Top 3 best smartwatch manufacturers - Can you guess who?
The popularity of smartwatches comes in waves. At first, they are very popular, then no one needs them, and after a while, there are queues for them again. I have not been able to explain these fluctuations in demand. There is a slight seasonality in this issue, but it is not so important and does not affect the overall demand for watches. Most likely, this is not related to other phenomena and just fluctuates regularly. Now a well-known analytical agency has issued us a new report that clearly shows which manufacturers of smartwatches are in chocolate, and which ... well, you understand. This study is interesting because it gives an insight into this specific market from a side that few people have thought about.
Smartwatch market research
The agency I'm talking about is called Counterpoint Research, and it is they who have published a new report on the top smartwatch manufacturers by revenue. At first, I did not want to write about it, but then I discussed the news with several people and realized that they did not even know about the state of affairs in the smartwatch market, remembering those brands that are always heard. Among them were Apple, Xiaomi, Huawei, Samsung, FitBit, Amazfit, and others, but everything turned out differently. Nobody guessed the top three.
Probably, few people will be surprised that at the top of the mountain of smartwatch manufacturers is Apple with its Apple Watch. The company deservedly occupies a leading position, both in terms of the number of watches sold, and in terms of how much it earned on them in the first half of 2020. Over the year, its position has only strengthened and now it occupies 51.4% of sales instead of 43.2%.
This year, sales of smartwatches, of course, were lower than they could have been due to difficulties with supply chains and delivery to points of sale. At the same time, users have become more interested in this gadget in contrast to smartphones. Where smartphones showed a drop, smartwatches, on the contrary, were bought much more often than before. After the first quarter, experts explained this by the desire of people to take better care of their health. As a result, many manufacturers increased sales, but if it wasn't for the difficulties with production and delivery, the growth would have been even greater.
In the first quarter of last year, Samsung confidently entered the top three, selling 9.3% (second place) of smartwatches in the world, but now its position has significantly shaken and it has stopped at 7.2%, taking only the fourth place. But who shifted it from the second position, really surprised many.
Garmin ranks second in terms of revenue in the first half of 2020, which rose in the percentage of sales over the year from 8.9% to 9.4%. The growth is not so impressive, but it is, although many do not think about watches of this brand at all.
Huawei recorded the most growth. Last year, it sold only 5.5% of smartwatches, and this year its figure was already 8.3%. Most likely, this growth is largely due to the great popularity of the brand in the home market in China. Immediately after the situation with the coronavirus in this country was taken under control, people began to frantically spend money and buy equipment. That is why for two quarters in a row, contrary to all forecasts, Huawei has been at the top of the ranking of smartphone manufacturers.
So, if you rank the smartwatch by market share in Q2 2020, you get the following result:
- Apple - 51.4%
- Garmin - 9.4%
- Huawei - 8.3%
- Samsung -7.2%
- Xiaomi - 5.1%
- Amazfit - 2.4%
- FitBit - 2.4%
- Fossil - 2.1%
- Others - 11.8%
It turns out that all the other manufacturers combined fell short of Apple, and if you drop the "other" category, then companies not in the top three in total earn slightly more than the second and third place in total.
Based on these data, we can conclude that Huawei and Apple made a big leap forward and almost only together brought an increase in revenue growth from the smartwatch market, which recently amounted to 20% compared to the same period last year. It is also interesting to see what the top five best-selling watches look like in the first half of this year.
Best Selling Smart-Watches
- Apple Watch Series 5
- Apple Watch Series 3 (apparently due to price)
- Huawei Watch GT2
- Samsung Galaxy Watch 2
- Imoo Z3 4G
Strange, isn't it? Everything is logical at Apple - there are two models in the first two positions. There are no questions for Huawei either. Samsung is also a stretch, but everything is clear. The question is, where is Garmin in this circuit. It turns out that they are taken not because of any particular successful model, but in general because people like them.
Most likely, in the next report, Samsung will again return to the top three, as it released a new, albeit quite expensive, watch earlier this month. If they sell well, the rating will change again. And in the fall, they should show the new Apple Watch 6, which may turn out to be even cooler than the Apple Watch Series 5, and give the company even more growth.
I wonder what would happen if the Apple Watch could be used with any phone, not just the iPhone. So far, it turns out that Android users almost do not buy smartwatches, if Apple with its approximately fifth market share and "exclusive" watches took more than half of the smartwatch market.