Apple Watch Is So Dominant It Shifted The Entire Smartwatch Market With One New Product
© Oliver Haslam / Null futureAccording to a new report, the launch of the Apple Watch Ultra in 2022 had a significant impact on the average selling price of the entire smartwatch market.
While Apple didn't release the Apple Watch Ultra until Q4 2022, it had plenty of time to ramp up sales in the smartwatch segment, including wearables priced above $400.
According to the report, sales of smartwatches over $400 are up 129% year-over-year. The only other price point that rose in 2021 was at the opposite end of the spectrum. Smartwatches under $100 have also proliferated.
The Apple Watch Ultra costs $799 and is nearly double the price of the base Apple Watch Series 8. It's considered the best Apple Watch you can buy right now, which helps with its price. But it's in its market, given the relatively high price. And the entry due to that price block has brought about a big shift in the market.
Counterpoint Research analyst Woojin So believes that "Apple was a significant contributor to the growth in the average selling price (ASP) of the global smartwatch market in 2022, particularly in the price range above $400." The Apple Watch Ultra is still speculated to be one reason, but there's another one to consider.
"There are two main reasons for this increase in ASP: Apple's diverse lineup of smartwatches and rising exchange rates," the analyst said. “Apple introduced its first Ultra model this year, priced at $799 in the US. Also, the local price of the Apple Watch varied in different countries as exchange rates increased.”
Undoubtedly, the price of the Apple Watch Ultra is the main reason for the sharp increase in sales of smartwatches exceeding $400. All eyes will now be on Apple to see what it does to continue this trend.
