Global smartwatch shipments grew 352% in 2015, primarily fueled by the entrance of the Apple Watch into the category.  Like other iconic Apple products, the Apple Watch coming out of the gate has met only moderate commercial success in its first year but has managed to 'move the needle' for the entire category.  With a full upgrade/refresh of the Apple Watch likely to come in 2017, rather than 2016, global smartwatch shipments are projected to see a more tepid 40% growth in 2016, this time fueled primarily by Android Wear smartwatches. The overall market is expected to maintain an enviable 7-year CAGR of 33% through 2022.

Given that any watch - even a smartwatch - will have a longer replacement cycle than other personal consumer electronics, we believe Apple will not adhere to the product upgrade cycles of its other mobile devices, instead prolonging major upgrades to a minimum of every 2 years. We should then see a bounce back for Apple in 2017 when a full refresh is launched.  

Our extensive report, Global Smartwatch Sales Forecast for 88 Countries: 2012 to 2022, forecasts smartwatch sales for 88 countries from 2012 to 2022, identifying the 'Big 10' markets that hardware vendors, component suppliers, operators, software developers, content developers and other stakeholders can prioritize to target 3 out of every 4 smartwatches sold worldwide.

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