Apple Sold a Record 6 Million Apple Watches in Q4 2016, Generated More Than 80% of Total Smartwatch Revenue
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Apple shipped a stunning 6 million units of the Apple Watch during Q4 2016 setting a new quarterly shipment record and generating over $2.6 billion in revenue, according to a report by Canalys. When compared to the rest of the global smartwatch market during the same period, the Apple Watch’s stellar performance becomes even more apparent.
Cupertino accounted for a majority of the 9 million smartwatches that were shipped worldwide in Q4 2016 and generated more than 80% of the total smartwatch revenue. Apple cumulatively shipped around 11.9 million Apple Watches during 2016, snapping up nearly 50% of the market. Its closest competitors, Fitbit and Samsung, accounted for a mere 17% and 15% of the smartwatch market respectively. Canalys also made note of Xiaomi’s outstanding quarterly performance, in which it sold a record 5.5 million Mi bands.
Apple CEO Tim Cook hinted at the Apple Watch’s record-breaking performance during its recent earnings report for the first fiscal quarter of 2017, which was released at the end of January. Though he declined to share exact sales figures, Cook proudly noted that the Apple Watch set records in units and revenue and boasted that “the holiday demand was so strong we couldn’t make enough”, refuting rumors that Apple Watch sales had experienced a year-on-year decline.
Despite the supply constraints, Apple experienced 12% year-on-year growth of smartwatch shipments during Q4 2016. Canalys analyst Jason Low reported that the tech giant’s success in the smartwatch market could be attributed in large part to pricing adjustments.
“Apart from the hardware and software improvements of the new models, Apple succeeded mainly due to its streamlined marketing and re-aligned pricing, which helped it address a wider audience,” Low said. “The Series 1’s lower entry price and Apple’s more focused fitness messaging made its Watch both more attainable and more relevant.”
Those sales figures were also undoubtedly aided by feature improvements, as Canalys suggests. The Series 2, for instance, now offers built-in GPS, a brighter display, and is waterproof. The Nike+ edition Apple Watch offers distinct features in addition to those supported by the Series 2, including unique app integration and a lighter and more breathable band.
Apple Insider notes that the Canalys estimates differ from those projected by Strategy Analytics, which reported that Apple sold approximately 5.2 million units out of 8.2 million overall during Q4 2016. Strategy Analytics did not dispute however that Apple had a record-setting quarter in which it dominated the smartwatch segment.
