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Apple Watch Dominates Wearables Market

Apple reported increased wearables revenues in Q4 of 2019. The Apple Watch is now the world’s most popular smartwatch.

Apple’s recent earnings call revealed a bright future for the Cupertino tech giant. Long reliant on the iPhone for revenues, Apple managed to grow wearables and services. The revenue increase is more than enough to make up for dwindling iPhone sales.

5.7 million Apple watches were shipped in the fourth quarter of 2019. This accounts for 47% of the smartwatch market, making Apple the clear leader. Although the Apple Watch debuted much later than competitors’ wearables, it quickly dominated the market.

The first Apple watch was launched in April of 2015. Although Apple has not disclosed sales figures for the first year, it’s estimated that 15 million units were sold. From the beginning, the product generated $10 billion in revenues.

Apple has steadily improved the Apple Watch over time. The first models featured very weak processors, making them overly dependent on the iPhone for heavy lifting. The newest model boasts a 64-bit dual core processor, making it more autonomous. The device is still intended to be used with an iPhone, however, users can now make calls directly from cellular-equipped Apple Watches.

The growth in Apple Watch sales comes at a critical juncture for Apple. Dwindling iPhone sales have cast doubt on the future of the company. The iPhone once accounted for two-thirds of Apple’s revenues, spooking some investors. With only about half of Apple’s revenues coming from the iPhone, a growth in wearables and services is sure to please investors.

Future versions of the Apple Watch are speculated to include more health features, such as assistance for those with hearing disabilities. It may also warn users when they’re exposed to too much noise.

The competitive landscape for the Apple Watch is favorable for Apple. They sold over six times as many smartwatches as Samsung, their closest competitor. FitBit managed to sell less than 10% as many smartwatches as Apple. Market hegemony can often lead to monopoly, as consumers want popular, in-demand products. Given the competition, Apple is likely to grow Apple Watch sales in 2020.


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