The global shipments of smartwatches in 2019 are estimated to total around 62.63 million units, according to the latest tracking analysis from the research firm TrendForce. Looking ahead to 2020, smartwatch sales will benefit from the lower prices of the earlier versions of the Apple Watch devices and the releases of new smartwatch models from other branded device manufacturers, adds the research group.
TrendForce forecasts that the global smartwatchshipments in 2020 will grow by 28.6% year-over-year to around 80.55 million units. The total shipments of the Apple Watch devices for the same year are also forecasted to grow by 21.8% year-over-year to around 34 million units.
“The strong demand for the Apple Watch has been the chief growth driver of the whole smartwatch market,” says Jason Tsai, TrendForce analyst for wearable devices.
He points out that Apple adjusted the prices of the Series 1 models in conjunction with the launch of the Series 2 models. The move helped galvanize the overall sales of the Apple Watch devices.
“Apple’s success in the smartwatch market is based on an effective pricing strategy and a proactive approach to the development of new products,” Tsai says. “The price cut for the Series 1 models, in particular, has been a significant help in boosting shipments.”
TrendForce’s long-term analysis of the smartwatch market currently forecasts that the global shipments in 2022 will break the ceiling of 100 million units to a total of around 113 million units. Tsai notes that smartwatches still lack dedicated killer apps that can really pique the curiosity of most consumers.
However, these devices have already incorporated a diverse range of biometric and lifestyle functions that demonstrate value to their users, he adds. The focus of product development has also shifted. Instead of adding new hardware components and functions, device manufacturers now aim to raise consumers’ interest in adopting smartwatches.
“The emphasis on value over specs gives entry-level models a key role in sales,” Tsai says. “This is the reason why the Apple Watch models of the latest Series 5 are not that much different hardware-wise from the models of the discontinued Series 4, and why Apple has kept the Series 3 models as the entry-level options.”