Apple Watch generated almost 80% of total smartwatch revenue in Q4
Apple reported that during the fiscal Q1 earnings call the Apple Watch hit record numbers for units and revenue in the noteworthy holiday span. New reports puts estimates of Apple Watch sales at about 6 million units and $2.6 billion in revenue. It implies that the firm took about 80% of total revenue for the smartwatch market last quarter. It would denote around 12% year-over-year growth for the device sales as well:
- Fariha Khan
- February 8, 2017
Apple set a new quarterly shipment record in Q4 2016, contributing to total smartwatch shipments exceeding 9 million units. This global market figure was largely driven by Apple’s 6 million shipments, representing year-on-year growth of 12%. It was the Apple Watch’s best quarter despite being significantly handicapped by supply constraints, even though Apple simultaneously expanded its supply chain. According to Canalys estimates, the Apple Watch generated more than US$2.6 billion in revenue for Apple in Q4 2016, making up nearly 80% of total smartwatch revenue.
Apple Watch’s lesser entry-level price point with Series 1 and a mounted focus on fitness features helped to drive demand last year. For the entire 2016, reports estimate that Apple had about 50% global smartwatch market share with about almost 11.9 million units shipped. The company is followed by Fitbit with 17% of the market in 2016, Samsung with 15%, and the Others category with the rest of 19%.
But Apple wasn’t the sole firm to have record numbers for wearable sales in the quarter. Companies such as Xiaomi achieved a record quarter for its Mi Band wearable as well with 5.5 million units shipped, while it is taken as a fundamental band, not a complete smartwatch. Apple Watch will have to struggle with new Android Wear wearables in the future as the delayed Android Wear 2.0 launch gets available on new products finally.
According to CEO Tim Cook, during the firm’s Q1 earnings call at the end of January demand for Apple Watch during the quarter was so high that the firm was not able come up with sufficient, cueing that its record numbers could have been higher than that only if it wasn’t undergoing restraints regarding demand and supply.