Apple Vision Pro: A Trillion-dollar Insurance Policy

At the launch of the iPhone 15 and Watch 9 series this week, Apple mentioned that it was on track to release the Apple Vision Pro, which it announced in June this year, in early 2024. It has also included some features in the new iPhone and Apple Watch that are consistent with its Vision Pro development:

  1. A double-finger tap gesture can be used to select actions in the Apple Watch 9. The gesture uses a mix of sensor inputs processed by the Watch 9’s upgraded neural engine to identify the prompt. While the Apple Vision Pro uses cameras to spot gestures, the new Watch interactions will engender the use of subtle hand gestures that will also be used to interact with the Apple Vision Pro.
  2. The new iPhone 15 Pro and Pro Max cameras can record images and videos stereoscopically. When viewed via the Vision Pro, the images and videos will have depth and provide a more immersive experience.

In our analysis of the Apple Vision Pro, we highlight that it is the most complex consumer electronics product ever made. And it is already causing a shift in approach by its rivals.

Nevertheless, we still believe that Apple is using the Vision Pro essentially as an insurance policy. The majority of Apple’s revenue and profit is derived from the iPhone product line, and related products and accessories – Watch, for example, would not exist without iPhone.

Therefore, iPhone is the core of Apple’s almost $2.75-trillion market cap (at the time of writing). Apple is bound to do anything in its power to defend the iPhone’s market position.

For a long time, people have speculated that the product most likely to replace the smartphone as their primary interface with digital life will be some sort of augmented reality device. So far, the eXtended Reality (XR) market has been disappointing – generating a few 10s of millions of unit sales but not a huge amount of consistent usage, apart from some niche enterprise use cases. Furthermore, the technical challenge of making true augmented reality glasses has proven to be beyond the capabilities of even the most technically gifted companies.

Apple is therefore not immediately threatened by the slowly developing XR industry. But would it be wise for it to sit on the sidelines and watch while potential competitors work on what might, one day, be a product that can truly compete with its iPhone revenue stream? Of course not, and it hasn’t.

For Apple, the worst possible outcome would be if the XR segment took off strongly and it did not have a product in the game. Even if Apple spends a few billion dollars developing its XR products and the market still doesn’t take off, it would be costly but scarcely make a dent in its ample cash reserves.

So, Apple has made the logical choice and invested in creating the Apple Vision Pro. Along the way, it has amassed an impressively large patent portfolio that it can use to defend its position.

If, ultimately, the XR market does take off, Apple will be in a prime position to exploit the opportunity. However, if it continues to behave as an interesting niche market, then Apple has cemented its place by having a product that will be used to measure all others.

Subscribing clients can read our full analysis of the Apple Vision Pro that also includes sales projection scenarios.

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India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023

  • The global smartwatch market continued to contract in Q1 2023 following an 8% YoY decline in Q4 2022.
  • Fire-Boltt surpassed Samsung for the first time in the global smartwatch market, capturing the second spot.
  • All regions except India witnessed a YoY decline in shipments in Q1 2023.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – May 25, 2023

Global smartwatch shipments contracted 1.5% YoY in Q1 2023, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. The 121% growth in India’s shipments managed to restrict the decline. This was the second consecutive quarter of a YoY decrease in global shipments, which were hit by the seasonal decline in demand for products from major players like Apple and Samsung, along with consumer sentiment dampened by global financial pressures.

Research Analyst Woojin Son said, “The global smartwatch market, which had been experiencing steep growth for several years, has entered a period of stagnation since the end of last year when it declined 8% YoY in Q4 2022. Amid a global slowdown in demand for tech devices, the smartwatch consumption trend has also undergone a transformation. The market share of high-price and high-performance HLOS smartwatches*, primarily released by Apple and Samsung, decreased from 60% in Q1 2022 to 53% in Q1 2023. On the other hand, the market share of Basic smartwatches* significantly increased from 23% to 34% driven by rapid growth in the Indian market. Although the overall smartwatch shipment volume declined slightly compared to last year, affordable products that offer a certain level of performance generated substantial demand based on their price accessibility. These low-end smartwatches are also absorbing or replacing the existing smartband market.”


Global Top 3 Smartwatch Brands’ Shipment Share, Q1 2023 vs Q1 2022

Global Top 3 Smartwatch Brands’ Shipment Share, Q1 2023 vs Q1 2022Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q1 2023

Market summary

  • Apple’s shipment volume fell 20% YoY in Q1 2023. This was the first time in three years that its Q1 shipments fell below 10 million units. As a result, Apple’s market share, which was 32% in Q1 2022, dropped to 26%. This can be attributed to the ongoing macroeconomic crisis, which has led to decreased accessibility to relatively higher-priced Apple Watches. Despite the Apple Watch Series 8’s release about a month ahead of its predecessor, it did not achieve the same level of success as the previous model.
  • Indian brand Fire-Boltt surpassed Samsung for the first time and reached the second position in the global market. Its shipments increased by approximately three times compared to the previous year and saw a 57% growth compared to the previous quarter. This reflects the rapid growth of the Indian market, just like other local brands such as Noise and boAt.
  • While Samsung experienced a 15% increase in shipments in its key market North America, it witnessed a decline in shipments in other major markets. As a result, its overall global shipments declined by 15% compared to the previous year and 21% compared to the previous quarter.
  • Huawei, the most influential Chinese OEM, saw a 14% YoY decline in its shipments in the Chinese market, which is a key market for the company. However, Huawei saw increased shipments in India, LATAM and MEA, limiting its overall decline in global shipments to 9%. Huawei has been employing a strategy of relaunching models previously released for the Chinese market in the international market.


Smartwatch Shipment Share by Region, Q1 2023 vs Q1 2022

India smartwatch market share

Note: Figures may not add up to 100% due to rounding

Source: Counterpoint Global Smartwatch Model Tracker, Q1 2023

In terms of the regional markets, India surpassed North America, reclaiming its position as the top region with a 27% share of global smartwatch shipments. Senior Analyst Anshika Jain said, “India’s smartwatch market grew 121% YoY in Q1 2023 driven by affordability, rising customer demand and availability of a wide variety of options in the budget segment. Around 40% of the total shipments were driven by the <INR 2,000 (<$25) price band, its highest proportion ever. The share of India-based players crossed 90% for the first time as they were quick in terms of upgrading their portfolios and adapting their products to customer needs at a reasonable price point.”

China’s smartwatch market experienced a significant contraction of 28% compared to the previous year, as the country’s economy showed a slower recovery than expected. This decline represents the sharpest contraction among the major regional markets and the lowest quarterly shipments since the outbreak of COVID-19 in Q1 2020.

