The second quarter saw a narrowing of the gap between Apple and its competitors in terms of the number of smartwatches shipped.

 The Apple Watch continued to dominate the market for smartwatches during the second quarter of 2018, with worldwide shipments of over 3.5 million units. Apple’s market share in the worldwide smartwatch market dropped to its lowest level in previous years, despite the fact that the company’s sales were up by thirty per cent compared to the corresponding time last year.

According to research by Canalys, the total number of smartwatches shipped throughout the world between April and June was 10 million devices. This was a significant increase from the previous quarter, however, it was lower than the record-breaking fourth quarter of 2017.

The fact that the Apple Watch has been steadily losing market share even while it has seen a good year-on-year quarterly gain in shipments is a startling development. In the past two quarters, Apple’s market share dropped from 43 per cent to 34 per cent, and it rose to over 60 per cent during the Christmas quarter of 2017. Competitors like Fitbit and Garmin have staged strong comebacks, which has caused Apple’s share to drop.

In the second quarter, Apple Watch deliveries to Asia exceeded 250,000 devices, with the LTE version responsible for around 60 per cent of this amount. China was excluded from this statistic. During that period of time, this product was the smartwatch that sold the most copies in Asia. Despite this, this only accounts for a very little fraction of its overall revenues.

According to Jason Low, Senior Analyst at Canalys, “Apple’s choice to expand worldwide with operators has immediately paid advantages in the Asia Pacific.” 

“Since the debut of the Apple Watch Series 3, Apple has forged relationships with operators in Australia, Japan, and Singapore,” the article states. “Thailand, India, and South Korea were added in the most recent quarter.”

It is going to be progressively challenging for Apple to keep the market share that it now has. New health, coaching, and mapping capabilities are helping competitors differentiate their products and services from one another. In addition, their shipments have just reached the one million quarterly shipments threshold, which has enabled them to take advantage of economies of scale.

Apple will need to gain both replacement customers and new consumers in order to compete with new watches coming from Google, LG, and Samsung. IFA will be taking place soon as well, and we are certain that there will be some treats in store from companies such as Fitbit, Garmin, Fossil, and others.

The Apple Watch Series 4 will be the company’s response to the competition. It is anticipated to be released in September, and it will most likely come with some aesthetic modifications, improved battery life, a more powerful CPU, and an increase in the number of functions related to health and fitness.

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