Smartwatch display unit shipments are expected to grow 250 percent year-over-year, reaching a record 34 million units in 2015, led by demand for the new Apple Watch, according to IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. The display market is still assessing the staying power of smartwatch demand, so as not to overshoot display supply needs in the coming year, particularly for the year-end shopping season. Smartwatch display shipments are therefore forecast to decline to about 6.5 million units in the fourth quarter (Q4) of 2015, after reaching a high point of 10.5 million units in the third quarter.
Because both Apple Watch and Samsung Gear rely on active-matrix organic light-emitting diode (AMOLED) panels, that technology will comprise the majority (58 percent) of total smartwatch panels shipped. Based on the latest information from the IHS Quarterly Small/Medium Shipment and Forecast Report, Apple Watch is expected to make up 84 percent of AMOLED smartwatch panels and 49 percent of total displays for smartwatch shipped in 2015.
“Apple Watch has attracted a lot of attention from consumers, which has led to increased demand,” said Hiroshi Hayase, director of analysis and research for IHS Technology. “The display market is carefully watching consumer response to products in the smartwatch category, which should help to improve future display technologies.”
The IHS Quarterly Small/Medium Shipment and Forecast Report covers the entire range of small and medium (9 inches or smaller) displays shipped worldwide and regionally. Backed by data from over 35 suppliers and industry analyst insights, the report analyzes historical shipments and forecast projections.