Guess how many smartwatches Apple sold last quarter?

Apple underwent the worst quarterly performance in terms of sale of Apple Watches in the last quarter, bringing down overall performance of the smartwatch industry for the first time ever.

Sales of Apple Watches went down from 3.6 million units in Q2 of last year to 1.6 million units in Q2 this year even as Samsung and Lenovo improve their quarterly performance marginally, says an IDC report.

Apple Watch was launched in April of last year and is now available in most countries where Apple has a presence. Given that the Watch is now over a year old, its sales have started flagging with rumours abound that Apple may launch its second-generation Watches in September along with iPhone 7 and 7 Plus. Despite a fall in sales by over two million units in just a quarter, Apple still commands 47% of the smartphone market, down from 72% in Q2 of last year.

Apple hopes to sell 2 million Apple Watch 2s every month

Samsung, which launched Gear S2 smartwatch in September of last year, managed to sell around 400,000 units of smartwatches in Q2 of last year but has increased the number to 600,000 in Q2 of this year. Lenovo also increased its shipments of smartwatches from 200,000 to 300,000 smartwatches in the period, thereby increasing its share in the smartwatch market from 3% to 9%.

With both Apple Watch 2 and Samsung Gear S2 expected to launch in September, the smartwatch market will surely witness a surge in sales in Q4 of this year but it will be interesting to see if Samsung will be able to close the gap on Apple by the turn of the year.

Back in June, Digitimes claimed that Apple has ordered 'higher than expected' second-generation Apple Watches and is planning to sell two million Apple Watches every month. 'Orders for the upcoming Apple Watch have been higher-than-expected, said the sources. Judging from the orders, the sources estimated that about two million units of the new Apple Watch could be shipped monthly,' said the report. 'Sales of the Apple Watch have been a disappointment, the sources suggested. Therefore, the recent pull-in of orders for the second generation from Apple is "rather aggressive," it added.

Samsung's Gear S3 smartwatch Solis, in the works

Back in April, KGI Securities analyst Ming-Chi Kuo claimed that Apple Watch 2 may bring in substantial internal upgrades but design changes will be incremental. He added that while Apple could sell 10.6 million watches in 2015, it will sell only 7.5 million units this year as the wearables market is still 'immature.' The Apple Watch, like iPhones, may feature design changes every two years and every alternate 's' model will feature only internal upgrades.

Back in May, a report by Business Insider claimed that Apple Watches would account for 40 per cent of global luxury smartwatch shipments by 2020. The report found that three times as many people favour the Apple Watch over Android smartwatches and that the rise of Apple Watch will reduce the market share of fitness bands from 53 per cent in 2014 to 42 per cent by 2020 as well.

If Business Insider's predictions are accurate, Apple would do well to order Apple Watch 2 components in bulk prior to its official release in order to meet demand across the globe. Apple is also said to be planning several new models that would range between $1000 and $10,000 price tags. The new models could be given various names like Titanium, Platinum, Tungsten or Palladium.

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