A research report indicates that the Apple Inc. (NASDAQ:AAPL) Apple Watch dominated the smartwatch category in the fourth quarter of 2016. According to the report, out of all smartwatch sales, half of them were for the Apple Watch. And of all smartwatch revenues, more than three quarters were for the iPhone maker’s wearable.
Best quarter ever
Earlier in the year, the chief executive officer of Apple, Tim Cook, revealed that the Apple Watch recorded it’s best-ever performance in the fourth quarter of 2016. Cook also added that the sales of the smartwatch were so strong that production couldn’t meet demand.
Though numbers for the Apple Watch are never broken down and are always listed in the ‘other products’ category, Canalys’ researchers have been able to estimate the shipment figures. The researchers calculated that approximately 6 million Apple Watch devices were shipped in the fourth quarter of 2016. Compared to the previous year, this was a growth rate of 12 percent. With the total smartwatch shipments having been more than nine million units, those of the Apple Watch clearly comprised more than half.
As for the revenues, the Apple Watch raked in over $2.6 billion in the same quarter. This was approximately 80 percent of the revenues in the whole smartwatch segment.
Pricing and marketing changes
The analysts attributed the success of the Apple Watch to the re-aligned pricing as well as streamlined marketing. These two factors helped the Cupertino, California-based tech giant to reach a broader audience.
“The Series 1’s lower entry price and Apple’s more focused fitness messaging made its Watch both more attainable and more relevant,” said one of the analysts at Canalys.
In 2016 the Canalys’ analysts estimated that the total shipments from Apple were 11.9 million which constituted of about half of the total global shipments of smartwatches.
Though Apple already has a headstart with regards to smartwatches, it is a market that is expected to grow slowly. Analysts estimate that this market will be worth a little over $21 billion by 2021 having grown at a compound annual growth rate of 13 percent.
In Tuesday’s trading, shares of Apple rose by 0.95 percent to close the day at $131.53.