IDC: Maybe Not Everyone Needs Smartwatches

By Dane Lorica, | October 28, 2016

The Samsung Gear Smartwatch. Do you need it?

The Samsung Gear Smartwatch. Do you need it?

Smartwatches may be useful and trendy but unlike smartphones, their sales remain on the low.

Apple products are doing well on the market except for its smartwatch which only totaled to about one million shipped units in the third quarter of this year. This is significantly lower than the 3.9 million devices shipped in 2015.

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Garmin remains competitively strong, with its growing but low sales. However, new versions of the brand's units were not yet released prior the assessment of sales.

International Data Corporation (IDC) Senior Research Analyst Jitesh Ubrani stressed that smartwatches are evidently not for everyone.

"Having a clear purpose and use case is paramount, hence many vendors are focusing in fitness due to its simplicity," he added.

In fact, Apple is concentrating on creating watches for health and fitness and withdrawn from creating fashion accessories. The company stopped the retail of its smartwatch edition worth $10,000 last month.

According to the data released by IDC, Apple suffered a 71.6 percent year-on-year plunge in smartwatch shipments while Samsung only shipped less than half a million of its Gear and Gear 2 models in 2015 and this year. Moto360 of Lenovo was the biggest loser with a 73.3 percent decline in sales.

IDC explained that the poor performance of smartwatches on the market may be due to delays in the Android Wear, bad debut timing, and many others.

Apple Smartwatch was only on the market for two weeks. Experts believe that other factors such as the availability of the device in larger markets, upgraded features such as water resistance and GPS may boost its sales.

It is presumed that users "differentiating the experience of a smartwatch from the smartphone will be key" to improving the market status of the device.

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