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IDC Says Apple Watch Shipments Drop 55%

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After an early morning pop, shares of Apple (AAPL - Free Report) are down about over 0.5% on Thursday after an afternoon report from International Data Corp that slammed the state of the wearable smartwatch market. According to IDC, Apple saw its Watch sales fall 55% in the second quarter.

Apple is the leading seller of smartwatches throughout the world, and the global smartwatch market saw sales decline 32% in the quarter. IDC bases their research on market data, and Apple did not immediately respond to a request to confirm the report, according to CNBC.

Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers, commented on the state of the market in today’s report.

"Consumers have held off on smartwatch purchases since early 2016 in anticipation of a hardware refresh, and improvements in WatchOS are not expected until later this year, effectively stalling existing Apple Watch sales," Ubrani said. "Apple still maintains a significant lead in the market and unfortunately a decline for Apple leads to a decline in the entire market.

Apple was the only top seller to record a yearly decline, while competitors like Lenovo (LNVGY - Free Report) and Samsung saw sales increase by at least 50%.

Apple is rumored to be preparing to announce a new version of the Apple Watch as early as September. The Watch is not a significant source of revenue for Apple, but its performance to-date has still been disappointing.

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