Apple Watch hits record 30% attach rate in North America in H1 2022

The Apple Watch connection rate hit 30% of iPhones in North America in the first half of 2022, according to Counterpoint’s Global Smartwatch Tracker and North America Channel Share Tracker. This is the highest link rate for the first half since Apple Watch launched in 2015, when Apple sold one Apple Watch for every ten iPhones. This demonstrates the growing popularity of smartwatches in the US market, especially Apple Watches.

The rate of connecting Apple Watch to iPhone has been steadily increasing over the years since Apple Watch launched in 2015. While Apple Watch has recorded a strong share of the North American smartwatch market since its launch, demand was initially limited, as use cases and customer value were not immediately recognized. Many saw the device as a fashion accessory rather than a useful tool that could improve their daily life. But now, as the Apple Watch matures, the usefulness of the device crosses three key lifestyle elements: fitness, health, and wellness.

Feature evolution drives adoption

At its launch in 2015, the Apple Watch had a limited range of features. It allowed users to pay, text, and call, but the benefits of having a smartwatch as well as a smartphone weren’t entirely obvious. But over time, new features have been added, including waterproofing, GPS, cellular connectivity, ECG generation, sleep monitoring, fall detection, always-on display, blood oxygen saturation detection, body temperature detection for health monitoring. ovulation and more. With the emergence of these features, the role of the Apple Watch as a useful health and fitness monitoring tool, as well as a small and lightweight alternative to a smartphone for daily activities, has become possible, allowing users to stay up to date with their notifications, pay at the store and go around the city all without the need for their smartphone (if they had an Apple Watch connected).

As more hardware has been added and new software features have been released, consumers are seeing the value that smartwatches can offer in their daily life, whether in combination with their smartphones or independently of them. As a result, more and more consumers are choosing to buy smartwatches. Apple dominated the 2010s as one of the most important technology companies in the world. Apple Watch will play a key role in maintaining that position this decade.

How does Apple Watch fit into Apple’s strategy?

While Apple gets a trickle of customers from the Android ecosystem every year, its major smartphone markets have reached or are close to saturation. This places Apple Watch at the heart of Apple’s hardware strategy as the company seeks high-end revenue growth.

1. Globally, Apple Watch shipments were only 18% of iPhone shipments in 2021. If Apple views every iPhone user as a potential Apple Watch user, the annual revenue opportunity for Apple Watch would be nearly $. $ 70 billion, which is nearly 550% more than Apple Watch’s current estimated annual revenue.

2. However, ASP will continue to grow with the introduction of more premium variants such as the new Apple Watch Ultra, which now costs as much as an iPhone 14. This means the earning opportunity could be much higher.

3. In the third quarter of 2022, services generated 23.6% of Apple’s total revenue, up from just over 10% in the third quarter of 2015. People love to listen to music while they run and exercise. A connected mobile Apple Watch will play a pivotal role in growing service revenue, primarily through Apple Music, Apple Care and Apple Podcast subscriptions. There is more room for growth if Apple decides to design more services to fit the form factor.

4. Apple Watch further strengthens the “walled garden” approach. It keeps abandonment in check and creates more hardware opportunities for Apple. This will be hugely important as Apple forays into health, fintech, automotive and beyond.

5. Additionally, new wireless standards such as 5G Redcap will open up new avenues of growth for the entire watch ecosystem. With the gains in power efficiency, battery life and connectivity, it’s likely to bring more engagement and edge-based applications to our wrist.

Apple Watch adoption has been slow but steady, charting the journey of Apple and consumers as they discover the roles smartwatches can play in consumers’ lives. As wearable device functionality has become clearer over time, adoption has increased, opening a door for Apple to continue growing its hardware and service revenues. But if Apple is to continue pushing adoption higher, it needs to find new ways to show consumers that wearables are a vital part of their device collections. New and improved features in health and fitness tracking are a good place to start, but more is needed to win over the unconvinced.

Source: counterpoint research

MacDailyNews takes: We love it when a plan takes shape.

Apple today unveiled the world’s first smartwatch, and once the Apple Watch hits the market in early 2015, nothing will ever be the same … Apple Watch, starting at just $ 349, will be a huge success … And, wow, they are wonderful! Is useful; more useful than most people still realize …

The stupidwatches currently on the market today have become even more anachronistic dead ends. If you have one of these time wasters: sell it. Get as much as you can for that piece of junk, make room for your wrist, and get ready for the world’s first true smartwatch: Apple Watch.

Along with many millions of people, you will want an Apple Watch. All you have to do touch it and see even a glimpse of what it can do and you’ll be sold … The Apple Watch will be a huge hit selling millions and millions of units. —SteveJack, September 9, 2014

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