*Types of smartwatches:

  • HLOS smartwatch: Electronic watch running a high-level OS, such as Watch OS (Apple) or Wear OS (Samsung), with the ability to install third-party apps.
  • Basic smartwatch: Electronic watch running a lighter version of an OS, with no ability to install third-party apps.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.


Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research


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Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022

  • Luxshare was the top outsourced smartwatch manufacturer in H2 2022 as it undertook around 40% of Apple Watch production.
  • In Tier-2, Huaqin ranked first as it produced smartwatches from a variety of brands. Meanwhile, LINWEAR, I DO and Yawell benefitted from the stellar growth of Indian brands.
  • The share of outsourced manufacturing shipments is expected to continue to grow as the global smartwatch market expands.

Beijing, New Delhi, Hong Kong, Taipei, Seoul, San Diego, Buenos Aires, London – May. 2023

Global smartwatch outsourced manufactured shipments increased 15% YoY and accounted for 69% of overall global shipments in H2 2022, according to Counterpoint Research’s latest Global Smartwatch Outsourced Manufacturing Tracker and Report.

Senior Research Analyst Shenghao Bai said, “The YoY increase in outsourced smartwatch shipments in H2 2022 was driven by the strong performance of Indian brands Noise, Fire-Boltt and boAt. The outsourced manufacturers who offered production services for these brands benefited in H2 2022.”

Bai added, “As global smartwatch shipments continue to grow, the contribution of outsourced manufacturing sources has also increased. 69% of global smartwatches were produced by ODM/EMS in H2 2022, compared with 63% in H2 2021.”

Luxshare, Foxconn and COMPAL were the top three outsourced manufacturers in H2 2022. The three players were responsible for half of the global smartwatch outsourced shipments during the period. Luxshare ranked first in H2 2022 as it undertook around 40% of Apple Watch orders. Among Tier-2 players, Huaqin, LINWEAR, I DO and Yawell displayed strong performances in their smartwatch production businesses.

smartwatch outsourced manufacturer H2 2022

Source: Counterpoint Global Smartwatch Outsourced Manufacturing Tracker, H2 2022

Commenting on the performance of the leading players, Senior Research Analyst Ivan Lam said, “The top three manufacturers mainly benefited from Apple Watch orders in H2 2022. Luxshare’s smartwatch shipments were flat compared with that in H2 2021. Foxconn’s shipments in H2 2022 rose due to the orders from Apple, helping the company rank second in terms of shipments. Meanwhile, COMPAL reduced orders from Apple in pursuit of a higher profit margin.”

Lam further added, “In Tier 2, Huaqin’s shipments increased slightly following the company’s partnership with Samsung. Huaqin also continued its cooperation with Huawei, HONOR and OPPO. Manufacturers like LINWEAR, I DO and Yawell increased their shipments by cooperating with multiple brands, especially those from India which mainly focus on the <$50 segment. Yawell received a large share of orders from Noise and Fire-Boltt in Q3 2022.”

ODMs and EMSs have started playing more important roles in the smartwatch industrial chain as the global smartwatch market continues to grow. The share of shipments from outsourced manufacturers is expected to rise to about 70% in 2023 from 68% in 2022 all year. Commenting on the trend, Bai said, “The competition is getting tighter as well. There are increasing requirements for OEMs to be mindful of cost, deliverability and reliability.”



Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

 Analyst Contacts 

Shenghao Bai

Ivan Lam

Counterpoint Research

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Apple’s Device Ecosystem Multiplies its Brand Strength and Stickiness

  • A recent consumer survey from Counterpoint found that nearly 80% of iPhone users who own a smartwatch own an Apple Watch.
  • Over 98% of smartwatch users said they were either “very satisfied” or “somewhat satisfied” with their device.
  • Health and fitness tracking was reported as the most used feature among respondents, followed by notification checking.
  • According to Counterpoint’s Smartwatch Tracker, Apple grabbed 56% of shipments in the US in 2022.

Counterpoint’s most recent consumer survey shows that nearly 80% of smartwatch users who own an iPhone report that they own an Apple Watch. This was the highest share of any brand. Google Pixel users come in second with 71% of Pixel smartphone users who own a smartwatch saying that they own the Google Pixel Watch.

These findings help explain how Apple managed to achieve 56% share of the US smartwatch market in 2022 (according to Counterpoint’s US Smartwatch Tracker). Meanwhile, among Samsung smartphone users who own a smartwatch, only 40% use Samsung Galaxy Watches. Samsung’s struggle to get Galaxy smartphone users to adopt its smartwatches is also clear in Counterpoint’s sell-through data. According to Counterpoint’s Smartwatch Tracker and US Sell-Through by Channel Tracker, Apple sold about one Apple Watch for every three iPhones in Q4 2022, while Samsung sold only one Galaxy Watch for every ten Galaxy smartphones in the US.

Commenting on Apple’s success in the US smartwatch market, Research Analyst Matthew Orf said, “Our consumer research survey supports a general premise of ours – consumers generally purchase their devices as part of a broader ecosystem of devices and operating systems. Apple and iOS dominate the US smartphone market and iPhone users are more likely to adopt other Apple products due to their superior interoperability. With Apple’s smartphone installed base share surpassing 50%, it has a huge potential market to target with Apple Watches, while other smartwatch brands are stuck fighting for the rest of the pie. According to Apple Watch users, the most significant reason for selecting their current smartwatch was that they like the brand.”

US Smartwatch Consumer Survey-Key Insights

US Smartwatch Consumer Survey-Key Insights
Source: Counterpoint Research US Smartwatch Consumer Study, 2023

Source: Counterpoint Research US Smartwatch Consumer Study, 2023

The top three smartwatch features according to respondents are health and activity tracking, notification access, and messaging and calling, with health and activity tracking being most popular among older users and notification checking being more popular among younger users. Popular health and activity tracking features include step counter, sleep tracker, heart rate monitor and blood oxygen monitor. Meanwhile, users are also using their smartwatches for connectivity – interacting with notifications from social media as well as messaging and calling friends, family and coworkers. When asked about their overall experience with their current smartwatch, more than 70% of the respondents using Apple, Samsung, Google and Garmin smartwatches reported being “very satisfied” with their device and 82% stated they wore their smartwatch every day.

Commenting on the high overall level of satisfaction among smartwatch users, Senior Analyst Arushi Chawla said, “It is interesting to note that smartwatch users are overwhelmingly satisfied with their devices. Despite Apple’s gargantuan lead in brand stickiness and its brand popularity, users of other smartwatch brands did not report a significantly lower level of satisfaction with their devices. Sometimes we hear from consumers who do not own a smartwatch that there are no strong use cases for smartwatches, and this hinders adoption. But according to our consumer study, smartwatch users are overwhelmingly satisfied with their devices, citing health and fitness tracking, as well as notification access, as central uses. This suggests that there is room to educate consumers on the benefits of smartwatches in everyday life and further drive the adoption of the form factor. OEMs and component players stand to gain if they can educate consumers on how smartwatches can benefit their daily lives.”

