Wearables, once seen by manufacturers as a new, lucrative vertical to expand to is not living to expectations. Newest data from international research firm IDC paints a bleak picture for the product segment, as shipments are down 51.6 percent year-over-year for the Q3 of 2016. Even the mighty Apple Smartwatch felt the hit, as shipments for those products dropped to 71.6 percent. Ouch.
Despite that Apple is still the leader in the market, retaining a 41.3-percent market share. To put the drop in perspective, in Q3 2015 the company managed to ship 3.9 million smartwatches, while in Q3 2016 they only shipped a patry 1.1 million.
The only company that’s making a killing in the smartwatch game is Garmin, whose sales increased to 324 percent, moving it to second place, behind Apple.
So what’s happening here? Well, IDC thinks it’s the lack of new hardware, as the new version of the Apple watch didn’t hit markets until later in Q3. Android Wear 2.0 meanwhile, has been delayed to next year, which you won’t be seeing new models this Christmas – that also means there’s no real incentive to buy a smartwatch right now.