Daily Management Review

Apple Watch sales decreased by 55%


07/22/2016


For the first time in history, the market of smartwatches fell in the II quarter 2016 yoy due to a sharp drop in sales of Apple Watch, according to preliminary data gathered by International Data Corporation research company (IDC).



Raysonho @ Open Grid Scheduler / Grid Engine
Raysonho @ Open Grid Scheduler / Grid Engine
Sales of smartwatches in April-June decreased by 32% to 3.5 million units. At the same time, Apple was only one among the five largest producers who recorded a decline in sales. Apple Watch deliveries fell by 55% to 1.6 million units. Nevertheless, the company has maintained its leadership in the market, although its share fell from 72% to 47%. 

"Consumers in no hurry to buy smartwatches, they are waiting for new models and updates, - Jitesh Ubrani, said a senior analyst at IDC. - Most likely, the market performance as a whole will be reserved until the end of 2016, but we expect higher growth in the next year". 

Samsung is still holding the second place among the smartwatches producers. The company increased its sales by 51% to 600 thousand units.; its market share increased from 7% to 16%.

Chinese company Lenovo Group is in third place. Sales of its smartwatches increased by 75% to 300 thousand units. LG Electronics Inc., which increased sales by 26%, sold nearly the same number of devices.

Swiss Garmin Ltd., sold 100 thousand smartwatches, also entered the top-five largest manufacturers. The company increased its market share from 2% to 4%.

Despite the statistics, Apple does not seem to be losing courage. The company is going to earn $ 3 billion on inbuilt purchases in mobile application Pokemon GO. This reported Reuters on Thursday, July 21, with reference to brokerage firm Needham & Co. 

The agency notes that the game itself is downloaded from the AppStore for free, but Apple can get a large profit from the inbuilt app purchases. For example, hundred game currency units PokeCoins cost 99 cents, and 14.5 thousand coins are worth almost 100 dollars.

According to Needham & Co’s analyst Laura Martin, the number of users who spend money on inbuilt purchases in Pokemon GO is 10 times higher than number of people who buy additional bonuses in the popular game Candy Crush. Its revenues for the years 2013-2014 amounted to more than a billion dollars. 

source: cnbc.com






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