In addition to collecting insights into user satisfaction and smartwatch use, Counterpoint’s consumer survey also investigated how long users have owned their device as well as when they intend to purchase their next device. In total, 59% of respondents had purchased their smartwatch in the past year and only 14% had purchased their device more than two years ago. About 50% of the respondents stated they intended to purchase a new smartwatch within the next year, while only 16% said they intended to purchase their next smartwatch in over two years. This points to a holding period of just over two years for most users. Additionally, 77% of the respondents stated that Apple was the most preferred brand for their next smartwatch. The share of respondents willing to pay $500 or more for their next smartwatch was double the share of those who stated they spent $500 or more on their current smartwatch, suggesting rising ASPs for the segment.

For further details, reach out to Counterpoint Research for the full report on our latest consumer survey. This report features insights into current smart device ownership, smartwatch purchase journey, current smartwatch usage, current smartwatch experience, and future purchase preferences.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Matthew Orf

Arushi Chawla

Follow Counterpoint Research

Related Content:

Global Smartwatch Shipments Market Share Q4 2022

Global Smartwatch Shipments Grow 9% YoY in 2022; Price Polarization Seen in Demand

Smartwatch Market Grows 13% YoY in Q1 2022; Apple Stays First, Samsung Solidifies Second Place

China Smartwatch Shipments Down 8.8% YoY in 2022; Huawei, Apple Dominate Market with Almost 50% Share

Thriving Apple Watch & Apple Health Ecosystem Advancing Digital Intelligent Healthcare

The smartwatch market is enjoying its fastest growth phase at the moment and with only one in ten smartphone users globally sporting a smartwatch , the category is up for grabs. The current landscape is dominated by Apple with Apple Watch and Apple Health, which has pioneered the category.  The focus on design, style and capabilities has made Watch an ultimate device on your body to advance health and fitness goals.

It has been more than eight years since the first Apple Watch launched. With every iteration Apple has added new cutting edge technology and features in the form of advanced bio-sensors, software, algorithms to accurately track heart, respiratory, sensory, mobility-related and other important health and fitness indicators.

Apple released its latest “Health Report” showcasing the research-led innovation it is bringing to the health and fitness segment via its products such as Apple Watch and iOS ecosystem, making it a key driver to digitally transform the healthcare sector.

Apple Watch + Health Ecosystem, a “Gold Standard” in Healthcare Segment

Apple-Health-Key-Features-Heart-Mobility-Timeline-Counterpoint-Research-AnalysiSource: Apple Health Report 2022, Counterpoint analysis

  • With healthcare a highly regulated vertical with a growing volume of sensitive data collected through sensors, analyzed and consumed by the user or medical practitioners, data privacy and security should be foundational for any digital platform.
  • Privacy and security has been at the core of Apple’s platform and also from a positioning perspective. These elements help protect its user base while offering  differentiation from competition and attracting users to its ecosystem.
  • With this at the core, Apple’s work on advanced health apps has progressed well; it is currently based on two key pillars:
    • Empowering users in their personal health journey– centralizing health data in one place, adding new features to track overall health intelligently and integration with third party apps, services and healthcare providers with proper consent and privacy controls
    • Supporting & collaborating with the health and medical ecosystem – working with universities, hospitals, researchers, and governments to be a conduit for physician-patient digital health data, analysis, discovery, tracking and diagnosis along with emergency, safety and healthy lifestyle initiatives
  • Apple has been adding a variety of features to the Apple Watch and Apple Health platform over the years and has certainly taken the Apple Watch capabilities to a level where it closely qualifies as a meaningful healthcare device.
  • While cardiac, heart and sports, fitness, and mobility tracking has been at the core of Apple’s Health platform, the company has also added other meaningful capabilities such as women’s health, sleep health, hearing health, timely reminders on handwashingmedication and mindfulness, among others.

Meaningful Apple Health Platform Capabilities


Source: Apple Health Report 2022, Counterpoint analysis

  • Medical ID is another powerful feature  as the phone and watch becomes the best identity one carries and a critical identity and information tool in emergencies.
  • Further adding gamificationtrend analysis, goals and services such as Fitness+ brings a sense of community and competitiveness for users to be motivated to prioritize fitness and health. These are super sticky features for users and help them remain loyal to the Apple ecosystem.
  • With the integration with third party applications, services via HealthKit leveraging the huge developer ecosystem, Apple has maximized its value proposition for users.
  • Popular services such as HeadspaceCalmNike Run ClubStrava, MyFitnessPalQardioTen Percent Happier, are some great examples of the ecosystem benefits and network effects for the Apple Watch & Health platform.

Apple’s Health Research Partnerships & Science-Led Innovations Catalysing “Digital Intelligent Healthcare”

  • According to Counterpoint’s Model Level Sales & Installed Base Tracker, Apple has a strong base of close to 100 million Apple Watch users and more than 1 billion Apple iPhone users spread out globally, giving a great foundation for the research community to track, analyze and tackle not only global but region-specific health-related challenges at scale.
  • This unprecedented scale and near real-time access to users and their health data, in a very privacy-centric way, has never been available. Apple has removed this major bottleneck with its technology leadership, scale and vision.
  • As a next step, offering innovative tools such as ResearchKit & Apple Research app empowers researchers to advance their research, discover potential patterns and solutions to health problems quickly and efficiently.
  • Apple’s Investigator Support Program is one such initiative to remove any research related hurdles – from seeding Apple Watches to collecting data to integrating data and studies across the globe.
  • Some examples:
    • Apple’s first-of-its-kind Apple Heart Studyto detect irregular heart rhythms
    • Japan’s Keio Universitystudy on heart health
    • Heart Failure Studyat UHN, Canada exploring population-level indicators of heart failure
    • Mom Genes Fight Post-Partum Depressionat UNC to explore a genetic cause to post-partum depression
    • Mount Sinai Warrior Watch Studylooking at the psychological effects of COVID-19 on healthcare workers
    • Digital Mental HealthStudy at UCLA exploring greater insights into anxiety and depression
    • Autism & Beyond study by Duke Universityto better understand and identify risks for development in young children
    • Many third-party apps are leveraging tools such as Apple’s SensorKit and CareKit to innovate on top of the Apple Health platform. Examples are companies such as Butterfly IO+ (portable ultrasound), NightWare System (helping PTSD & trauma patients) and Stryker’s Triton AI (for post-partum care).

Key Health Tools From Apple Enabling Industry Innovation

Apple ResearchKit SensorKit CareKit HealthKit- Counterpoint Research AnalysisSource: Apple Health Report 2022, Counterpoint analysis

Key Takeaways:

  • Apple’s 2022 Health Report highlights that “Rome was not built in a Day” and that it’s health platform cannot be built alone. It has taken Apple almost a decade of innovation and partnerships to reach the current stage, which is still considered nascent. Having said that, no other player has been able to achieve this at scale and with a privacy-led value proposition.
  • Technology companies such as Apple can have a key role in providing the technology empowering the entire ecosystem – users, developers, researchers and the public sector – to build an innovative and research-led digital healthcare platform.
  • Apple has taken the lead to digitally transform the healthcare vertical and other players such as Google have their work cut out for them to build something as robust and with a higher level of privacy and trust.
  • Apple can expand the portfolio of its offerings beyond iPads, iPhones and Apple Watch to drive further healthcare innovation with its design-thinking, research and platform leadership across hospitals, nursing, clinical, patient care and medicine.
  • Technologies such as 5GAugmented Reality and Virtual Reality will play a key role for Apple to build even more pervasive, personal and immersive healthcare experiences
  • Apple also has a greater revenue opportunity in the future to enter the trillion dollar health insurance markets – potentially as part of Apple One or Apple Care+ subscriptions, which would boost its Customer Lifetime Value (CLV). This should be a huge boost to Apple’s top and bottom lines and give further support to its market cap.

Smartwatch Market Grows 13% YoY in Q1 2022; Apple Stays First, Samsung Solidifies Second Place

  • The market grew 13% YoY and continued double-digit growth for the fifth consecutive quarter.
  • Apple maintained its lead, while Samsung solidified its second place.
  • Xiaomi recorded first Top 4 position with 69% YoY growth, and is breaking its shipment record every quarter.

Seoul, Beijing, Boston, London, Toronto, New Delhi, Hong Kong, Taipei – May 31, 2022

The global smartwatch market recorded 13% more shipments compared to the same period last year, despite concerns over economic slowdown and inflation, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker. Despite -24% QoQ due to weak seasonal demand, Xiaomi performed well with it record-highest quarterly shipments.

Associate Director Sujeong Lim said, “Although the global smartwatch market saw little growth in 2020 due to the impact of Covid-19, it has continued to perform well since its rebound last year. In particular, Apple accounted for more than a third of the total shipments last year, and it is further increasing its influence with a market share of 36% in the first quarter of this year. The high brand loyalty of iPhone users is one of the success factors of the Apple Watch. This popularity appears to be higher among the younger generation, making Apple an irreplaceable market leader. Of course, everything was possible because the high performance of the product and the excellent connection among supported iOS devices. We believe that Apple’s market share is likely to rise further by the end of this year.”

Global Top 8 Smartwatch Brands Shipment Share, Q1 2022 vs Q1 2021

Source: Counterpoint Global Smartwatch Model Tracker

Market Summary:

  • Apple maintained a solid lead and increased 14% YoY in Q1 2022. Some shipments carried over to Q1 2022 due to a month late launch of Apple Watch 7, which helped continue the strength of the brand.
  • Samsung solidified second place with 46% YoY increase in shipments. It grew significantly in the APAC region with the popularity of Galaxy Watch 4 series.
  • Huawei remained flat YoY in terms of shipments. Due to the weak position in the international market caused by GMS restrictions, the proportion of the Chinese market in the brand’s total shipments is gradually increasing.
  • Xiaomi recorded its first Top 4 position with 69% YoY growth and is breaking its shipment record every quarter as it rapidly penetrates globally. A large proportion of its sales come from the low-end segment under $100.
  • Garmin ranked fifth in terms of shipments, but came in third in terms of revenues thanks to its higher ASP. It occupies the majority portion in the premium segment over $500.
  • Amazfit maintained its market share by occupying 6th place thanks to the GTR 3 and GTS 3 series that launched in the fourth quarter of 2021. In the meantime, it has been working to expand outside of China and has had some success increasing its presence in Europe.
  • With the China Kids Watch market sluggish at -7% YoY, and as Huawei and Xiaomi expanded their presence in this segment, imoo suffered a double-digit YoY shipment decline.
  • After the merger with Google, Fitbit appears to be undergoing an internal reorganization. As a result, there were no new models released last year, and the transition to Wear OS was delayed, so its sales decreased compared to the same period of the previous year.


Smartwatch Shipment Proportion by Region, Q1 2022 vs Q1 2021

Source: Counterpoint Global Smartwatch Model Tracker, Q1 2022


By region, while most major regions grew YoY, only Europe recorded flat growth. Although Apple and Samsung continued to grow year-over-year, other major brands such as Garmin and Fitbit performed weakly in the European market during this period.

Ms. Lim said, “We initially expected the war between Russia and Ukraine to have minimal impact on the market in Q1, but the prolongation of the conflict and the resulting logistical constraints have begun to affect the European region. The impact of the war will become more serious in Q2”.



Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.


Analyst Contacts:

Sujeong Lim


Neil Shah

Follow Counterpoint Research


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iPhone 13 Helps Apple Break Many December Quarter Records

Apple posted a record December quarter which included record revenues, record installed base, tremendous growth in all business units (exception: supply constrained iPad), and double-digit revenue growth in most regions (Japan the lone region with a decline of 14%). If there was suspicion that the iPhone 13, Apple’s second generation 5G smartphone, would be a weak upgrade, these results squashed this thinking. Counterpoint Research estimates Apple led all competitors, shipping 67.2 million smartphones during Q4 2021.

Details of the quarter:

iPhone: iPhone 13 had a great opening full quarter — a record $71.6 billion in revenues, which was 9% growth over Q4 2020. Additionally, iPhones were supply constrained but less supply constrained than most of its competitors. Apple does an admirable job locking in components by using many customized parts and locking in volumes early — even if it means additional upfront costs. In addition, with large volumes and limited SKUs, it has massive scale to be suppliers’ #1 customer. Apple has even invested in R&D support for some suppliers.

In multiple countries, the iPhone 13 Pro Max was the top seller, bumping Apple ASPs and overall revenues. The elongating life cycles are now baked into Apple sales. There is less of a large year followed by a weaker year. The iPhone holding period has grown — over three years in most regions and almost four years in some regions. This means a more regular upgrade since there is always a substantial part of the base holding an aged iPhone ready to be upgraded.

Apple will likely see good sales longevity of the iPhone 13 family. It will continue to heavily market its camera functionality (for example, Cinematic mode), battery performance, and durability. This will help justify the iPhone’s higher cost relative to most of its Chinese competitors.

Mac: Mac saw the largest percentage growth among Apple business units, growing 25% YoY in Q4 2021. Mac revenues rode the wave of increased PC purchases during COVID-19. Second, its in-house designed M1 chips are now powering the latest Macs and have impressive performance metrics. Finally, Apple has gained PC market share within education and business verticals.

iPad: iPad was the single business unit which saw revenues decline. Revenues declined 14% YoY in Q4 2021. Main reason for the decline was component shortages. Common components between the iPad and iPhone were prioritized for iPhones. Supply constraints for iPad were worse in Q4 than Q3. Pent-up demand within education and business will likely help sales in Q1 and Q2 as component shortages ease.

Apple Watch: Apple Watch and AirPods make up the vast majority of revenues which are lumped into ‘Wearables, Home and Accessories’. The category grew 13% YoY in Q4. Apple Watch continues to gain momentum. Apple Watch will likely continue to see revenue growth as the health and fitness utility continues to improve. Health coach, sleep analysis and heart rate analysis during exercise continue to improve. Apple continues to successfully market health and safety features, such as fall detection and the ECG feature for early detection of irregular heart rhythms.

Services: Apple services hit new highs in Q4 2021, growing 24%. There are over 785 million active service users. Music, video and the app store registered all-time revenue highs. Apple continues to see very low churn to Android and receives very high satisfaction ratings for all of its hardware. The active installed base of Apple devices has eclipsed 1.8 billion – this is a great flywheel for growth within services.

Apple Fitness+ is a unique service. Combined with Apple Watch, it has some interesting synergies for tracking health improvements. With its $203 billion in cash, there are other accompanying fitness hardware companies it could purchase (think Peleton) or develop on its own to increase the utility of Apple Fitness+.

Regions: Apple’s installed base of devices grew in every region. Two years ago, China was a huge problem due to its slowing economy and US-China trade tensions. In Q4 2021, China witnessed 21% growth, highest among all regions. Rest of Asia Pacific grew an impressive 19%. Japan was the lone region which did not see growth — revenues fell 14%. There are a few reasons for the decline in Japan. The main one being the Japanese government’s ban on SIM locking. This has hit operators’ ambition to subsidize iPhones if consumers can freely switch operators.

Outlook: Apple did not give formal guidance for the March quarter. However, the company did comment that its assumption was COVID-19 pandemic would not worsen. In addition, it is expecting solid YoY growth for the March quarter despite some challenging comps due to last year’s lockdowns, which helped companies such as Apple, Netflix and Amazon.

Often successful brands have difficulty keeping the interest of the next generation, which wants to be different. This has not been the case for Apple. It remains an aspirational and ‘hip’ brand to the young. This makes the outlook for Apple, at least medium-term, very promising.

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Huawei Watch 3 Review: Gorgeous Display, Fluid UI & Reliable Fitness Tracker

With the downfall of Huawei in the smartphone segment, the company had been focusing on other segments for growth and sustenance, with IoT being a key focus area. Huawei was one of the top three smartwatch vendors in H1 2020, but it could not sustain the growth and was the only brand among the top five to see a decline by H1 2021. But this decline hasn’t stopped the Chinese giant from innovating and launching new products. The launch of the Mate 40 and P50 series, Freebuds 4 TWS, foldables, and smartwatches among other devices, shows its resilience. In June 2021, the company launched Huawei Watch 3 and Watch 3 Pro models which were the first ones to ship with HarmonyOS 2.0.

With a price of £349.99 (roughly $500/€400), the Huawei Watch 3 brings a stylish new design, health-focused features, eSIM connectivity, and much more. Under the hood, HarmonyOS 2.0 aims to bring a more fluid experience over Huawei’s earlier LiteOS, while also competing with Google’s WearOS and Apple’s watchOS. But has Huawei succeeded? Here is my long-term review of the Huawei Watch 3 after using it for close to six months.

Huawei Watch 3: Premium Design, Sturdy Build & A Great Display

  • 1.43-inch AMOLED screen, 46.2mm case.
  • Features stainless steel and ceramic materials.
  • 3D rotating crown with side button.

With the Watch 3, Huawei hasn’t changed the design philosophy and continues with the circular design from the Watch GT series. Huawei has moved to use high-quality materials, where you get stainless steel case and ceramic back, which not only gives it a premium look and feel but also offers a sturdy build. The black color model which I am reviewing looks classy and goes well with both formals and casuals. Also, the display glass is nicely curved around the edges with a piano black finish, which further adds to its look and feel.

counterpoint huawei watch 3 review back

A digital crown on the right is a good addition. A single press opens the app launcher, whereas rotating the crown lets you scroll through the screen, UI, and notifications. The experience is pretty good, especially with the haptic feedback that you get as you rotate the crown. Below the crown is a physical button that works as a shortcut for workout modes.

counterpoint huawei watch 3 review crown

Upfront, the Huawei Watch 3 flaunts a 1.43-inch circular AMOLED screen with a resolution of 466×466 pixels. The screen is bright, vivid, and exceptionally sharp. It delivers accurate colors and deep blacks that make everything from widgets, watch faces, and the interface look great. It is also adequately bright offering great visibility indoors and outdoors. The Watch 3 also features 5 ATM water resistance allowing you to wear it in the rain, shower, or even in a swimming pool.

counterpoint huawei watch 3 review comfortable to wear

HarmonyOS 2.0: More Refined, But Still a Work-in-Progress

  • HarmonyOS 2.0 is good, but the app-gap issue exists.
  • Compatible with Android, and iOS with limited functionality.
  • Wi-Fi and eSIM connectivity.
  • Celia assistant (limited availability).

The Huawei Watch 3 is the first smartwatch to ship with HarmonyOS 2.0. Since its launch, Huawei has consistently rolled out monthly updates which not only added new features but also refined performance and fixed a lot of bugs. In terms of compatibility, the smartwatch can be paired with both Android and iOS devices. But for the best experience, Huawei recommends using it with their smartphones.

counterpoint huawei watch 3 review app interface options

I tested the Huawei Watch 3 with three different devices – Galaxy S21 Ultra, Galaxy Z Fold 3, and iPhone 12. Experience with Android phones was better than the iPhone, which was very restricted. Nearly all features work with Android phones, except for things like a camera remote shutter where you can see a preview of the smartphone camera viewfinder on the smartwatch before clicking a photo.

counterpoint huawei watch 3 review app grid


The default app interface is inspired by Apple Watch’s honeycomb grid one, but you can also switch to list view if you prefer. The UI is slick, and the app icons look refreshing too. One area where Huawei is lagging is the app ecosystem. The AppGallery has a very limited number of apps, most of which you may not even end up using. Having at least the most popular ones like Strava, Spotify, and MyFitnessPal type apps would be useful. There is also no easy way to sync fitness data with Google Fit (or other fitness tracking apps), which is most likely because of the lack of GMS in the Huawei ecosystem.

counterpoint huawei watch 3 review appgallery

Navigating through the UI is simple. A swipe from top to the bottom brings up Quick Settings toggles for Do Not Disturb, Sound profiles, Settings, Airplane mode, and more. A swipe from left to right reveals a weather widget and quick controls for music playback. Swiping from right to left reveals widgets for health, continuous heart rate and SpO2 monitoring, skin temperature, and more. And lastly, swiping up from the bottom reveals notifications.

Wi-Fi connectivity and eSIM compatibility are other features that make the Huawei Watch 3 a good proposition over most competitor smartwatches. Wi-Fi comes in handy when moving around the house. Even if the smartphone is in the bedroom and you are in the living room or kitchen, out of Bluetooth range, the Watch 3 connects to the home Wi-Fi network so that you continue getting notifications without any interruption. Talking about eSIM (4G LTE) connectivity, it is limited to certain regions such as China, so I was not able to test it here in India.

Counterpoint Research senior analyst Sujeong Lim who tracks the global smartwatch market said “Smartwatch OEMs are still in the process of finding ways to provide users with a better user experience and use case. The Apple Watch is excellent in many ways, but it has its own shortcomings in terms of short battery life and OS compatibility. On the other hand, Amazfit’s GTS and GTR lines have a long battery life of about one week, but they do not support third-party apps, so their usability and functionality are limited.

After using the Huawei Watch GT2 Pro, I found that the Huawei smartwatch was well-balanced, neither more nor, less, in most ways. In addition, the front display using sapphire glass was more robust and luxurious than any other smartwatches. Therefore, I believe that Huawei smartwatches themselves are competitive and have great growth potential, but the lack of GMS and popular third-party apps even on HarmonyOS 2.0, will likely hamper growth in markets outside of China.”

A Reliable Fitness Tracker in Smartwatch Form Factor

  • Over 100 workout modes with automatic detection.
  • Handwash detection, SpO2 monitoring, sleep monitoring.
  • Fall detection and SOS alert feature.

The Huawei Watch 3 is more of a fitness tracker first, and smartwatch later. It comes with over 17 professional workout modes such as basic walk and run modes, fat-burning run, and aerobic endurance run among others. Each of these modes, for instance, basic walk, has pre-defined time and phases, such as alternate speed walk for 3 minutes and jog for two minutes for 22 minutes.

counterpoint huawei watch 3 review fitness

Then there are outdoor and indoor runs, cycling, and walk modes where you can pre-define a goal, seven-kilometer cycling, or five-kilometer walk for instance. You can also pre-define time for how long you want to walk or set the number of calories you want to burn during the walk.

Similarly, in the case of swimming, there are two modes to choose from – open water and pool swim. For open water swimming, you can set goals like distance, time and calories burned. And in the case of pool swim, laps, time, or calories.

In terms of accuracy, I compared it with the Apple Watch Series 6, and the readings were similar. For heart rate reading, there was a difference of 3-4 beats per minute max, which I think is good enough. Even for a pedometer, the Apple Watch had a step count of 1136 steps whereas the Huawei Watch 3 logged 1116 steps, which again isn’t a big difference. I also wore both watches while cycling and the GPS distance logged by both barely had a difference of 144 meters, which could be the result of factors like GPS reception, but the reading was more or less similar, thus, offering performance and accuracy closer to the Apple Watch series.

counterpoint huawei watch 3 review cycling

Lastly, given the prolonged COVID-19 scenario around, Huawei has added a couple of handy features that make the Watch 3 an interesting proposition. These features include SpO2 and skin temperature measurements, allowing you to keep track of your vitals. I compared the reading taken by the watch with a pulse-oximeter available over the counter and there was barely any difference in both readings, making the Watch 3 reliable again.

counterpoint huawei watch 3 review sleep and steps

There are other features like handwash detection, fall detection (which I could not test), and sleep tracking as well. When you are sleeping, the Watch 3 can track different parameters like your bed time and rise (wake-up) time, along with other details like deep sleep, light sleep, awake time, breathing quality, and awake times.

Good Battery Life, But Not as Great as Previous Huawei Smartwatches

  • On normal usage, the battery lasts up to three days on a full charge.
  • Ultra-long Battery Life mode offers close to eight days on a full charge.
  • Reverse charging to charge the smartwatch using compatible wireless charging enabled smartphones.

The biggest highlight of the previous Huawei Watch smartwatches has been the multi-week battery life. When my colleague reviewed the Huawei Watch GT2 Porsche Design smartwatch, he was left impressed as the battery lasted nearly two weeks on a single charge. Unfortunately, the same isn’t the case with the Huawei Watch 3 running HarmonyOS 2.0.

One observation over the years has been that the smartwatches powered by high-level OS do not offer a great battery life. While the Apple Watch battery can barely make it through a day, the Samsung smartwatches with Tizen OS have enough juice to last two or three days. The Huawei Watch 3 offers a similar battery backup for about three days, and sometimes even four, when there are not too many notifications popping in (on weekends). But if you do a lot of fitness activities like running, cycling, outdoor walks, and more, the battery will drain faster.

counterpoint huawei watch 3 review battery

Huawei has also included an ultra-long battery life mode, which turns off Wi-Fi and cellular networks, while also restricting access to some features. With this mode turned on, the battery lasted for a little over a week. Talking about restrictions, you will continue getting notifications from apps like Messages and Telegram, but there is no option for replying.

Unlike the competitor smartwatch platforms that fully restrict most functions in power-saver mode, it is good to see that the Huawei Watch 3 offers access to key features. These include a bunch of watch faces, continuous heart rate monitoring, SpO2, and skin temperature measurement. Along with these, you do get access to workout modes like indoor and outdoor walk, running, cycling, and swimming among others. And GPS also gets activated during these activities to track your route. This is a nice differentiation over the competition.

On-board Storage for Listening to Offline Music During Workouts

The Huawei Watch 3 comes with 16GB internal storage to store your music, apps, watch faces, and more. Out of the total space, around 9.5GB is available while the rest is taken by the OS and default apps. Now, while you can transfer songs to the watch for offline listening, it only works when paired with an Android smartphone. Transferring can be done via the Huawei Health app where the songs need to be present on your smartphone, and you need to connect it with Huawei ID. But do note, as it will be transferred via Bluetooth, it takes a bit of time.

counterpoint huawei watch 3 review music

To give you a rough idea, it took five minutes to send two MP3 tracks with a total size of 21MB. So, if you are transferring your entire music library, it may take hours. Ideally, it would be better to transfer 10-15 songs each day, if your library had about 100 or more songs. You can then connect your TWS to the smartwatch, go on a run and listen to your favorite songs without having to carry your smartphone along. There is also Huawei Music built-in the watch, allowing you to stream online music from the library, provided you have a Wi-Fi or eSIM connection enabled.

Huawei Watch 3 Review – Key Takeaways:

  • The Huawei Watch 3 is a sleek and neat-looking smartwatch with reliable and accurate fitness tracking capabilities.
  • It features impressive monitoring tools such as skin temperature measurement, SpO2, sleep tracking, and fall detection to name a few.
  • Lots of interesting watch faces and compilations to choose from, giving a more personalized touch to the experience.
  • The choice of comprehensive workout modes that Huawei is offering is impressive, complete with guided and animated instructions.
  • While the hardware is impressive, HarmonyOS 2.0 is still a work-in-progress with a lot of room for improvement.
  • The lack of third-party apps on AppGallery is a concern, and having apps like Strava for running and cycling, and Spotify for music streaming would greatly benefit the ecosystem.

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Smartwatch Market Grows 27% YoY in Q2 2021; Apple Watch User Base Crosses 100 Million

  • The market grew a healthy 27% YoY, thanks to strong demand for sub-$100 smartwatches.
  • Samsung and Garmin posted remarkable YoY growth even as Apple maintained its lead.
  • Rapid growth expected in India’s market with the rise of local brands such as Boat and Noise.

Boston, Beijing, Toronto, London, New Delhi, Hong Kong, Taipei, Seoul – August 26, 2021

Showing a full recovery from COVID-19, global smartwatch shipments in the second quarter of this year increased 27% compared to the same period last year, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker.

Apple maintained its solid No. 1 position in terms of shipments, but its market share declined slightly compared to the same period last year due to intensifying competition with Chinese and Indian brands. Among the global Top 5 smartwatch OEMs, Samsung and Garmin showed a remarkable shipment growth of 43% and 62% YoY, respectively, exceeding the average market growth rate and recording higher growth rates than other top brands.

Thanks to the steady popularity of the Galaxy Watch 3 and Watch Active 2, Samsung showed a quick recovery from last year’s somewhat sluggish performance. Garmin recorded its highest shipments ever during the quarter. Among the Top 5 brands, only Huawei fell compared to the same period last year. The decline in its smartphone business seems to have affected its smartwatch sales, as the smartwatch from such a vertical player is tightly optimized with the brand’s smartphones and the users’ loyalty to the brand’s ecosystem of offerings.

Shipments of Global Top 5 Smartwatch OEMs: Q2 2021 vs Q2 2020


Counterpoint Research Shipments of Global Top 5 Smartwatch OEMs Q2 2021 vs Q2 2020

Source: Counterpoint’s Global Smartwatch Shipments Tracker, Q2 2021

Apple Watch active user base crosses 100 million; sub-$100 segment grows 547% YoY

Commenting on the smartwatch market outlook, Senior Analyst Sujeong Lim said, “The smartwatch attach-rates for smartphones have been steadily rising. Apple’s ecosystem is seeing a greater attach rate as the brand continues to bake in attractive designs, health features and related services around it. Apple Watch’s user base crossed the 100-million mark for the first time during the quarter ended June, capturing the lion’s share of the smartwatch user base globally. The US continues to be the key Apple Watch market, contributing to more than half of its user base, with an attach rate of close to 30%.”

Lim added, “Looking at the success of Apple Watch, more OEMs have entered the smartwatch market with a relatively less advanced OS but comparable fitness and health-related features, and stylish designs at affordable prices targeting hundreds of millions of potential users globally. The pandemic has further pushed consumers towards being more health-conscious and features such as SPO2 and heart rate monitoring have trickled down to the sub-$100 smartwatch segment. The sub-$100 smartwatch segment grew a massive 547% annually, highlighting its mass-market reach.”

North America largest, India fastest growing market

China, the second largest market after North America, grew in terms of volume but its growth rate was somewhat lower than that of other regions, and its share by region decreased. As seen in the smartphone market, the recovery of consumer spending here after the pandemic has been slower than in other regions. Also, the space vacated by HuaweiHONOR in China is yet to be filled.

Commenting on high growth markets, Senior Analyst Anshika Jain said, “India was the smallest market in the second quarter of last year, accounting for less than 2% of the total market, but its share increased to 6% in just one year. The proliferation of sub-$100 affordable, feature-rich smartwatches from Chinese brands such as Xiaomi, realme and OPPO, and Indian brands such as boAt and Noise has been one of the key growth drivers.”

Source: Counterpoint’s Global Smartwatch Shipments Tracker, Q2 2021.

Top-selling Smartwatches Globally, Q2 2021


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Sujeong Lim

Anshika Jain


Neil Shah


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Q2 2021: Apple Updates

Apple Marches Forward With Record FY Q3 2021 iPhone Sales

July 27, 2021

Apple continues to break records for iPhone sales, with FY Q3 2021 expected to be another banner quarter.  According to Counterpoint Research’s Monthly Market Pulse Model Sales, July 2021 Edition, iPhone sales for Apple’s FY third quarter will come in at 49.6m units. Q3 sales saw continued strong demand for the iPhone 12 series, and to a lesser extent the iPhone 11, which continued to surprise with its longevity.

Source:  Counterpoint Monthly Market Pulse, July 2021

According to Counterpoint’s North America Research Director Jeff Fieldhack, “iPhone sales did really well during the quarter for a number of reasons. First, the iPhone 12 saw a late launch so we’re actually a month behind in the cycle. Second, we’re seeing really strong performance in the US, which is coming from a combination of aggressive subsidies from carriers trying to secure new postpaid 5G subs with the 12, and prepaid players offering up attractive iPhone 11 promotions. Third, China again delivered, with its share of sales continuing to increase month over month.”

Apple has supported its sales efforts with strong supply chain management, avoiding issues from component shortages. Dale Gai, Research Director of Counterpoint’s Semiconductor and Components team, commented, “Apple is well protected from the component crunch as it has very strong relationships with its suppliers. Everyone wants a piece of the Apple pie, but to get a seat at the table you have to be able to deliver, hence, iPhone supply will always take priority.”

With demand and supply aligned once again, Jeff Fieldhack is calling for another Apple beat this quarter. “In terms of iPhone shipments, we’re actually ahead compared to some of the more bullish Wall Street analysts. FY Q1 – Q3 2021, we’re at 187m units, which means that a good Q4 will result in full year iPhone shipments in the range of 131m to 136m units.” Tempering his bullish comments Mr. Fieldhack concedes, “There are clearly risks we have not seen in the past. The Delta variant is obviously something we’re keeping an eye on, and we’ll continue to assess data coming from the supply chain. But for now, Apple is managing all fronts well and if there are any surprises this year, my bet is it will be to the upside.”

Apple Takes the Cake with Latest Results

April 28, 2021

Apple had a record-setting quarter with the highest revenues and earnings ever during the Jan-Mar period. All product segments saw record revenue highs. The Mac had an all-time record revenue quarter. All product segments hit record installed bases.

Keys takeaways from the quarter:

  • iPhone revenues were up a whopping 66%. Our Global Model Sales Tracker shows record high market share in the US and China. The iPhone 12 family is a tremendous success and it maintained momentum through the quarter. Only in March did supply meet demand.
  • Our numbers show record high iPhone ASPs. This is on the strength of the iPhone 12 family and in particular the iPhone Pro Max—a top seller in the US market. Globally, the higher priced Pro Max and Pro models accounted for over half of all iPhone 12 series devices sold.
Counterpoint Research Global Apple iPhone 12 Series Sales Share Breakdown
Source: Counterpoint Research Q1 2021 Global Mobile Sales Tracker

*Preliminary numbers for Q1.

  • All segment growth. iPad and Mac revenues increased 79% and 70% year-over-year. Of course, the pandemic caused work-from-home and school-from-home tailwinds. The school-from-home requirements will eventually return to in-school learning. However, the education installed base has dramatically increased. On the work-from-home side, there will be a high percentage of companies offering a continuation or part-time work-from-home scenario. This will not give iPad and Mac the bump it saw during the pandemic, but it will be higher than pre-COVID. In addition, the in-house M1 engine is impressive and helping with both upgrades and pulling in new consumers. Two-thirds of iPads purchasers were new to iPad.
Counterpoint Research Apple Net Sales by Category
Source:  Apple, quarter ending March.
  • Wearables saw double digit growth. Apple Watch Series 6 and Apple Watch SE had large quarters. 75% of sales were first-time buyers and new health apps and health services helped with stickiness of the hardware.
  • Services grew 27% year-over-year. Apple added 40mn paying subscribers sequentially and 140mn annually. There are now 660mn paying subscribers. Counterpoint Research believes Apple TV+ saw high growth.
Counterpoint Research Apple Net Sales, Products vs. Services
Source: Apple, quarter ending March.
  • As many OEMs struggle with margins, Apple saw a blended gross margin of 42.5%. 36% for hardware products and over 70% for services.
  • Regional growth across the board. Rarely do all regions see growth in an individual quarter. All regions saw tremendous growth with Americas being the smallest growth at an admirable 35%.

Counterpoint Research Apple Net Sales by Reportable Segment

  • Recently announced AirTags will give some incremental revenues in coming quarters—especially Q4 2021.
  • Apple is also being hit by chip shortages. It warned that chip shortages will reduce the June quarter’s revenues by $3 billion to $4 billion, mainly within the Mac and iPad lineup. Because of the uncertainty of the chip shortage, Apple did not give revenue guidance for the June quarter.
  • In 2019, there was a lot of angst about the China market. The latest March quarter allays those concerns with China revenues growing 88% on strong iPhone, iPad and Mac sales.
  • Apple has some nice corporate boasts. This is timely as there is political pressure on many technology names (Google, Amazon, Facebook etc):
    • The new OS update will give users options to opt out of app tracking.
    • Over $200 million in new, green investments are being made.
    • The company is investing $430 billion and creating 20,000 new jobs in the US.
    • Although there has been some controversy on the Google-Apple COVID contact tracing tech, it has been rolled out in some states. There are also useful vaccine and test tracking apps.
    • More on these brags here.

The outlook for 2021 remains strong for iPhones as more countries and regions roll out 5G. iPad, Mac, TWS, and wearables all have good outlooks. With the growing installed base of Apple products, services will also see solid growth in 2021.

Apple’s October – November iPhone Sales Signal Record Quarter and 2021

December 23, 2020

Apple is likely to break previous iPhone sales records during its FY first quarter, according to Counterpoint Research’s Global Monthly Sell-Through Tracker, setting up the company for what could be the biggest year ever for the iPhone.

Although Oct-Nov 2020 global sell-through was down YoY, it declined by only low single digits. That is positive considering the four to six-week launch delay of the iPhone 12 versus the iPhone 11. There is now the possibility of a December sales surge, driven by the new iPhone 12, which would bring the quarter’s sell-through number into record territory.

Apple iPhone sales - iPhone 12 vs iPhone 11 - US launch sales performance
Source: Counterpoint Research, Weekly Sales Tracker, USA

 The popularity of the new model is evident when comparing iPhone 12 and iPhone 11 post-launch sales in the US market on a YoY, week-for-week basis.

Jeff Fieldhack, Counterpoint Research’s Director of US Mobile Devices and Carrier Strategies, commented, “The iPhone 12 consistently outperformed its predecessor during the first six weeks from launch – with the exception of week two, when strong early demand and ample supply delivered an exceptional sales week for the iPhone 11.”

He also noted, “Double and triple-digit weekly sales increases for the iPhone 12 over the iPhone 11 – despite 12 Pro and 12 Pro Max shortages – is sending a strong signal, and we believe the iPhone 12 will bolster global quarterly shipment growth for all iPhones to 21% YoY.”

US out-performance bodes well globally, and Counterpoint Research expects record iPhone shipments for the quarter to be driven not only by North America, but also China, Japan, India and Europe.

“What we’re seeing is a combination of things driving iPhone growth globally,” stated Peter Richardson, Global Head of Research. “These include pent up demand for a new 5G iPhone with both operators and consumers hungry for the new iPhone products, attractive prices on the iPhone 12 aided by bountiful promotional offers. iPhone SE sales also helped momentum together with iPhone 11 longevity, and solid Singles Day, Black Friday and Cyber Monday performance.”

Acknowledging that Apple faces issues, especially around supply, Mr. Richardson stated the company “is well positioned to mitigate the risks. The iPhone Pro and Pro Max are on backorder in the US, but lead times have dropped significantly over the past three weeks. Power management ICs remain constrained, but Apple is likely a favored customer going to the head of the line. The India Wistron controversy is not material and Apple is managing the situation. And in terms of their output capability globally, it is better than last year on increased hiring, overtime incentives and factories running more hours.”

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