The popularity of Cupertino’s wearable could see the Apple Watch representing a sizeable chunk of "premium watch" sales in just a few years time, according to a recent report.
Premium watches, defined as wristwatches which cost a minimum of $350, are a category which all of Apple’s aluminum, stainless steel, and gold wearables fall into. If a new report from BI Intelligence has it right, by 2020, the Apple Watch could account for 40 percent of this market.
The report explains:
By 2020, Apple Watch shipments will be equivalent to about two-fifths of the luxury-watch market. Assuming a lower-bound price of $350 for the luxury-watch category, and including Apple Watch in that category, traditional wristwatches would account for ~60% of total shipments in 2020, while Apple Watch would account for ~40%.
Interestingly, BI Intelligence’s report also notes that the Apple Watch is appealing to folks who already own a wristwatch. Previously, it had been suggested that consumers with mechanical (read: traditional) wristwatches would perhaps not be interested in purchasing one of Cupertino’s smart watches. Yet BI Intelligence’s report indicates that this, in fact, is not the case.
A significant 27% of respondents interested in the Apple Watch said they already wear a watch and that the added functionality of a connected watch appeals to them.
Aside from focusing on the Apple Watch, BI Intelligence did share its prediction for the entire wearables market, at large. According to the report, the wearables market is going to continue to grow, yet smart watches (like the Apple Watch) are expected to move ahead of fitness bands, like Jawbone’s UP and Fitbit’s range of devices.
You can read the full report by clicking this link.