The global smartwatch market: growth during the coronavirus period

How the growth in sales of smartwatches in the midst of the epidemic broke all records

While the whole world was going through a crisis due to the outbreak of the pandemic in February-March of this year, and the world economy was experiencing great difficulties for four months, the smartwatch market was gaining momentum.

Why is the epidemic driving smartwatch sales?

The demand for the purchase of fashionable and useful gadgets in the first quarter of 2020 grew exponentially. Forcing manufacturers, suppliers and delivery services to “sweat”, because in the first three months alone, more than 230,000 smartwatches were sold, for a total of almost 6 billion rubles.

Let’s remember the moment when the first smart bracelets appeared on the market (this was even before the advent of smart watches). Many at that moment were sure that these devices were the future and everyone would have them in the very near future, because this is not only a stylish and fashionable accessory, but also a bunch of useful functions that you can always carry with you on your hand.

Convenient, stylish and quite affordable, what else can you say.
But, contrary to the expected forecasts, the interest faded out rather quickly. And no one could have thought that now, in the conditions of world restrictions, smart watches will finally become in demand.

What is their secret? Why, despite many restrictions and concerns, the global demand for smartwatches continues to grow?

Having studied various opinions, including specialists from the American analytical agency Strategy Analytics, the conclusion suggests itself. The situation with the coronavirus made many of us think about health, regardless of age, gender and financial capabilities of a person.

In the conditions of home confinement, the ideal option to monitor your health and overall physical fitness is to buy and always have at hand (or rather on your hand) the cherished smart watch with a bunch of useful functions. Many did so, since the online sales channels worked without interruption.

Sales leaders

We are afraid to be too predictable, but Apple still remains the leader in the global smartwatch market. There were no global changes in this regard.

Apple statistics figures according to the US analytical agency Strategy Analytics:
● Total market share increased to 55%
● Shipments increased by 1.5 million compared to the same period last year.
● The total number of shipments was almost 7.6 million copies

Apple has dominated the ranking of the most popular smartwatches for several years. But who knows what will happen next?

The second place in the top smartwatches is taken by Samsung, which is again very predictable. But facts are stubborn things, so we write them as they are. If we talk about the company’s achievements in digital format, then it is worth noting the direct impact of Covid-19 on the sales of this brand. After all, the beginning of the epidemic came precisely from the countries of Asia, and South Korea was among the first.

However, despite this, Samsung has the following metrics compared to 2019:
● In the first quarter of 2020, the volume of deliveries amounted to almost 1.9 million copies;
● The market share in the first quarter of this year decreased by 1%, dropping from 14.9 to 13.9% (we have already indicated the reason for this decline in the previous paragraph).

About the new market player who took the third position

If with the first leading positions, everything was quite predictable and even, one might say, stable, then the third place of the most popular smartwatches remains a mystery to many. For us, by the way, the answer to this question also came as a kind of surprise.

Bronze in the global smartwatch market was given to a brand that is quite famous in the world of electrical engineering. But this name was not so often associated with smartwatches, so the unexpected third place may have shocked Garmin itself.
2020 brought the brand not only the third position in the world in sales of smart watches, but also increased their share to 8% (against 7% a year ago).

Garmin’s numbers look pretty convincing too:
● Increase in market share from 7% to 8% (as we mentioned earlier);
● Sales of smartwatches grew by almost 38% in the first quarter of 2020;
● Over 1.1 million watches sold.

The jump in performance can be explained by the fact that the new smartwatches from the Garmin brand have found a wide response among fitness trainers and sports fans.

Actually, the results were not long in coming. The third place among the world leaders in sales of “wearable” equipment for the first time, almost in the last two years.

*data American analytical agency Strategy Analytics

What’s in store for the smartwatch market in the near future?

It is, of course, difficult to unequivocally answer this question. Strategy Analytics predicted a new leap in smartwatch sales growth in the second half of 2020.

This is due to the fact that all restrictions have already been removed, people are beginning to return to their usual pace of life. Shopping centers and show rooms have opened, and buyers who have become bored during this time from isolation and prohibitions will begin to acquire new electronic gadgets with even greater enthusiasm.

The peculiarity of “smart” watches over other electronic devices, in particular smartphones, lies in their multifunctionality. The wearable technology market constantly introduces improved innovations that constantly stimulate consumer interest and thus continue to maintain the level of demand and sales to this day.

It is possible that in the near future, smart watches will learn to replace literally all electrical devices that surround us and thereby become the undisputed sales leader on world markets.

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