With 63% share, Apple Watch pushes global smartwatch shipments past Swiss watches for first time

AppleInsider · February 19, 2016 2:36AM

Fresh statistics from Strategy Analytics show smartwatch shipments surpassed those of traditional Swiss-made timepieces for the first time ever in the last quarter of 2015, with Apple Watch leading the charge.

According to the latest estimates, smartwatch shipments rose to 8.1 million units worldwide in quarter four, growing a massive 316 percent from the same time in 2014. By comparison, Swiss watch shipments peaked at 7.9 million units over the same period.

"Smartwatches are growing rapidly in North America, Western Europe and Asia," said Strategy Analytics Director Cliff Raskind. "Apple Watch captured an impressive 63 percent share of the global smartwatch market in Q4 2015, followed by Samsung with 16 percent. Apple and Samsung together account for a commanding 8 in 10 of all smartwatches shipped worldwide."

Switzerland, long the standard against which all other watch sales are measured, saw its share of the market decline 5 percent year over year. The analytics firm sees Swiss watch sales slowing down as major players like Swatch search for new areas of growth. Neil Mawston, Executive Director at Strategy Analytics, blames the slowdown in part on a rising smartwatch tide.

"The Swiss watch industry has been sticking its head in the sand and hoping smartwatches will go away," Mawston said. "Swiss brands, like TAG Heuer, accounted for a tiny 1 percent of all smartwatches shipped globally during Q4 2015, and they are long way behind Apple, Samsung and other leaders in the high-growth smartwatch category."

The TAG Heuer model Mawston refers to debuted last November as the Connected, a premium Android Wear device priced at $1,500. Interestingly, TAG is using Connected to reroute customers back to its traditional lineup. The firm said buyers can swap out their smartwatch for a mechanical version after two years -- and with an additional $1,500 upgrade fee.

Today's estimates are in line with statistics reported by market research firm Jupiter Research last month, which said Apple Watch accounted for more than half of all smartwatches shipped in 2015. Apple does not report official Watch sales numbers.

More recently, a second-generation Apple Watch is said to be in the works and could go into mass production in the second quarter. The company is expected to make Watch-related announcements at an as yet unannounced, but widely rumored, press event in March.

robin huber · February 19, 2016 3:20AM

Herr Swiss Watch industry, permit me to introduce you to Mr. Music Industry who will explain why a policy of denial is not the best strategy.

LoneStar88 · February 19, 2016 3:26AM

I had an auto-winding Seiko diver's watch for about 7 years until the late '70s when I got a cheap LCD digital for about $15. The advantage beyond cheap was that it was accurate. I had calculator watches in the '80s, but they were hard to use. When phones started displaying the time I stopped wearing watches.

I don't care a about status symbol watches. I've only wanted to have access to accurate time.

My Apple iPhones since the first model have been great for telling time.

But my Apple Watch shows me the time without having to pull my phone out of my pocket.

I also love all the notifications.

I'm obviously not alone.

Traditional watches will be around for a long while yet, but they will become increasingly obsolete.

There's nothing wrong with that. The Swiss just need to phase over into making other stuff.

mac_128 · February 19, 2016 3:35AM

LoneStar88 said:

But my Apple Watch shows me the time without having to pull my phone out of my pocket.

You know what's funny about this observation? One thing I remember when watches were ubiquitous was that if I needed to see the time, and I wasn't wearing a watch and there wasn't a clock in sight, I could just look at somebody else's arm. Can't do that anymore even if they are wearing the Watch.

lkrupp · February 19, 2016 4:18AM

So once again the naysayers have to eat their words. They laughed at the iPod, they snickered at the iPhone, they made feminine napkin jokes about the iPad, and they guffawed at the Watch. What do they not get about Apple? These stupid, ignorant, arrogant Swiss watchmakers dismissed Apple’s entry into their market territory and now they have bloody noses from a kick in their teeth. They probably feel like Ronda Rousey did after Holly Holm knocked her unconscious with a vicious kick to the head. Screw all you AI trolls always predicting doom and gloom. You are nothing.

jungmark · February 19, 2016 4:20AM

But the watch is failure. I read that on the internet so it must be true.

cali · February 19, 2016 8:41AM

Weren't these guys like not worried at all about Apple Watch? Didn't they dismiss it?
http://appleinsider.com/articles/15/05/08/as-swiss-watchmakers-dismiss-apple-watch-threat-swiss-national-bank-increased-its-apple-holdings-by-60

mac_128 said:

LoneStar88 said:

But my Apple Watch shows me the time without having to pull my phone out of my pocket.

