Apple Watch Is Growing in a Shrinking Market
by Horace Dediu
Global smartwatch shipments fell 4% year over year in the second quarter. However, Apple’s shipments climbed 14%, the fastest growth among the five largest brands. Its global market share increased to 20.1% from 17%
Source: Benzinga
NB: It's not only phones and Macs and tablets. The watch apparently is growing in a shrinking market. This might be more than the memory shortage.
The flaw is to think that there is a market only for those who already own "smartwatches" and the options are either to encourage upgrades or switchers from other watches. I doubt an Android watch user will switch to Apple Watch because they like the watch only.
Apple says frequently that "half of buyers of Watch are new to the product" or something to this effect. This implies either switching but more likely buying their first smartwatch.
There is so much non-consumption to conquer. The fact that fewer Android watches are sold may be indicative of fatigue with the platform or adoption of screenless wearable health monitors.
4 comments
deemery ·
For a lot of people, a watch is a fashion/status statement. Android watches have --no-- brand value in that regard.
FredHS ·
Apple Watch succeeds because it's the only viable platform 'watch'.
The rest is so fragmented from simple health trackers or emergency callers sold to elderly, to the other OSes - Google's Wear, Huawei's HarmonyOS, Fitbit OS, ZeppOS, Garmin OS, and others.
Apple boldly launched Apple Watch as a platform. It was a reach - not water-proof, not great battery life, etc. because they crammed a viable chip and OS needed for a true platform.
FredHS ·
Oh, I forgot, the first Apple Watch could not make phone calls.
AAPL ·
Fred, I was able to answer and make phone calls with my original Apple Watch (series 0). It didn't have cellular networking but it did this by being paired with my iphone which had to be nearby (usually in my pocket or on my desk).