Apple Inc. Continues To Dominate The Wearables Market (AAPL)
Jun 09, 2017, 02:51
Companies shipped a total of 24.7 million wearable devices during the first quarter of 2017, up 17.9 percent from 20.9 million units shipped during the same period a year ago.
But, the IDC report goes on to suggest that the complete wearable ranking has been shuffled due to a sudden shift in the ideology of the consumers as well.
Xiaomi, which started 2017 as the co-leader of the wearables market alongside Apple after spending several years as the number two or three company, has shipped more than 96 percent of - mainly fitness tracking wristbands - in China. Apple's shipments rose by 64 per cent in the first quarter, while Xiaomi slipped by 3.3 per cent. But while Xiaomi sells mostly low-priced fitness bands, Apple sells premium smartwatches branded as Apple Watch.
Xiaomi and Apple have supplanted Fitbit, the next question is whether they will be able to maintain their position. The fitness band maker has found itself in the said position because of the ongoing change that Fitbit has decided should be undertaken to establish itself as a prominent player in the wearable ecosystem. The fitness tracker manufacturer is thus expected to have an easier time with entering new markets than the majority of its competitors, which bodes well for its long-term prospects.
"The market is arguably still in the first phase of development, where companies are focused on seeding wearables into the market", IDC analyst Jitesh Ubrani said in a news release.
Both Xiaomi and Apple have gained from Fitbit's losses, jumping up the ranks to share the top slot.
Apple was already dominating the smartwatch market and this gave the Cupertino giant another opportunity to maintain a sustained demand for Apple Watches.
Apple and Xiaomi each shipped 3.6 million wearables worldwide in the first quarter, IDC said. Samsung almost doubled its wearables volumes to 1.4 million units for a 5.5% share in the first quarter, driven by its Gear S3 Frontier and Classic smartwatches. Llamas, however, continues to mention that Fitbit is not completely dead and could soon make a splashing return to the wearable market.
Even though Fitbit is now on a noticeable decline, IDC believes that the company may improve its performance in the future due to its massive user base that's approximately 50 million strong, in addition to its focus on the corporate wellness segment that's believed to be extremely sustainable.
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