The Apple Watch remained the market pioneer however it sent a little more than one million units in the second from last quarter of 2016 (July - September).
Amid a similar period in 2015, it sent 3.9 million. Of the five driving brands, just Garmin indicated development yet its figures stayed low.
Be that as it may, this was a period before new forms were discharged, specialists said.
In any case, despite everything it recommends that buyer hunger is feeble, said Jitesh Ubrani from IDC.
"It has ended up apparent that, at present, smartwatches are not for everybody," he said.
"Having an unmistakable reason and utilize case is foremost, henceforth numerous merchants are concentrating on wellness because of its straightforwardness."
Apple has situated its most recent variant of the Watch as a wellness gadget instead of an extravagance design adornment - it ceased the gold version of its unique wearable, which retailed at $10,000 (£8,000), a month ago.
The new form can track swimming movement and an extraordinary release, in organization with wellness goliath Nike, is expected to go discounted on Friday, 28 October.
"This most recent quarter is not a genuine representation of what is going on with wearables," said industry examiner Ben Wood from CCS Insight.
"The new Apple Watch was approaching, Samsung has reported new items that are not transporting yet and Google has deferred the following arrival of Android Wear."
IDC took a gander at smartwatch brands which run outsider applications in its market report.
It found that:
Apple's year-on-year decrease regarding its Watch gadget shipments was 71.6%
Garmin was the main brand to show development with shipments of 0.6 million in the second from last quarter of 2016 contrasted and 0.1 million in 2015
Samsung dispatched 0.4 million of its Gear and Gear2 watches in both 2015 and 2016
Lenovo, which makes the Motorola marked Moto 360, endured the greatest drop with shipments around 73.3%
Rock additionally eased back from 0.2m to 0.1m shipments
The tech goliaths confront enormous rivalry from customary watchmakers, Ben Wood accepts.
"We really trust the developing number of purported shrewd simple watches are the place the fundamental activity will be in 2017, especially too settled watch brands like Fossil increment the quantity of more astute models they offer however conventional watch retail channels," he said.
Smartwatch deals indicate sharp decrease, report finds