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Smartwatch sales continue to sizzle with the Apple Watch comfortably on top

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Smartwatch sales continue to sizzle with the Apple Watch comfortably on top
According to data released by Strategy Analytics, smartwatches continue to show strong growth. During the second quarter (which encompasses the period from April through June) year-over-year growth in global smartphone shipments rose 47% to 18 million units. That is the best showing for the industry since 2018 bringing the growth rate back to levels last seen before the pandemic.

Steven Waltzer, Senior Analyst at Strategy Analytics says that the growth in shipments was led by online sales of devices that are used by individuals to monitor certain healthcare-related metrics.

Strategy Analytics Executive Director Neil Mawston states that "The smartwatch market is on fire. The smartwatch outlook for the rest of the year and into the Q4 holiday season is highly promising. Samsung’s new Galaxy Watch 4 is packed with compelling apps that track your holistic health better than ever before."

Mawston adds that "Chinese brands, like Xiaomi and OPPO, are piling in with lower-cost 4G smartwatches optimized for mobile operators. Meanwhile, Apple Watch Series 7 is eagerly awaited, slated for September or October, and rumored to contain a larger display that will enhance further the app experience."

Meanwhile, the Apple Watch was still responsible for more than half of all smartwatch shipments made during the second quarter (52.5% vs. 52.8% last year). Apple shipped 9.5 million units during Q2, 3 million more than the number of timepieces it shipped during the 2020 second quarter producing a 46% year-over-year growth rate for the company during the three months.

Samsung saw its watch shipments rise 54% on an annual basis to 2 million units. As a result, the South Korean manufacturer ended the quarter with an 11% slice of the smartwatch pie up from the prior year's 10.6%. Garmin finished in third for the quarter having shipped 1.5 million units. That was up 25% from the 1.2 million devices it delivered during last year's second quarter but it was not strong enough to prevent a year-over-year decline in market share from 9.8% to 8.3%.

Recently, Samsung released the new Galaxy Watch 4 and Galaxy Watch 4 Classic. Both run on Android Wear as Sammy dropped Tizen for the new timepieces. Apple is expected to unveil the Apple Watch Series 7 within weeks. We expect to see a new look for the device with larger screens for both the 41mm and 45mm units (up from last year's 40mm and 44mm), new watch faces that will make use of the extra real estate including a revamped Infograph Modular face, and a faster S7 processor.

Other changes include smaller bezels on the display, improved wireless connectivity, enhanced ultra wideband capabilities, and a new flat-edge design reminiscent of the iPhone 12 line.

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