According to the latest research from our WDE (Wearables) service, global smartwatch shipments grew 223 percent annually to reach 4.2 million units in the first quarter of 2016. Apple captured 52 percent global smartwatch marketshare, dipping from 63 percent share in the prior quarter.

Our full report can be viewed by clients here.

Global smartwatch shipments grew a healthy 223 percent annually from 1.3 million units in Q1 2015 to 4.2 million in Q1 2016. Global smartwatch growth is being driven by consumer demand for Apple, Android Wear and Tizen models across North America, Western Europe and Asia. On a sequential basis, global smartwatch shipments fell 48 percent from 8.1 million in Q4 2015 to 4.2 million in Q1 2016, due to seasonality trends.

We estimate Apple Watch shipped 2.2 million units and captured 52 percent smartwatch marketshare worldwide in Q1 2016, dipping from 63 percent share in Q4 2015.

Samsung shipped 0.6 million smartwatches, capturing 14 percent marketshare worldwide for second position. Apple Watch and Samsung Gear models are expanding fast across dozens of countries, but competition from LG, Motorola and others is ramping up quickly.

Now that many Apple early-adopters have their smartwatches and all of the holiday gifts have been unwrapped, it would seem the honeymoon for version 1 of the Apple Watch is over. Future traction for Apple Watch 2 will be closely linked to compelling apps that better exploit the usability of wearable tech, while offering autonomous 4G connectivity and enhanced battery life -- all of which are in rather short supply today.


Exhibit 1: Global Smartwatch Vendor Shipments and Marketshare in Q1 2016  [1]