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Wednesday, June 11, 2014
Samsung and Pebble Dominate The Smartwatch Market, At least For Now

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 market data released by NPD.

Revenues from the smartwatch market totaled $96 million since October, NPD says. 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.

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.

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