The Success of the Apple Watch is Helping Everyone
The Apple Watch has not only established itself as a leading smartwatch but has become a transformative force in the wearable tech industry. While it remains exclusive to iPhone users, its stellar sales are catalyzing interest and growth across various segments of the smartwatch market, especially among Android users looking for viable alternatives.
According to the latest forecast from CCS Insights, the wearable tech industry is set to explode. The firm projects that sales will soar to 260 million units by 2023, up from 142 million, creating a staggering $30 billion market. This growth isn’t merely confined to smartwatches; it includes a surge in sales of hearables and innovative products like smart shoes.
The year 2018 was a significant milestone in the wearables sector, witnessing a 29% increase in sales to 121 million units. Smartwatches and sports watches accounted for a substantial portion of this growth, with sales reaching 74 million units. Apple emerged as a standout player, selling 26 million Apple Watches—marking a remarkable 63% increase and granting it a commanding 65% share of the smartwatch market.
Ben Wood, the chief of research at CCS Insights, articulated a crucial observation: “The Apple Watch has become a halo device for the whole smartwatch category.” This suggests that the Apple Watch is acting as a lure for Android users who aspire to join the smartwatch revolution. The increased demand is significantly benefiting brands like Fitbit, Fossil, Garmin, Huami, Huawei, and Samsung, all of which reported higher sales in 2018 as they captured the attention of those seeking alternatives.
Fitbit’s Versa exemplifies this “halo effect.” With a competitive price point and solid brand reputation, it has attracted many Android users, effectively filling the gap left by Apple’s exclusivity. Brands like Samsung and Huawei have also made noticeable gains, leveraging their established foothold in the smartphone market to promote their smartwatches.
Moreover, traditional watchmaker Fossil has emerged as a key player, selling 3.5 million smartwatches in 2018 alone. This segment of the market is maturing rapidly, with numerous established watchmakers launching their second-generation devices, thereby keeping competition fierce and innovation flowing.
Kids’ smartwatches have carved out a noteworthy niche, with CCS estimating that 27 million units were sold in 2018, 25 million of which were in China. The appeal of new features such as video calling and contactless payment options for school-related expenses has contributed to this growth. According to CCS, sales in the U.S. are poised to double as telecom carriers push these devices equipped with cellular connectivity.
In the sports watch segment, brands like Garmin and Huami’s Amazfit dominate, with several million units sold annually. CCS projects that sales in this category will increase to approximately 7 million units by 2023. Fitness trackers, too, are witnessing a resurgence, thanks largely to Xiaomi’s continued popularity in the budget-friendly sector, with shipments rising from 39 million in 2017 to 44 million in 2018.
The future looks particularly promising for smart hearables. While CCS anticipates only 3 million units sold in 2019, numbers are predicted to soar to 23 million by 2023. The growing trend of smartphones lacking headphone jacks is expected to fuel this demand. Innovations such as active noise cancellation and enhanced health tracking features are anticipated to emerge as the next frontiers in hearables, with Apple’s upcoming AirPods likely to make a substantial impact.
Lastly, the concept of smart clothing remains a topic of discussion but has yet to catch fire. CCS predicts that smart shoes might finally break ground in this area, projecting sales of 2.5 million units in 2019. As more companies explore the intersection of fashion and technology, the future of smart clothing holds great potential.
