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Apple Dominates Smartwatch Category That's Still 'Waiting for a Market,' Says Juniper

The smartwatch is a “category waiting for a market,” said Juniper Research analyst James Moar in a research report Tuesday. While numerous smartwatch vendors have produced a variety of watches -- creating a market with customization and price segmentation --…

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there have been “no great leaps forward that have revolutionised the category,” said Moar. Recently launched devices have added aesthetic appeal with “more polished looks” and subtle changes in functionality, but there has been no major change in device capabilities or usage, Moar said. “With smartwatch functions established, it is now up to consumers to decide if they want them, rather than technology companies providing more reasons.” Apple Watch had 52 percent of global smartwatch shipments last year, despite launching in early Q2, said Juniper. Android Wear shipments were under 10 percent for the year, and Samsung’s Tizen-based Gear S2 hasn't achieved strong sales since its November launch “despite being well received,” said the researcher. Most other smartwatch sales are from “cheaper, simpler” devices from smaller players, such as Martian, X and Razer, with its recently announced Nabu Watch, it said. Apple Watch aside, the market has been driven by lower-priced devices, including the Breitling B55 Connected and the Martian Guess Connected, which typically provide basic notification and tracking functions without an app-capable operating system on the device itself, it said. But Juniper said the smartwatch ecosystem is “growing rapidly,” with dedicated software companies emerging to develop games and productivity apps. Finance deals with retailers will be a key part in bringing prices down and making smartwatches more visible to general consumers, it said.