You know what's funny about this observation? One thing I remember when watches were ubiquitous was that if I needed to see the time, and I wasn't wearing a watch and there wasn't a clock in sight, I could just look at somebody else's arm. Can't do that anymore even if they are wearing the Watch.

Due to battery restrictions. I always thought it would be nice to keep those beautiful displays on all the time.

radarthekat · February 19, 2016 10:44AM

The smartphone has replaced many stand-alone appliances (a word I use to describe any item that provides functionality, like a camera, an alarm clock, a music player, a calculator, etc). And in replacing these many appliances, the smartphone has become ubiquitous and essential.

But there are some appliances that it is less suitable to replace versus a wrist mounted wearable. Credit cards and other payment cards, electronic tickets, access cards and fobs to shared work spaces, and eventually keys to personal spaces, like a car and later, homes. Remote controllers for thermostats, TV, stereo, lights. All these appliances are better replaced by a device that is more ready at hand than a smartphone, which spends much of its existence in the user's pocket, or set somewhere, such as on its charger. For the appliances listed here, and perhaps others, a smartwatch is ideal. It's here that traditional mechanical watches, no matter how well crafted and jeweled, will lose out to the change in paradigm that the modern smartwatch represents.

Some of these appliances can be built into the cases or bands of traditional watches, or into luxury mechanical/smart watch hybrids. But there will be ecosystems, with interfaces and APIs built out by Apple and other smartwatch vendors that will be needed to interface any watch to the external Internet of things. Apple will likely have the most well designed ecosystem, with the best security and the best tools for developers and partners. Will the world's ultra luxury watch makers offer their customers $100k+ watches that utilize an OS and ecosystem that's known to be less than ideal? Less secure? Less exclusive, than Apple's? Only if they are not offered a partnership with Apple. So Apple sits in the position of power as the world shifts away from the traditional paradigm of luxury watch as status symbol and fashion to a paradigm of smartwatch as an extension of person and controller of one's physical environment.

wonkothesane · February 19, 2016 11:04AM

One might consider this as a paradigm shift with the Swiss industry pulling a blackberry.
OTOH I know no one who uses a mechanical watch to tell time, date, moon phase, or whatever. They wear it mostly as an accessory. Insofar this is like comparing sales of suits vs gym clothing, only because both happen to be worn on the same part of your body

cnocbui · February 19, 2016 11:27AM

The Watch will most likely have the same sales characteristics as the iPad. Huge initial sales and then they will decline.

williamlondon · February 19, 2016 1:22PM

mac_128 said:

LoneStar88 said:

But my Apple Watch shows me the time without having to pull my phone out of my pocket.

You know what's funny about this observation? One thing I remember when watches were ubiquitous was that if I needed to see the time, and I wasn't wearing a watch and there wasn't a clock in sight, I could just look at somebody else's arm. Can't do that anymore even if they are wearing the Watch.

That's funny, this parrots my experience which is that the watch on my wrist (currently traditional) is more convenient than the phone in your pocket for telling the time.

cnocbui said:
The Watch will most likely have the same sales characteristics as the iPad. Huge initial sales and then they will decline.

As always you never let an opportunity pass to take a worm out of your pocket and put it in an Apple so you can then announce your "insightful discovery." [rolls eyes]

franklinjackcon · February 19, 2016 1:25PM

I would guess that the slowdown in China had a bigger impact than Apple and that already started a couple of years ago. Smart watches give the Swiss a new product to sell to a new audience but it doesn't necessarily mean their old market will evaporate as a result.

cnocbui · February 19, 2016 2:44PM

williamlondon said:

mac_128 said:

You know what's funny about this observation? One thing I remember when watches were ubiquitous was that if I needed to see the time, and I wasn't wearing a watch and there wasn't a clock in sight, I could just look at somebody else's arm. Can't do that anymore even if they are wearing the Watch.

