Apple shares (NASDAQ: AAPL) went into a funk this week after slowing iPhone sales gave the stock its worst week since 2013 and high-profile investor Carl Icahn announced that he had completely sold his position in the Cupertino-based company due to concerns in China. On the far periphery of Apple’s consumer tech interests, however, is another product that generated huge waves up hype in 2016 – and that’s the Apple Watch.
Wearable tech – including smartwatches – is still a niche category without a clear path to challenging smartphones among consumer tech products right now. But Apple’s command over marketshare is still impressive. And a new report that came out on Thursday from the research firm Strategy Analytics shows where Apple stood in that marketplace as of the first quarter in 2016.
Apple shipped 2.2 million units in the smartwatch category in Q1, down from 5.1 million during Q4 in 2015, according to Neil Mawston, the executive director at Strategy Analytics. Those numbers may not be surprising to some observers noting that Q4 including holiday shipments, but Apple’s marketshare also dipped from Q4 of 2015 going into 2016, going from 63 percent to 52.4 percent.
Apple is obviously still the king of the space (as seen in the chart below), but slowing iPhone activity together with this marketshare drop mean that there’s going to be added pressure on the next Apple Watch to outperform its predecessor. (On a personal note: I’m still among the unconverted.)