Report raises sales estimate for Apple smartwatch

SAN FRANCISCO – A new report estimates Apple shipped 3.6 million watches in the last quarter – more than some analysts have estimated and enough to change the competitive landscape for fitness bands and other wearable gadgets.

Apple shipped enough units of its new smartwatch to nearly overtake market leader FitBit in the last quarter, according to analysts at International Data Corp. Their report warns that traditional fitness bands may be losing popularity to smartwatches and other devices that offer more features.

“People want to get more out of their devices,” said IDC’s Ramon Llamas. “It’s kind of like the way smartphones overtook basic phones.”

Consumer response to the Apple Watch has been the subject of intense speculation since the new gadget went on sale this spring. While Apple is known for making popular gadgets, the watch represents a new category of products for the company. Critics have questioned whether it’s useful enough for consumers to need or want one on their wrist.

Apple has not revealed how many watches it has sold at prices that start at $350, with luxury models selling for $10,000 or more. After the company issued its last financial report, in which Apple lumped watch sales into a broader category it calls “other products,” many analysts estimated Apple sold between 2 million and 3 million watches during the quarter that ended in June.

While the IDC figure for the Apple Watch is higher than other recent estimates, it’s still lower than many projections made before Apple started selling the watch in late April. IDC had initially forecast Apple would ship about 22 million watches during the calendar year. Llamas said that now seems unlikely.

Still, he said Apple’s clout in the marketplace will influence other makers of wearable gadgets.