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Smartwatch Models (Photo : Getty )

Smartwatch shipments dropped almost one-third in the second quarter (Q2) of 2016, which represents the first time it has happened. Apple Watch sales still led the industry with 1.6 million shipments, but was the only top-five smart watch manufacturer to have a year-over-year (YOY) loss. Samsung, Lenovo, LG , and Garmin had small or no increases in sales of the wrist wearables.

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The Q2 figures were reported by research firm IDC on July 21, Thursday. Smartwatch shipments dropped from 5.1 billion units during Q2 2015 to 3.5 million units during the same period this year.

IDC points out that one reason for the sharp drop in wearable shipments is that Q2 2015 was when Apple's smartwatch launched, according to Tech Crunch. It also noted that consumers are waiting until the tech giant launches Apple Watch 2, which will likely be sometime this year.

Another factor is that the next version of the device's operating system watchOS 3 will roll out later this year. It will include upgrades including faster app loads.        

There have been few rumors about a second-gen Apple Watch in recent months. It reportedly could include a faster S2 processor and built-in cell connection.  

Apple's marketshare also showed a one-quarter YOY drop from 72 percent to 47 percent.  It is believed the company shipped around 3.6 million smartwatches during Q2 2015.

Samsung placed second for Q2, but only shipped 600,000 units. Its marketshare jumped from 7 percent to 9 percent due to strong sales of Gear S2, and larger distribution through United States wireless carriers.  

Meanwhile, Garmin reportedly only sold 100,000 units. That could be related to its niche market of athletes and fitness fans.   

The IDC report shows that there is less interest among consumers for smartwatches than other gadgets including smartphones and tablets.

In related news, Qualcomm recently reported quarter earnings of $1.4 billion, which is an 18.6 percent YOY increase, according to AppleInsider. That included a jump in sales of high-end smartphone chips.  

Qualcomm chips are almost required for connectivity to super-fast mobile networks. The chipmaker builds modem chips for Apple's iPhone and processors for several high-end Android phones.

Here are some Apple Watch 2 rumors: