Apple Watch leads wearable device market with estimated 3.8M unit shipments in first quart...

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in Apple Watch
The Apple Watch is continuing to dominate the wearable device market, analytics firm Canalys claims, marginally beating Xiaomi in terms of wearable band shipments in the first quarter of 2018 at a time when shipments in the market grew by 35 percent compared to the same period last year.

Apple Watch Series 3


Apple shipped 3.8 million Apple Watches during the first quarter of 2018, according to Canalys' estimates, slightly ahead of the 3.7 million units shipped by rival Xiaomi. Each company is said to occupy 18 percent of wearable band shipments in the quarter, which has grown to 20.5 million units overall.

While the two companies have relatively similar shipment estimates in the period, the revenue each acquired differs greatly. Apple sells just the Apple Watch in this space, while it is believed the cheaper Mi Bands account for more than 90 percent of Xiaomi's shipments, indicating Apple would receive comparably higher revenue overall due to its different product mix.

Fitbit, Garmin, and Huawei round out the top five list, with 11 percent, 7 percent, and 6 percent respectively. According to Canalys, these three companies have a mixed portfolio of wearables, though exact proportions were not defined.

Wearables Shipment Chart Canalys


According to Canalys' data, approximately 43 percent of wearable band shipments are made up of smartwatches, with 57 percent consisting of basic bands. The comparatively higher prices of smartwatches means the devices earn a higher share of the wearable band revenue, with smartwatches pulling in 80 percent while basic bands draw just a 20-percent share.

The shipments for the Apple Watch are down from the fourth quarter, with holiday sales pushing shipments up to an estimated 8 million, higher than the level of Swiss watch exports. This seasonal change is to be expected, as it also applies to the majority of other Apple products over the same period.

In the third quarter of 2017, the Apple Watch shipped an estimated 3.9 million units, including 800,000 of the Series 3 with LTE model.

"Key to Apple's success with its latest Apple Watch Series 3 is the number of LTE-equipped watches it has been able to push into the hands of consumers," suggests Canalys senior analyst Jason Low. "Operators welcome the additional revenue from device sales and the added subscription revenue for data on the Apple Watch, and the list of operators that sell the LTE Apple Watch worldwide is increasing each month."

Apple reportedly represents 59 percent of the cellular-enabled smartwatch market, Low adds, noting "the lack of a similar product in the Android ecosystem is glaring." Low also suggests that, if Google decides to proceed with a rumored Pixel Watch, "it would jump-start much needed competition" in the wearables market.

It is believed the Apple Watch Series 3 helped improve Verizon's first quarter financials, with the net addition of 260,000 subscribers in the quarter attributed to wearable devices. The general lack of cellular-ready smartwatches, as well as belief the Apple Watch is the most successful product of its kind, offers the suggestion that the Apple Watch contributed significantly to the carrier's larger subscriber base.

During Apple's quarterly results in early May, it was revealed the company's wearables division, which consists of Beats headphones and AirPods alongside the Apple Watch, has grown in revenue by nearly 50 percent year-on-year. During the analyst call, Apple CEO Tim Cook called its wearables business the equivalent size of a Fortune 300 company.

Cook also mentioned the Apple Watch had set a new March quarter record, but declined to provide details. "Millions of customers are using Apple Watch to stay active, healthy, and connected, and they have made it the top-selling watch in the world," declared the CEO.
albegarc

Comments

  • Reply 1 of 16
    volcanvolcan Posts: 1,789member
    I am very dissatisfied with my original SS 48mm. The screen became detached just hanging by the ribbon cable through no fault of my own. I had it repaired at the Apple Store. It took about 10 days. Fortunately I had Apple Care +. Unfortunately it happened again but Apple Care had expired. Never buying another. 
  • Reply 2 of 16
    FolioFolio Posts: 600member
    I waited for cellular version before buying and still amazed after nearly six months. It’s transformative. I hope Vulcan you eventually give newer version a try, and not let an apparent lemon ruin rest of your fitness experience and filtering of phone calls texts. Friend of mine who owns Apple stock knew nothing at all about the watch and was blown away by a few demos. Apple has a long runway here. Very exciting to be dominant leader already.
    claire1albegarcGeorgeBMacwatto_cobra
  • Reply 3 of 16
    claire1claire1 Posts: 510unconfirmed, member
    Apple should exploit their lead and absolutely dominate in functionality and hire more companies for bands. I was shocked that Gucci, Louis Vuitton and other big brands don't offer bands.

