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Apple Watch Losing Ground to 'Basic Wearables' Like Fitbit Ahead of New Models

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New data from market research firm IDC shows a split in the wearables market, with "basic wearables" (Fitbit) gaining popularity, and "smart wearables" (Apple Watch) seeing stalled growth. Despite a portion of the market stalling out, the overall wearable device market grew 26.1 percent in comparison to the year ago quarter, suggesting the burgeoning technology is gaining traction among consumers.

IDC specifically categorizes basic wearables as those devices without third party application support and smart wearables as any device with support for third party applications. Comparing each section's growth from last year, the research firm said that the two categories "traveled at different speeds and directions" in 2016, with basic wearables up 48.8 percent from 2015, and smart wearables down 27.2 percent year-over-year. In total, basic wearables represented 82.8 percent of every wrist-worn device shipped during the quarter.

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Basic wearables, which include most fitness trackers, have benefited from a combination of factors: a clear value proposition for end-users, an abundant selection of devices from multiple vendors, and affordable price points," said Ramon Llamas, research manager, Wearables.

"Smart wearables, meanwhile, are still struggling to find their place in the market," added Llamas. "There is plenty of curiosity about what smart wearables - particularly smartwatches - can do, but they have yet to convince users that they are a must-have item. The good news is that smart wearables are still in their initial stages and vendors are slowly making strides to improve them. But this also means that it will be a slow transition from basic wearables to smart wearables."
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Apple, representing the smart wearables section of the market, was the only company among the leaders in the wearable market to post a year-over-year decline in shipment volumes, which IDC ascribes mainly to the lack of a second generation Apple Watch on the first generation's anniversary last March. Specifically, Apple again finished third in the overall wearables market with a 7 percent market share and 1.6 million units shipped. In the first quarter of the year, Apple had a 7.5 percent market share and approximately 1.5 million sales for the Apple Watch.

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As the Apple Watch stalls, Fitbit has grown, with a 25.4 percent share of the market and 5.7 million units shipped in the second quarter, compared to a 24.5 percent share and 4.8 million units in the first quarter. Because the company's name remains "synonymous with fitness bands," IDC believes its reign will continue in the wearables market. Until smart wearables with various functionalities can justify higher prices to consumers, a more affordable wearable with "a clear value proposition," i.e. fitness-focused features, will help Fitbit remain on top of the market, according to the firm.

Any slowdown in market share of the Apple Watch could also be attributed to prospective buyers holding out for the second generation device, now expected to be announced during Apple's media event set for tomorrow, September 7. In addition to a thinner display and larger battery, the Apple Watch 2 is believed to include GPS, an improved processor, and better waterproofing.

Article Link: Apple Watch Losing Ground to 'Basic Wearables' Like Fitbit Ahead of New Models
 
Article Link
https://www.macrumors.com/2016/09/06/apple-watch-losing-ground-fitbit/
Could this have something to do with the high price? (Hint: Apple Watch is too expensive!)

iPad mini 2 $269.

Apple Watch $299.

One is incredibly more useful and doesn't require daily charging.

Apple Watch should be priced at $99. It requires an iPhone purchase to work.
Apple Watch could be a gateway to iPhone / iOS world at a much lower price.
 
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Price is probably a factor but I think a lot of it is that watch 1 isn't all that useful beyond basic notifications. Don't get me wrong, I love mine, but when people ask me about it I doubt my answers convert them to go buy one of their own. Watch 2 might change that, we'll see.
 
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smacrumon said:
Could this have something to do with the high price? (Hint: Apple Watch is too expensive!)

iPad mini 2 $269.

Apple Watch $299.

One is incredibly more useful and doesn't require daily charging.

Apple Watch should be priced at $99. It requires an iPhone purchase to work.
Apple Watch could be a gateway to iPhone / iOS world at a much lower price.
Click to expand...

Actually Apple Watch being compared to basic wearables is actually a testament to its popularity. Their sale numbers have so surpassed other smart watches, that the only competition left is wearables. A category it is not a part of.
Puts it in perspective doesn't it?
 
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Apple should make a fitness band and do it right. If they could make something to compete with the likes of Garmin and Fitbit and sell it for around the £150 - £180 mark, they'd get my money. The Apple watch is pretty ugly IMO and has a very limited market especially at the current price point. Like a lot of other people, I don't need another watch and the Apple watch never seemed to do much more than a Vivosmart HR but it costs at least twice as much!
 
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2010mini said:
Actually Apple Watch being compared to basic wearables is actually a testament to its popularity. Their sale numbers have so surpassed other smart watches, that the only competition left is wearables. A category it is not a part of.
Puts it in perspective doesn't it?
Click to expand...
Not really. Many consider it a "wearable".
 
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Pulling out $350+ worth of value is pretty difficult on an AW.

Yeah, maybe exercising could make it worth it, but the cheaper fitness trackers can already do that.

There's really not much else to justify getting notifications on your wrist, unless you're working a crazy schedule with constant appointments and messages.

I've had one since day one, but truly, it needs to come down in price or get significantly better (at what? I have no idea. Wearables overall need an overhauled direction IMO)
 
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Price point and because people don't really want (not yet) a computer on their wrist. None of the current offerings available can really be called "smart" watches. Not yet. More like a bunch of featured thrown into a wearable.
 
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Just like the iphone 7, AW2 has little to offer for those who purchased the previous generation device. For those who have older devices or didn't purchase AW1 there's a lot there.. or you could just get AW1 and save some coin.
 
If Apple Watch became independent of the iPhone then I think it would sell more. (If it was somehow able to run a duplicate SIM as what's in the iPhone so it's the same number and same data plan without additional costs and without the need to carry your phone, I think their sales would triple).

I was given a Shine as a gift, but I never wear it because it just doesn't have enough features. I don't own an Apple Watch because it doesn't have enough features. I'm hoping the Apple Watch 2 will have enough for me to pull the trigger, but as it stands, I can't justify buying it.

I guess that's why so many people buy the cheap fitness trackers: because all the wearable products out there are lacking so they figure they might as well get a cheap one.
 
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