Call (NASDAQ: AAPL) has dominated the wearables market in recent years, thanks in large part to the popularity of the Apple Watch. Strong demand for AirPods also helps, as the company is also the leader in hearables. The smartwatch market has been able to grow so far this year despite the economic devastation that the COVID-19 pandemic has inflicted around the world.
The Mac maker has expanded and represented its market share over the past year heal of all revenue for smartwatch in the first two quarters of 2020.
Image Source: Apple.
Apple Watch is the most popular smartwatch in the world
Counterpoint Research estimates that Apple’s share of smartwatch revenue in the first half of 2020 was 51.4%, up from 43.2% in the first half of 2019. The No. 2 vendor was Garmin (NASDAQ: GRMN) with 9.4% share in that time frame, followed by China’s Huawei at 8.3%. Overall unit volumes were roughly flat at around 42 million as consumers tried to continue to exercise during the coronavirus crisis, but the 20% growth in total smartwatch revenue indicates an increase in average sales prices (ASPs) .
“The space for smartwatch remains a popular segment of consumer devices, compared to the decline seen in demand for smartphones and many other segments in the first six months of 2020 due to the destruction caused by COVID-19,” said Counterpoint senior analyst Sujeong Lim. “Nearly 42 million smartwatches were shipped in the first half of 2020, as wearables continue to see greater demand, making consumers more health-conscious.”
The Apple Watch Series 5 has the most popular smartwatch model to date in 2020, followed by the older Apple Watch Series 3 that the Cupertino tech giant continues to sell at a lower price of $ 199. Huawei’s Watch GT2 was the third best-selling gadget, with Samsung’s Galaxy Watch Active 2 ranking no. 4 in popularity.
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⌚️Global smartwatch revenue up 20% YoY despite shipping growth remained flat in 1H 2020
⌚️ @Appel dominated taking half of the global revenue for smartwatch
⌚️ @Garmin jumped to 2nd place in revenue w / demand for Forerunner series uphttps: //t.co/oe3rExYSrM pic.twitter.com/RnBOgZvF5c
– Neil Shah (@neiltwitz) August 20, 2020
Fitbit (NYSE: FIT) did not go too well, grabbing only 2.4% of the revenue for smartwatch. The portable tech specialist, who Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google is trying to cope with stiff competition from Apple and Garmin, according to Counterpoint’s Neil Shah. The market researcher is of the opinion that Fitbit needs to do more to ignite the demand during the holiday season. ‘Fitbit is expected to have a Versa 3 in the pipeline, as well as a new smartwatch model called the Sense.
Earlier this month, Fitbit reported a drop of nearly 30% in sold devices (including both smartwatches and basic fitness trackers) in its fiscal second quarter. As far as Google is concerned, Counterpoint estimates that the company’s WearOS platform represented about 10% of the market.
European anti-trust regulators recently launched an anti-trust investigation into Google’s proposed acquisition of Fitbit from Google over concerns that the search giant will use sensitive health data for advertising purposes. However, both companies remain optimistic about closing the deal before the end of the year.
