Apple shipped 3.5 million units of its smartwatch globally in Q2, 2018, according to a Canalys report. The worldwide shipments of Apple smartwatch was up by more than 30 per cent in the same period last year. The overall global smartwatch shipments in the second quarter was 10 million units. Thanks to companies like Fitbit and Garmin, which now have a diversified portfolio of smartwatches, Apple’s share of the smartwatch market fell to 34 per cent from 43 per cent in Q1, 2018.
As per the report, Apple Watch 3 LTE version was a huge success in Asian markets. Apple shipped more than 250,000 units of its smartwatch in Asia (excluding China), 60 per cent of which was LTE version. Apple Watch Series 3 with cellular connectivity was also the best-shipping smartwatch in Asia in Q2, 2018.
Canalys Senior Analyst Jason Low attributes this to Apple’s partnerships with operators in countries such as Australia, Japan, Singapore, Thailand, India and South Korea, who are willing to resell cellular-connected smartwatch to generate extra revenue from data services. “Apple’s decision to expand internationally with operators has quickly reaped rewards in Asia Pacific. India is a surprising addition to the list of countries. But this is a good strategy by Airtel and Reliance Jio to retain their high-value customers in a bid to minimize churn in a cut-throat market,” said Low in a statement.
A previous Canalys report, Apple managed to top 18 million watch shipments in 2017, which was a 54 per cent growth over 2016 figures. Apple Watch Series 3 drove a major part of the growth for the watch segment with just under 9 million shipments for the new model. Canalys data showed that Apple Watch 3 accounts for nearly half of all shipments for 2017.
Apple Watch Series 3 was launched in September 2017. In India, Apple Watch Series 3 with Cellular and GPS is priced starting at Rs 39,080, while the Nike+ variant has been priced starting Rs 39,130. Apple Watch Series 3 GPS version is priced at Rs 32,380 for the 38mm version, while the 42mm size version will cost Rs 34,410. Apple Watch with Nike Sport band is available at a similar starting price. Apple Watch Series one is currently priced at Rs 23,950 in India.
“Apple faces a growing threat from competitors, which have started to pass the million quarterly shipments mark,” said Canalys Research Analyst Vincent Thielke. “Vendors are trying to differentiate their products with advanced heart-rate metrics, smart coaching and mapping, and consumers now have a much wider range of smartwatches to choose from than they did a year ago. Amid further competition from Samsung and Google, rumored to be launching Galaxy and Pixel watches respectively, Apple needs to work out how to drive refreshes in markets such as the US, where its penetration into the existing iPhone installed base has started to level off,” Thielke added.