Apple Watch Took Half of All Smartwatch Sales for Q4 2016, Claims Analyst
Another report coming from different analysts shows that Apple not just enjoyed a great Q4 2016 financial run with its iPhones, but with its Apple Watch lineup as well. Despite the high asking price of the company’s wearables, their key selling points definitely have to do with the integrated software ecosystem that the company has made and improved overtime.
Apple Watch Accounted for Nearly 80 Percent of the Smartwatch Revenue for Q4 2016
A completely different report compiled by Canalys states the following about the sales performance of Apple Watch:
“Apple set a new quarterly shipment record in Q4 2016, contributing to total smartwatch shipments exceeding 9 million units. This global market figure was largely driven by Apple’s 6 million shipments, representing year-on-year growth of 12%. It was the Apple Watch’s best quarter despite being significantly handicapped by supply constraints, even though Apple simultaneously expanded its supply chain. According to Canalys estimates, the Apple Watch generated more than US$2.6 billion in revenue for Apple in Q4 2016, making up nearly 80% of total smartwatch revenue.”
Analyst Jason Low claims that the reason why Apple was able to sell more devices was not only due to hardware and yearly software improvements, but improved pricing variables which attracted a larger crowd to the product:
“Apart from the hardware and software improvements of the new models, Apple succeeded mainly due to its streamlined marketing and re-aligned pricing, which helped it address a wider audience. The Series 1’s lower entry price and Apple’s more focused fitness messaging made its Watch both more attainable and more relevant.”
Canalys also estimates that Apple shipped 11.9 million smartwatches during the entire 2016 period, resulting in a global market share of 50 percent.
A different report suggests that the smartwatch industry was up 1 percent year-over-year to 8.2 million in 2016. The reason for that growth is thanks to the impressive Apple Watch’s success during the holiday quarter. Apple also managed to surpass Samsung for the ‘Q4 2016 top smartphone vendor’ achievement, even though the Korean tech giant managed to sell more phones than Apple in the entire year.
Apple seems to have no competitor; Samsung reported just 800,000 smartwatch shipments during the holiday quarter, down 38 percent year-over-year from 1.3 million in Q4 of 2015, showing the dominance of the California-based giant.
We can only assume the improvements that the next Apple Watch is going to be incorporated with.