As the smartwatch market grows, an increasing number of companies are trying to bring their wearables to the market and as the number of devices increases, the components required are purchased from other specialist manufacturers.
According to the market research firm DisplaySearch, LG leads the global smartwatch display market by a good margin. LG is the leader in terms of market share as well as revenues generated from the watch screen units. LG’s deal for the Apple Watch seems to have pushed LG well beyond others in the market.
During the first three months of this year, LG obtained a market share of 67% in terms of shipments and gathered almost all the returns from the market with a 91% market share in revenues. Out of the $240 million smartwatch display market, Samsung manages only 3.1% percent of the market share and is followed by Japan Display with 2.4% and Futaba 1.8%. The stats represent a pretty one-sided affair in terms of competition against LG.
LG has 91% of the revenues and 67% of the market share from the smartwatch display industry
The 67% percent of the total display shipments represent around 8 million units sold by LG. Most of these were shipped to other smartwatch manufacturers. 8 million units is that were shipped by LG, are more than seven times the number that LG shipped in the previous quarter. The market is followed by Japan display with 1.4 million units, Futaba with 1.12 million units and Sharp Display with 900,000 units.
The outstanding number posted by LG are stated to be due to the Apple Watch screen shipments. LG is the sole supplier for the Apple Watch, and despite supply issues LG and Apple seem to be doing a lot of business. It should also be noted that LG has released the most number of Android Wear smartwatches which represent a big chunk of the pie too.
LG is the sole supplier for the Apple Watch, which is the most popular smartwatch in the market
According to the research firm, the only major competitor that could arise against LG is Samsung. Both LG and Samsung are the only manufacturers that can manufacture Plastic OLED displays which are considered to be the future of the smartwatch industry. P-OLED displays allow smartwatches to be built in a traditional circular design and are due to become the industry standard in the coming months. LG could also be joined by Samsung in the near future for the next-gen Apple Watch, making the competition even tougher.