treadmill and elliptical exercises that those machines are already report on the screen. Apps load slowly, battery life is a little over one day.

I'm probably going to return it and get a more fitness goal oriented tracker, since right now I own a fashion accessory.

I would recommend this.
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But fashion! Appointments to try on to buy! It has to be elite, quick, give limited editions away to celebrities! Our store workers were born to sell these.

Ya Apple, ran right into the wall with Angela's marketing strategy with this device. Maybe they should have created a $10,000 gold version too to top off the mistake their marketing campaign was.

Sub $200 seems like the sweet spot they should have gone for on release day.

I think apple has had the right strategy. Market these thing towards women as fashion watches. Offer a bunch of different options in straps. And voila you can reap huge profits. I believe apple dominates the Watch industry in profits. I do not know a man that wears an Apple Watch , but I do know quite a few women who own more than one.

that's a terrible comparison. lol

apple watch 400$ avg? basic fitness watch 100$?

how about a MB E Class to a Toyota Camry

corolla v Camry

 

[DevNull0]

i can understand why this is honestly. it is a premium device.

Ive had my apple watch for almost a month and I'm quite impressed so far.

Yet wasn't Apple making fun of Rolex in the spring because the $500 apple watch had more market sales than the $10,000 and up Rolexes that require regular service which alone costs more than the apple watch.

They can't have it both ways.

 

[Chupa Chupa]

It doesn't have to be a Ferrari for comparison. That's just the extreme. How is a Ford Focus compared to a low end luxury SUV? That's a more accurate analogy. Some people just want a car, some people want one that can also do more things and is nice to ride in.

Mine is used for notifications, alarms, quick replies, etc. If the watch could do more without actually opening an app, it would really become more useful. Give it an action button, have it work similar to a Flic in that you can program a few different functions to that button depending on press, double press, hold.

Sure, but that is your analogy and I was responding to the other poster's, as you say "extreme" analogy. I think yours is more on point except for the luxury part. The basic AW is no more luxury anymore than a stripped BMW X1. Decent, but not luxurious.
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it was just a joke man, you know I did sit there and work out the mathematically difference between various car brands to see which had the most accurate times modifier to make my joke factually correct, christ.

At some point in the article they were comparing it to sales of a $14.99 Xiaomi device though.

Does one really need to work out the math between the cost of a Ferrari and an entry level Ford? Sorry if I did not detect sarcasm in your post, but I did not. A lot of AW apologists around here so can't be difficult to sort out the hyperbolic posts from the serious ones.

 

[DevNull0]

Yeah, I would like to see the profit taken figures. I'm sure it would be another "Apple has 98% of profit in the wearables market." (I hope no one took a loss because I don't want to have that "how can you have more than 100% of the profits argument again.")

Why should a consumer care if the company managed to squeeze the maximum profit out of them or not?

 

[DUIduckSAUCE]

How many times do we need to have this "discussion" about Apple focusing on profit margins primarily? Their market share is secondary at best.

It is important to investors. Profit margin is great , but if you don't grow in market share it makes it much more difficult for your profits to continue to increase.

 

[Nunyabinez]

Why should a consumer care if the company managed to squeeze the maximum profit out of them or not?

Why would a customer care about market share?

 

[DevNull0]

I don't understand why these things are compared. Basic fitness-only wearables are a completely different product from Apple Watch. Most of that market is not going to buy an Apple Watch instead.

When digital cameras first came out, polaroid smugly sat on their hands saying we have 100% of the self-developing photo market so we don't need to worry or innovate. The reality was they were competing in the instant-gratification photo market and they were wiped out by digital in that market amazingly fast.

The Apple watch is just an over-hyped fitness band. Even Apple knows that, watch any apple watch commercial since series 2 came out.
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It is important to investors. Profit margin is great , but if you don't grow in market share it makes it much more difficult for your profit margin to increase.

This is a forum for Apple enthusiasts, not investors. And as an investor I do a heck of a lot better in Canadian banks and Canadian Telco's than I would do in Apple stock. As a consumer, I'm a heck of a lot more interested in Apple products than in savings accounts and cable tv packages.

 

[DUIduckSAUCE]

When digital cameras first came out, polaroid smugly sat on their hands saying we have 100% of the self-developing photo market so we don't need to worry or innovate. The reality was they were competing in the instant-gratification photo market and they were wiped out by digital in that market amazingly fast.

The Apple watch is just an over-hyped fitness band. Even Apple knows that, watch any apple watch commercial since series 2 came out.
[doublepost=1480965633][/doublepost]

This is a forum for Apple enthusiasts, not investors. And as an investor I do a heck of a lot better in Canadian banks and Canadian Telco's than I would do in Apple stock. As a consumer, I'm a heck of a lot more interested in Apple products than in savings accounts and cable tv packages.

This article was published by a market research firm and intended for investors not consumers.

 

[The Game 161]

The apple watch fills it’s purpose for me. Notifications, fitness and checking my texts on the go. Some just want it to do too much like a phone.

 

[Mainsail]

I understand why some folks say the AW should not be lumped in with fitness trackers, but the truth is the lines are starting to blur and the products do compete with each other in some segments. For example, last year, I bought my college aged daughter an AW for xmas. She really didn't want something so expensive for school, and she was going to be traveling abroad and didn't want to be a target. So, I got her a fitbit. Tons of college students are wearing them. For many people, fitness tracking and simple notifications are all they need. So, they opt for the lower cost option with the longer battery life. I think there is definitely competion between the AW and modern trackers like the Fitbit Charge 2.

 

[canyonblue737]

Couple of points:

1. The marketshare matters very, very little (see iPhone where the market share grows smaller and smaller by the day dwarfed by Android yet earns nearly 90%+ of all mobile phone industry PROFITS) it is the PROFIT share that matters. It is quite possible that the likes of Fitbit are selling with sliver thin margins while Apple is collecting a bank vault load.

2. That said the Apple Watch remains for me a disappointing product. I was an early adopter by 1 year in I quit. The product remains too underdeveloped and the UI even under watchOS 3 is a mess. I have Apple EVERYTHING and this is the first time when people ask me what I think I have to pause and say "not great."

 

[0098386]

I expect a huge part of this is how lacklustre the second generation update was.

 

[Pootmatoot]

I'm genuinely surprised the Misfit Ray line hasn't taken off.

It's the only fitness tracker that doesn't look like you're a background extra from Star Trek. These things looking idiotically pretentious is what stops a lot of normal people getting them.

 

[Prof.]

I genuinely enjoy how analytical and critical MR users are. If only everyone else could think so critically of what they read/hear.

(note: this isn't sarcasm.)