Apple Sets A New Record in Quarterly Smartwatch Shipments Q4 2016

Must Read

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the...

Search Engine Optimization In Digital Era: Look Beyond Traffic

Search engine optimization, aka SEO, plays a vital role in today's online world, especially if it's about...

After Banning Apps, India To Clamp Down On Startup Investments From China

The recent border conflict between India and China has led to the Indian Government to actively take...

Apple Inc. (NASDAQ:AAPL) has achieved another milestone. The iPhone maker accounted 67% of smartwatch shipments in Q4 2016 and grossed 80% of the total smartwatch revenue, according to the latest data released by research firm Canalys. With 12% year over year growth, the smartwatch shipments in Q4 2016 exceeded 9 million units. The growth was largely driven by Apple watch as nearly 6 million units of these smartwatches were shipped by Apple.

The achievement for Apple becomes more valuable in the wake of the fact that Apple Watch Series 2 was hit by supply constraints. This resulted in a three weeks delay in shipments and Apple was forced to expand its supply chain to keep the shipments smooth.

Apple generated $2.6 billion of revenue from the record 6 million units of Apple Watch that were shipped in Q4 2016.

Advertisements

“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,” said Analyst Jason Low – Canalys.

The report also estimated that, in 2016, Apple shipped nearly 11.9 million units of smartwatch, capturing 49% of the global smartwatch shipments.

The power packed performance of Apple in smartwatch segment was largely influenced by the lower price of Apple Watch Series 1 and enhancement in fitness features. Apple’s strategy to reduce the price of Apple Watch Series 1 after the launch of Apple Watch Series 2 and more focused fitness messaging made Apple smartwatch more adorable.

Smartwatch Shipments in 2016: Fitbit Beats Samsung

The jaw-dropping revenue share of Apple in smartwatch segment was followed by Fitbit which kept Samsung hooked with the third position. With 17% share of smartwatch shipments in 2016, Fitbit maintained its lead over Samsung.

Industry analysts, however, feels that the year 2017 is going to be challenging for both Apple and Fitbit as Samsung will be pushing Gear S3 Classic and Frontier. The Korean device maker will be all out to grab a sizable share of smartwatch shipments in 2017, especially after having a long disappointing year due to various debacles. Besides, the shipment volume of Android Wear is also expected to soar after the delayed launch of Android Wear 2.0.

Apple’s Record Performance Have Challenges As Well

Revenue share of smartwatch industry is not the only feat by Apple in Q4 2016. In smartphone segment as well Apple made 92% of total smartphone industry revenue by dethroning Samsung after five years. Though the shipment volumes of smartphones of Apple and Samsung were quite close, Apple took the lion’s share by leveraging on the margins on each iPhone it sold in Q4 2016.

Advertisements

But all if not well for Apple as the company is losing is grounds to Fitness bands. Despite the fact that Apple smartwatch users are found to be more satisfied than any other smartwatch maker, fitness band companies like Xiaomi is may soon make Apple run for its money. The constant improvement and enhancement introduced by Xiaomi in Mi Band 2s is lucrative users like never before. It is clearly visible by the performance of Xiaomi in Q4 2016, as the company recorded unprecedented 104% growth in its fitness band shipments, to 5.5 million units, in Q4 2016.

Also, as against 12% growth in smartwatch shipments in Q4 2016, Fitness Band shipments grew 24% during the same period.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Instagram Reels In India: A Possible Death For The Indian Alternatives Of TikTok?

After the Indian Government banned the popular short-form video app TikTok along with 58 other Chinese-origin apps,...

How People Set Their Passwords: 123456 Is The Most Common One [STUDY]

Do you know why hackers quickly gain access to your system or online accounts?  It's because the passwords are...

Will The Ban On TikTok Be Revoked?

The ban on TikTok is the talk of the town. All hell broke loose for Tiktok when the popular short-form video platform...

Global 5G Chipset Market: $22.41 Billion By 2026, Driven by 5G Smartphones

As the world has started shifting from 4G to 5G era, the global 5G chipset market has started attracting the eyeballs of...

Launch Of JioMeet Will Make Zoom To Be The 60th Chinese App To Get Banned In India?

Today as soon as the launch of JioMeet was formally announced by Mukesh Ambani, the frontman of Reliance Industries, people quickly found...

Intel Invest in Jio Platforms: A Chance For Redemption In The Smartphone Market?

If you thought Mukesh Ambani was finally going to stop the stake selling spree in Jio Platforms after RIL was recently announced...

In-Depth: Dprime

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This