Smartwatch sales take a plunge as world waits for new devices

According to a new industry report from IDC out this morning, smartwatch shipments experienced “significant” declines in the third quarter, as total shipments were down 51.6 percent from the same time last year. Just 2.7 million units were shipped in Q3 2016 versus 5.6 million in Q3 2015.

While IDC offers several explanations as to why sales are dropping – including issues related to launch timings, Android Wear delays, and more – the numbers still indicate how smartwatches are having a hard time finding traction among a majority of consumers.

"The sharp decline in smartwatch shipment volumes reflects the way platforms and vendors are realigning," Llamas said.


Although Apple Inc. remained the global leader in the smartwatch market during the third quarter, but the segment as a whole saw a massive decline that may indicate waning consumer demand.

Llamas added that Google's decision to hold back the Android Wear 2.0 operating system has also limited sales.

"Samsung's Gear S3, announced at (the trade show) IFA in September, has yet to be released. Collectively, this left vendors relying on older, aging devices to satisfy customers."

Nonetheless, the market is showing limited growth, according to IDC.

"It has also become evident that at present smartwatches are not for everyone," said IDC analyst Jitesh Ubrani.

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries.