Timeless Rivals: 10 Years of Apple Watch Dominance – Can Rolex and Huawei Catch Up
Apple Watch Creates Smartwatch Market with Health Features
Apple Inc. released the new model “Series 10” of the watch type terminal “Apple Watch” in the United States on September 20. It is 10 years since the launch of the first generation. Although the smart watch market has been created with health functions as the center, sales are still not as high as those of high-end watch manufacturers such as Rolex of Switzerland, and there are emerging forces in China and India still up.
“Every year, some features are added that are considered impossible to implement on small devices.” Apple held a special event at its headquarters in California, USA, on September 10. Apple’s Chief Executive Officer (CEO) Cook has identified the Apple Watch as the flagship product of the new “iPhone” smartphone series.
Series 10 adds the function of detecting the symptoms of “sleep apnea syndrome” where breathing is interrupted during sleep. The built-in accelerometer detects breathing disorders during sleep, analyzes the data and notifies the user. It is planned to be available in more than 150 countries and regions including Japan, the United States and Europe.
Compared to previous models, while expanding the screen display area, the body is about 10% thinner and lighter. The charging time is shortened and can be charged to about 80% in 30 minutes. The price is unchanged at $399.
Apple Watch Market Share is More Than 10%
Apple Watch was rated as the “most personal device” when it was released in 2014, adding unique features to smartwatches such as payment and measuring calorie consumption. Later, as the functions were improved, sensors were added to support electrocardiogram applications, fall and collision detection, etc.
Statistics from British research firm Euromonitor International show that Apple’s share of global watch sales (including pocket watches, based on value) will be 10.4% in 2023, almost double compared to 5.5% in 2018. However, it still lags behind Swiss watch manufacturers such as the Swatch Group, which is in first place (11.9% market share) and Rolex, which is second (market share 10.7%).
The biggest reason is the price of the unit. Swiss manufacturers have an advantage in high-end mechanical watches made with the help of traditional techniques as artisans. Scarcity increases resale value among enthusiasts, and popular models trade for high prices on the second-hand market.
Japanese watch companies are also taking the high-end route. At the new product exhibition held by Citizen Timepiece Co, Ltd in Tokyo on September 4, about 60% of the products were more than 100,000 yen. Citizen said: “There is a trend that consumers who are tired of the black screen of smart watches are choosing watches with a design when replacing their watches.”
Smartwatch Market Growth Reaches Tipping Point
There are also shadows on the growth of the smart watch market. Data from Hong Kong research firm Counterpoint shows shipments between April and June 2024 have fallen by 9% compared to the same period last year. Due to the lack of new features to promote user upgrades, the company’s Sujeong Lim believes that “negative growth is likely to occur throughout 2024.”
Apple also has inherent problems. In the legal case regarding the new function of measuring the concentration of oxygen in the blood, it was found to be in violation of a patent, and two products including the “Series 9” launched in 2023 were prevented from selling in the United States. Apple’s global share of the smart watch market will be 26% in 2023, down 2 percentage points from 2018.
At the same time, emerging powers in China and India are on the rise. Huawei China Technologies and Fire Boltt India both have a 9% global market share in 2023 (calculated by sales volume), second only to Apple. Both companies have used low prices as their advantage to increase their market share, focusing on their home countries.
Lei of Huawei’s Japanese subsidiary said, “Sports and health functions are key areas.” The main model “HUAWEI WATCH GT4” (price starting at 32,780 yen) can display maps of more than 2,200 Japanese golf courses on the screen, and has the function of measuring the distance to the touch point.
Like smartphones, what is expected to be the trump card in driving the demand for smartwatches are productive AI (artificial intelligence) functions. Counterpoint’s Sujeong Lim pointed out that AI functions that can provide personalized services “may become the driving force behind the purchase of a smartwatch.” The AI services and functional connections that Apple will first launch in the United States within this year will affect Apple Watch sales.
Nihon Keizai Shimbun (Chinese version: Nikkei Chinese website) Ryosuke Eguchi, Shuhei Yuzawa, Noriyoshi Taguchi