While the Apple Watch may have lost market share to other smartwatches in Q1 2016, its future prospects remain strong if one marketing firm is to be believed. A new study by Business Insider predicts that the Apple Watch will account for 40% of the luxury watch market (defined as watches that sell for US$350 or more) by 2020.
The report bases its predictions on a number of factors. First is the growing consumer interest in the Apple Watch by traditional watch owners. 27% of watch owners find the added functionality of Apple’s smartwatch appealing. Also working in Apple’s favour is the trend away from dedicated fitness bands toward devices such as smartwatches that offer a wider range of features.
Apple is not expected to unveil a major redesign for the Apple Watch until next year at the earliest. If so, Apple’s rise to domination in the luxury watch market may take more of a slow and steady pace for now. It will pick up as it gains the new features that will sway traditional watch wearers to switch to smartwatches.
For his part, Apple CEO Tim Cook was quick to remind analysts during last week’s latest quarterly results call that the iPhone also took a number of years to become the bona fide hit that it is today. It would appear that at least one research firm agrees that the best is yet to come for the Apple Watch.