That's funny, this parrots my experience which is that the watch on my wrist (currently traditional) is more convenient than the phone in your pocket for telling the time.
As always you never let an opportunity pass to take a worm out of your pocket and put it in an Apple so you can then announce your "insightful discovery." [rolls eyes]

In the past 23 years I have bought 2 watches. They are both fully functional and I doubt I will buy another unless my main wear dies. If you think you can make out a logical case for people replacing watches on the same schedule they do phones, then let's hear your arguments. Do you have any?

SpamSandwich · February 19, 2016 2:46PM

LoneStar88 said:

I had an auto-winding Seiko diver's watch for about 7 years until the late '70s when I got a cheap LCD digital for about $15. The advantage beyond cheap was that it was accurate. I had calculator watches in the '80s, but they were hard to use. When phones started displaying the time I stopped wearing watches.

I don't care a about status symbol watches. I've only wanted to have access to accurate time.

My Apple iPhones since the first model have been great for telling time.

But my Apple Watch shows me the time without having to pull my phone out of my pocket.

I also love all the notifications.

I'm obviously not alone.

Traditional watches will be around for a long while yet, but they will become increasingly obsolete.

There's nothing wrong with that. The Swiss just need to phase over into making other stuff.

Switzerland would be a great secure location for Apple to relocate to since the US government has become so threatened by the company's very existence. Do it, Tim. The stock would probably instantly quadruple in value.

williamlondon · February 19, 2016 2:54PM

cnocbui said:

williamlondon said:

As always you never let an opportunity pass to take a worm out of your pocket and put it in an Apple so you can then announce your "insightful discovery." [rolls eyes]

In the past 23 years I have bought 2 watches. They are both fully functional and I doubt I will buy another unless my main wear dies. If you think you can make out a logical case for people replacing watches on the same schedule they do phones, then let's hear your arguments. Do you have any?

Surely, you jest if you think I'm going to fall for your juvenile attempt to draw me into an argument that has nothing whatsoever to do with my comment. Sigh.

tundraboy · February 19, 2016 3:03PM

cnocbui said:

The Watch will most likely have the same sales characteristics as the iPad. Huge initial sales and then they will decline.

I'm not that sure. You don't carry the iPad as intimately as you would a smartphone or now, a smartwatch. iPad's are viewed from a very utilitarian perspective, so as long as they're working well enough, they will not be replaced. Smartphones and smartwatches though, people invest their identity in it because they are seen in possession of and using it. So they will be updated more often, and that's what we see with phones. My wife has 5 watches, all get used. Most people who own watches own more than one. I'd say as long as Apple keeps updating the tech and the designs, a lot of people will keep buying the newest Apple Watch.

tundraboy · February 19, 2016 3:07PM

Fearless forecast: After the coming carnage in the mech watch industry, Apple will pick up one of the prestige mech watchmakers for a song and sell very high end hybrid mechanical/PhoneOS models under the prestige watchmaker's brandname. They already have the person who knows exactly how to market the line.

robin huber · February 19, 2016 4:03PM

lkrupp said:

bloody noses from a kick in their teeth.

Or maybe bloody teeth from a kick in their noses?

robin huber · February 19, 2016 4:13PM

Sometimes a watch is just a watch. Sometimes it isn't. Mechanical watches were augmented by digital ones, which eliminated the cheap mechanical but enhanced the appeal of high-end ones. Apple is adding the wearable computer to the mix. An eventual lower price point will marginalize the old cheap digital ones. Time marches on.

stargazerct · February 19, 2016 5:22PM

Wait...isn't Apple doomed? /s

studiomusic · February 19, 2016 5:50PM

stargazerct said:

Wait...isn't Apple doomed? /s

Of course they are. Their continual string of smash successes and monopoly of profits in every category they are in don't change the fact that they should shut it all down, sell all the assets, and give the money back to the shareholders. /s

With 63% share, Apple Watch pushes global smartwatch shipments past Swiss watches for first time

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