PORT WASHINGTON, NEW YORK, JUNE 11, 2014 –Almost half a million smartwatches have been sold in the U.S. since October 2013 and category incumbents, Samsung and Pebble, dominate the market. According to NPD’s Weekly Tracking Service*, revenues from the smartwatch market totaled $96 million since October. Sales of the Samsung Gear account for 78 percent of total revenue in the market while Pebble holds an 18 percent revenue share. A third of all smartwatch units to date were sold during the 2013 holiday season.
“The smartwatch market is poised to continue to grow in 2014” said Ben Arnold, executive director of industry analysis at NPD. “With nearly $100 million in US sales in less than a year, the category is off to a promising start with just two major brands."
According to NPD’s Wearable Technology Study, 20 percent of consumers say they are interested in purchasing a smartwatch, with younger consumers expressing the most interest. Among 16-24 year olds 30 percent said they were interested in buying a smartwatch, while a quarter of 25-34 year olds reported interest. One thing that resonates across all age groups is price. Among those likely to buy a smartwatch, cost was cited as the number one barrier to adoption.
Since October, promotions and the introduction of new smartwatches have caused average prices to fluctuate, reaching as high as $257 and dropping to a low of $160. Primarily driven by Samsung’s bundling the Gear with purchases of their Note and Galaxy smartphones, the average price of a smartwatch is now $189 according to NPD’s Weekly Tracking Service.
“We’ve seen smartwatches become more affordable as manufacturers eye the opportunity to add them to smartphone purchases almost as an accessory” said Arnold. “Like any new product category, the overall ASP on these devices will decline as the market becomes more diverse with budget, mid-level, and premium product offerings.
* NPD’s weekly POS information is derived from a subset panel of retailers that also contribute to NPD’s projected monthly POS panel. The data includes sales from October 6, 2013- May 25, 2014.
Learn more about the global wearables market.