Smartwatch sales fall 52% over the past year

Smartwatches, once considered as next-generation technology devices, are having a hard time broadening its influence. Embedded with various high-tech functions and resembling traditional watches, smartwatches are offering a wider choice for consumers, and yet its market is shrinking. Market observers say the fact smartwatches have yet to completely become independent from smartphones and battery life problems are hampering a broader reception of smartwatches by consumers.

According to German statistics portal Statista on Monday, sales of Apple Watch, which debuted in April last year, increased to 5.1 million units in the fourth quarter of last year, from 3.6 million in the second quarter and to 3.9 million in the third quarter. However, the figure has plunged to 2.2 million in the first quarter of this year, falling further to 1.6 million units in the second quarter and 1.1 million in the third quarter.

The sluggishness suffered by Apple, the leading smartwatch maker, is causing a fall in market size. According to IDC, smartwatch sales in the third quarter of this year posted 2.7 million units, down 51.8 percent from 5.6 million units a year earlier. Apple Watch remains No. 1 in terms of market share at 41.3 percent, but as the size of market itself is shrinking, Garmin (20.5 percent) of Germany and Samsung Electronics (14.4 percent) are also likely to be hit hard.

"Smartwatch has fundamental limits in display size that materializes technology, restricting them to grow independently from smartphones," a source from the electronics industry said. "It could be a better strategy to target a niche including those for sports use instead of emphasizing the watch-like features."

PARK SUNG JIN  psjin@donga.com

박성진 기자psjin@donga.com