Apple, Inc.'s (NASDAQ:AAPL) dominant competitive positioning in the smartwatch segment is here to stay, according to Loup Funds co-founder Gene Munster.
What Happened: Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) confirmed the launch of the Pixel Watch at the Google I/O 2022 — and it will be pitted against rival offerings from incumbents that include Samsung and Apple.
Following the announcement, Munster wished Google "luck" in competing with Apple.
The analyst noted that Cupertino has a tight grip on the smartwatch market and commands an 85% share of the overall market. The potential penetration is likely to be high, the analyst implied. He noted that, currently, just 13% of active iPhone users own an Apple Watch.
Related Link: Apple Analyst Sees Limited Upside/Downside In Stock Until This Happens
Why It's Important: Global smartwatch market grew at a robust 24% clip in 2021, with Apple leading the race, data from Counterpoint Research shows. Apple does not report smartwatch revenue separately and clubs it in the ‘Wearables, Home & Accessories" segment. This business segment ringed in revenue of $8.8 billion in the March quarter, a 12.4% year-over-year increase.
Apple, on its part, is working on several smart capabilities to make its wearable device a "must-have." Apple analyst Ming-Chi Kuo recently said the next iteration of the device could come with body temperature measurement.
Reports suggest the Pixel Watch will blend Wear OS and Fitbit, which Google acquired in January 2021.
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