Severe volatility in the smartwatch market continues to exist, a recent IDC report shows. Shipments dropped 51.6% year-on-year during the third quarter of 2016, with just 2.7 million units shipping compared to 5.6 million in last year's Q3. The Apple Watch is the biggest player in the market and Apple's Series One units saw a 72% decline to 1.1 million shipments.

Part of the decline can be attributed to the Apple Watch receiving a boost during Q3 2015 since that was first time it was widely available in retail settings, says IDC. However, the report still shows there is volatility in the market and consumers aren't entirely on-board with smartwatches.

The impact of Apple's recently introduced Watches won't fully appear until the next quarterly report is released. Holiday sales could also help the industry overall.