Apple Watch had massive holiday quarter; took nearly 80% share of total smartwatch revenue

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.

“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, in a statement. “The Series 1’s lower entry price and Apple’s more focused fitness messaging made its Watch both more attainable and more relevant.” Canalys estimates that Apple cumulatively shipped 11.9 million Watches in 2016, holding market share of around 50% globally for the year.

Canalys: Smartwatch worldwide unit share by vendor, 2016

Wearable band shipment data is taken from Canalys’ Wearable and Virtual Reality Analysis service, which provides quarterly market tracking, including country-level estimates. Canalys defines smartwatches as multi-purpose devices that serve as accessories to smart devices, are designed to be worn on the body and not carried, run an operating system and can run third-party computing applications. Basic bands are devices serving a specific set of purposes that act as accessories to smart devices, are designed to be worn on the body and not carried, and cannot run third-party computing applications. Bands are wearables designed to be wrapped around the body, including watches, and do not include activity trackers in the form of clips.

Source: Canalys

MacDailyNews Take: Total dominance for Apple’s little timesaver that we’re seeing on more and more wrists every day!

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    1. But but but, according to online doofuses & self-serving anal-cysts Apple Watch is a gigantic FAIL. Is it actual sales or just what some Apple-hating goofball sez? Who to believe!!???!!!

  1. Are the graphics and the text from the same article?

    The text states that out of a smart watch market of 9 million units, Apple watch Apple shipped 6 million ( 66% ), but the graphic shows that Apple accounted for 49% of the market.

    1. The text (6M and 9M) refers to 4th QUARTER.

      The graphic (and the numbers in the grid immediately below) are for the entire YEAR of 2016. So no error there.

      But yes that Q4 was an even more impressive 66%

  2. AppleWatch is already deemed a failure by Wall Street and tech-pundits. Selling more AppleWatches isn’t going to change anything in terms of perception. Once people get something in their heads, it’s nearly impossible to change the way they think. Their minds are made up even if their facts are wrong.

    If it’s an Apple product and it doesn’t sell in mind-crushing numbers, it’s automatically considered a failure. It was originally believed by one person that AppleWatch would sell in the tens of millions every quarter. Once it was realized those expectations couldn’t be met, that marked the AppleWatch as a failure. I think it was originally believed that anyone who owned an iPhone would automatically own an AppleWatch. That didn’t happen and AppleWatch was doomed from the start.

  3. It’s not surprising that the Apple Watch did well considering a new version was released. That supplies were constrained is also typical of a new Apple product.
    One can argue that Apple lost out on additional sales but in reality it is hard to ramp up a product to satisfy initial demand and then slow down production as demand drops.
    As long as Apple keep updating the watch on a yearly basis they will have a success on their hands. Just wish they would do the same for other products like the Mac.

    1. ” Just wish they would do the same for other products like the Mac.”

      Often a comment stated here. Particularly most visceral by those that haven’t updated their current 4-8 year old ‘Mac’s because they are still going strong, and the updates when they are released are so-called, ‘outdated’.

      Interesting that Intel ‘LAUNCHED’ new processors a couple of weeks ago and if everyone did a little research would have found that they weren’t being shipped as yet, and one in particular would ONLY be available sometime in March, i.e., for ‘TESTING’.

      I can’t remember the exact phrasing, but Steve Jobs once told us that one of the biggest holdouts for many of the ideas that he had; was the fact that the materials to do so required ‘others’ to advance their technologies. And if we look at what the competition is doing, it is waiting for Apple while their only ‘achievement’ is inventing a faster copier.

  4. Yet the Apple Watch sucks compared to a Fitbit for fitness tracking. I sit on my butt most of the day and the Apple Watch tells me every day I’ve stood for 12 hours +. LOL. And then when I’m actually working out and doing cardio for 45 minutes to an hour it is inaccurate with my heartbeat and dies not give you cardio in a graph. Sleep tracking apps from third parties are a joke. There are 2 things I like about the Apple Watch is answering text messages and taking the odd call when I can’t get to my phone. And that is it. I sure hope Apple fix the fitness issues with the next watch release

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