Counterpoint: Global smartwatch shipments grew 48% year-on-year in Q1 2019, with Apple Watch accounting for one-third

Counterpoint: Global smartwatch shipments grew 48% year-on-year in Q1 2019, with Apple Watch accounting for one-third

The latest research data from Counterpoint's global smartwatch tracking shows that global smartwatch shipments grew 48% year-on-year in the first quarter of 2019, driven by Apple, Samsung, Fitbit and Huawei.

Commenting on the significant shift in the market, Satyajit Sinha, Analyst at Counterpoint Research, said, “Despite weak demand in the iPhone market, Apple Watch shipments grew significantly by 49% year-on-year. Apple continues to focus on health-related features such as the ECG feature and fall detection on the Apple Watch Series 4. Our latest consumer survey shows that the ECG feature of Apple Watch is the most popular feature. Currently, Apple’s ECG feature has been approved by healthcare authorities in 19 countries and regions including Hong Kong, France, Germany, Italy, Spain and the UK.”

Sinha further added, “Heart rate sensors for health monitoring, GPS and pedometer sensors for fitness, and embedded NFC sensors for payment are key integrated technologies. These use cases along with cellular-enabled notification applications are driving the adoption of smartwatches. However, battery life remains a key consideration for consumers, regardless of the market and price range.”

Figure 1 : Global smartwatch brand shipment share Q1 2018 vs Q1 2019

Senior Analyst Sujeong Lim commented on the performance of other vendors, "Samsung's smartwatch shipments grew 127% year-on-year in the first quarter of 2019, and its market share rose to 11%. This is mainly due to the improved battery life and traditional round dial design of the new Galaxy watch series. In addition, the product also provides cellular LTE connectivity, which is more advantageous than other similar products targeting Android smartphone users. For the Android camp and Samsung's large user base, the Galaxy watch series is a very good alternative to the Apple Watch."

Huawei also increased its market share to 3% in the first quarter of 2019, thanks to the impressive sales of its new Huawei Watch GT. Attractive design, low price, increasing recognition of the "Huawei" brand, and a large user base of smartphones are driving demand for Huawei smartwatches. In addition, Huawei has shifted its focus to selling more Huawei-branded smartwatches, while Honor-branded smartwatches are also selling well.

Brady Wang, Associate Director, commented on the innovation of the smart wearable device industry, "Folding screens have begun to enter the field of smart watches. Nubia tried to design a "smartphone + smartwatch", adding smartphone functions to the appearance of a watch. The user interface of Nubia Alpha has functions such as gesture control, quick photography and mobile applications. This makes the smartwatch more functional and the user interface more user-friendly. However, the smartwatch industry is still in the early stages of the evolution of form factors, and new products need to perform well in various indicators to gain an advantage in the market competition. Smartwatches need to become thinner, more durable, and fashionable, with as little fragmented software as possible, and the more intuitive the user interface, the better. We expect that smartwatches with flexible displays will become mainstream after 2025."

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