IHS: Smartwatch Market Depends on Watch

According to IHS smartwatch shipments are set to grow from 3.6 million units in 2014 to 101m units in 2020-- but only if the Apple Watch manages to drive consumer awareness (and sales) in the product category.

Apple WatchThe analyst predicts 2015 Watch shipments will reach 19m units, or 56% of total smartwatch shipments for the year. However Watch share should drop to 38% by 2020, since more vendors will refine their wearable product offering   to "successfully serve" the Android market.

“Apple Watch success will drive the overall smartwatch market,” said the analyst says. “The smartwatch will become a key accessory device offered by most leading smartphone manufacturers seeking to dominate this new profitable market. We forecast the ratio of smartwatch shipments to smartphone shipments will increase from 1:500 to 1:20 between 2014 and 2020.”

Thus, as IHS puts it, the success of the Watch success is in everybody's interest-- since the Apple wearable is only compatible with iDevices, it should boost demand for similarly high-quality products serving Android users.

“Should Apple stumble with its foray into smartwatches, the smartwatch market will suffer similarly," the analyst warns. "Smartwatches could then follow the fate of Google Glass. Without Apple and its marketing strength, the smartwatch category needs greater marketing spend from other smartwatch makers to overcome damage to consumer perception. Apple’s smartwatch competitors need the Apple Watch to succeed.”

Go Apple Watch Success Needed for a Smartwatch Mega Boom (IHS)