Smartwatches are an important product category in their own right and also a barometer for a complete picture of the active breadth of technology ecosystems. Smartwatches, primarily from Apple or using the Android environment, form a sizable market share, in active use by one-ninth to one-fourth of online adults in the US, Germany, the UK, and Japan. Gen Z and millennial adults are leading their use. The Boomer/Silent generations have a small but quickly growing share. Looking ahead, purchase plans are not substantial, although they describe a reasonable replacement market.
This MetaFAQs reports on the market penetration of smartwatches, split by generational age group, Apple and Android, and country. Report [TUP_doc_2023_1218_wret] in TUP Lenses: Consumer Electronics; Technology Ecosystems; Wearables, Hearables, Listening, and Speaking
Peak smartwatch? Time for a strategy shift
Smartwatches have quickly gained popularity, gracing the wrists of millions. These devices offer more than just timekeeping and fitness monitoring; they’ve evolved into personal assistants. Users value their multi-functionality, utilizing them for calendars, health metrics, reminders, and more. In addition, they’ve become a symbol of modern luxury. However, the latest wave of TUP confirms that the smartwatch market penetration seems to have reached a peak or plateau. Now, it’s largely about replacing older models rather than attracting first-time users. Therefore, manufacturers need to adapt their strategies, focusing less on expanding their user base and more on meeting the needs of existing customers.
These TUP tables report on the number and percentage of online adults regularly using a smartwatch such as an Apple Watch. They also include the number who are planning to purchase one within the coming 12 months.
Replacement versus growth markets
The dynamics of replacement markets are very different from those dominated by 1st-time buyers or others that primarily include users holding onto their technology. Each technology product is in its unique phase of adoption, with very different positions for smartphones, computers, tablets, and smartwatches.
This TUPdate details consumers’ purchase intentions in the US, Germany, the UK, and Japan. The products analyzed include computers, tablets, smartwatches, printers, and others. For each product category, the analysis splits users into four categories: replacing or adding to what they have, 1st-time buyers, those actively using the technology without plans to update it, and the uninvolved.
Apple active installed base by country and age
Apple is the envy of many technology companies, primarily for their active installed base of loyal customers. While Apple’s highest penetration is with the iPhone, there is a solid overlap with Macs, iPads, and Apple Watch.
This MetaFAQs reports on the depth of Apple’s customer loyalty as measured by the collection of Apple products they use – iPhones, iPads, and Macs. It reports on the percentage of online adults in the US, the UK, Germany, and Japan that use any of Apple’s key devices and which ones they actively use. It further splits Apple’s installed base by age group, reporting on penetration and the average number of devices used.
Replacement versus growth markets
The dynamics of replacement markets are very different from those dominated by 1st-time buyers or others that primarily include users holding onto their technology. Each technology product is in its unique phase of adoption, with very different positions for smartphones, computers, tablets, and smartwatches.
This TUPdate details consumers’ purchase intentions in the US, Germany, the UK, and Japan. The products analyzed include computers, tablets, smartwatches, printers, and others. For each product category, the analysis splits users into four categories: replacing or adding to what they have, 1st-time buyers, those actively using the technology without plans to update it, and the uninvolved.
Smartwatch usage & plans by socioeconomic groups
Among Americans, active smartwatch usage has shifted towards traditionally disadvantaged sociodemographic groups and away from those traditionally advantaged. Overall, age is a prominent factor affecting smartwatch usage, with younger Americans having the highest active usage rates. There has been a flattening of the usage profile, with market growth among the youngest and oldest Americans. The smartwatch market is currently a replacement market, with 45% of active smartwatch users having purchase plans versus 14% of those not using a smartwatch. Consequently, the profile of smartwatch users is unlikely to change in the coming year.
This MetaFAQs looks at the five-year profile of American adults who actively use a smartwatch along several lines: the socioeconomic group they are part of, their life stage, employment status, and age. It also profiles those planning to purchase a smartwatch in the next 12 months.
Apple Watch usage & plans by socioeconomic groups
Apple Watch usage grew during the pandemic only to shrink below pre-pandemic levels. The shape and composition of the active Apple Watch user base favors younger employed Americans. From 2018 to 2022, active usage dropped overall among historically advantaged groups and rose among those historically disadvantaged. Three historically disadvantaged sociodemographic groups – younger Black, Hispanic, and multi-racial adults – stand out for having higher than average and growing usage.
This TUPdate looks at the five-year profile of American adults who actively use an Apple Watch along several lines: the socioeconomic group they are part of, their life stage, employment status, and age. It also profiles those planning to purchase an Apple Watch in the next 12 months.
American first-time and repeat buyer purchase plans
As economic shifts, supply chain issues, and the effects of the pandemic linger, Americans continue to express their interest in technology products. However, their current purchase plans are all over the map, with several vital products experiencing a collapse in buyer interest. Tablets and smartwatches are looking up, printers down, and wireless item trackers are flat as consumers reel through their ups and downs.
This MetaFAQs reports on the purchase plans of online Americans for a smartwatch, printer, smartphone (iPhone or Android), wireless item tracker, home computer, fitness tracker, or tablet. The analysis splits 1st-time buyers from repeat buyers while also reporting on the number of current users without plans and those out of the market.
Americans have big plans for tech purchases
Smartphones and computers are top of mind for near-term purchases by nearly half of American online adults. Laptops lead desktops and tablets. Purchase plans for home printers are very low. This MetaFAQs reports on the percent of American adults who are planning to buy specific types of technology products in the next 12 months. The products include home computers, smartphones, laptops, desktops, tablets, wearables, and printers.
Consumer tech sentiment weakened
Forward consumer sentiment for buying technology products has weakened substantially in the last year, impacting many products from computers to Apple Watch. This MetaFAQs reports on the change in purchase plans between 2021 and 2022 for many products: smartphones, laptops, desktops, wearables, printers, and Chromebooks.