    I think a big mistake was pulling Watches from jewelry stores and axing the Edition. Make all the excuses you want but this market secured Apple into the ultra premium and don't be surprised if wealthy people start wearing Rolex watches instead, causing Apple to lose $10,000 a Watch.
    watto_cobra
  • Reply 4 of 16
    maestro64maestro64 Posts: 4,643member
    volcan said:
    I am very dissatisfied with my original SS 48mm. The screen became detached just hanging by the ribbon cable through no fault of my own. I had it repaired at the Apple Store. It took about 10 days. Fortunately I had Apple Care +. Unfortunately it happened again but Apple Care had expired. Never buying another. 
    Too bad for your bad luck, I have a SS 48mm, pre-order when it was announce and have worn it every single days since, I have done things in which I should not have, like worked on my cars and it is still running and not a single mark on it. Part of the reason I got the SS version was for the sapphire crystal since i an rough on watches.
    watto_cobra
  • Reply 5 of 16
    maestro64maestro64 Posts: 4,643member
    here we go again with made up numbers from people who have not idea what the real numbers are.
  • Reply 6 of 16
    claire1claire1 Posts: 510unconfirmed, member
    maestro64 said:
    here we go again with made up numbers from people who have not idea what the real numbers are.
    Anecdotal but, I hardly ever see "others" in the wild anymore. Android wear is dead.
    watto_cobra
  • Reply 7 of 16
    FolioFolio Posts: 600member
    When new sleeker form factor of watch debuts, maybe this fall, then agree Claire1 that ultra premium models make sense to try again. Doubt this figures in any analyst models, but one luxury watch could have at least five times the profit of highest iPhone. They’ll last longer too. Look how even Bentley has rugged model of car. Apple can be at height of form function and fashion in watch, at least in my dreams.
    claire1watto_cobra
  • Reply 8 of 16
    claire1 said:
    maestro64 said:
    here we go again with made up numbers from people who have not idea what the real numbers are.
    Anecdotal but, I hardly ever see "others" in the wild anymore. Android wear is dead.
    Not sure which country you live in but outside the US, there are plenty of "others", especially in Asia or for kids that are fine with a knock off brand. Also there are running watches from TomTom, Suunto, Polar, etc that you wouldn't see on someone unless they are running. I'd call those GPS watches that happen to have bluetooth but they probably count in this study.
  • Reply 9 of 16
    If Apple could only get the health insurance companies to boost sales by them offering LTE AppleWatches to their subscribers. That could go a long way to helping Apple move a lot of AppleWatches. I wonder if Apple is actively pursuing insurance companies. Tim Cook isn't much of a go-getter. Apple always expects someone to simply come to them.
    claire1
  • Reply 10 of 16
    KuyangkohKuyangkoh Posts: 345member
    I thought Apple Watch is a flop.....where’s the analysts opinion?.
    watto_cobra
  • Reply 11 of 16
    dewmedewme Posts: 2,125member
    I’ve been delighted with my original Apple Watch. It's extremely comfortable and provides just enough functionality to make it indispensable for everyday use. I would upgrade to the latest LTE version if doing so didn’t require making an account/billing change with AT&T. For some reason any changes to my AT&T/DirectTV billing typically require at least 4-5 trips to the AT&T store and 3 billing cycles to get what ends up being only partially resolved. Really wish Apple could find a way to bypass the AT&T black hole with the LTE Apple Watch.
    edited May 2018 watto_cobra
  • Reply 12 of 16
    lukeilukei Posts: 332member
    If Apple could only get the health insurance companies to boost sales by them offering LTE AppleWatches to their subscribers. That could go a long way to helping Apple move a lot of AppleWatches. I wonder if Apple is actively pursuing insurance companies. Tim Cook isn't much of a go-getter. Apple always expects someone to simply come to them.
    This is already happening in the UK 
  • Reply 13 of 16
    GeorgeBMacGeorgeBMac Posts: 4,961member
    I have one complaint about the Apple Watch:   My carrier doesn't support the LTE version so I'm stuck with the Series 1.
    ... Oh wait!  That's not Apple's fault...

    I guess I love it.
    watto_cobra
  • Reply 14 of 16
    asciiascii Posts: 5,941member
    I have one complaint about the Apple Watch:   My carrier doesn't support the LTE version so I'm stuck with the Series 1.
    ... Oh wait!  That's not Apple's fault...

    I guess I love it.
    Apple should talk to the carriers though, the current policies of some are a barrier to Apple Watch adoption.

    My carrier supports the "multiple devices with one phone number" technology needed by the Apple Watch but only if you have a post-paid plan, if you have a pre-paid one they don't offer it (which is purely a choice of theirs to differentiate their products, not a technology limitation).
    watto_cobra
  • Reply 15 of 16
    claire1claire1 Posts: 510unconfirmed, member
    Folio said:
    When new sleeker form factor of watch debuts, maybe this fall, then agree Claire1 that ultra premium models make sense to try again. Doubt this figures in any analyst models, but one luxury watch could have at least five times the profit of highest iPhone. They’ll last longer too. Look how even Bentley has rugged model of car. Apple can be at height of form function and fashion in watch, at least in my dreams.
    And only Apple can sell ultra premium $10,000 Watches. No one wants to buy a knockoff or Moto for more than $199.

    claire1 said:
    maestro64 said:
    here we go again with made up numbers from people who have not idea what the real numbers are.
    Anecdotal but, I hardly ever see "others" in the wild anymore. Android wear is dead.
    Not sure which country you live in but outside the US, there are plenty of "others", especially in Asia or for kids that are fine with a knock off brand. Also there are running watches from TomTom, Suunto, Polar, etc that you wouldn't see on someone unless they are running. I'd call those GPS watches that happen to have bluetooth but they probably count in this study.

    U.S. On a typical day you'll see about 20 Apple Watches, 5 Fitbits and maybe 3-0 android watches. Depends on where you go and if you're paying attention. I saw a homeless man wearing an Apple Watch until I walked up to him and noticed it was a cheap knockoff, maybe $2.

    If Apple could only get the health insurance companies to boost sales by them offering LTE AppleWatches to their subscribers. That could go a long way to helping Apple move a lot of AppleWatches. I wonder if Apple is actively pursuing insurance companies. Tim Cook isn't much of a go-getter. Apple always expects someone to simply come to them.

    Great idea especially if they can get glucose monitoring along with other features. Apple Watch has already saved lives.

    watto_cobra
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