Fitbit maintains its lead position in wearables market
CHINESE VENDORS SEIZE UPON MARKET MOMENTUM TO GRAB MARKET SHARE
Fitbit retained its number one ranking in the global wearables market in the third quarter despite stiff competition from Apple and Xiaomi. According to research firm International Data Corporation (IDC), total shipments for the quarter stood at 21 million units, up 197.6 per cent from the 7.1 million shipped in the same period last year.
“The early stages of the wearables market have led to tight competition among the leading vendors, and Chinese vendors have seized upon market momentum to grab market share,” said Ramon Llamas, research manager for IDC’s wearables team.
He said that China has quickly emerged as the fastestgrowing wearables market, attracting companies eager to compete on price and feature sets. In addition, multiple vendors have experimented with a broad range of products and applications.
The challenge, however, he said is that whether these vendors can expand their presence, as few have extended beyond the country’s borders and into other markets.
Fitbit relied on its popular Fitbit Charge and Fitbit Surge models to maintain its leadership in the market, and also saw continued growth within the Asia/Pacific and Europe, Middle East, and Africa (EMEA) markets.
End-user attention
Apple posted a slight increase from the previous quarter, mostly the result of additional markets and channels coming on line.
End-user attention has been going toward its entry-level and least expensive Sport line, to which Apple responded by introducing gold and rose gold models. In addition, Apple released watch OS 2, bringing native third-party applications to the device.
Xiaomi’s inexpensive Mi Band lifted volumes during the quarter, with more than 97 per cent shipped to China. Volumes outside of China remain limited, although progress has been made in Western markets.
Adding to Xiaomi’s selection is its Mi Band Pulse, which added real-time heart rate monitoring and was released on Singles Day (November 11) in China.
Garmin’s focus on citizen athletes with wearables for running, golf, swimming, hiking and aquatics kept the company well entrenched as the clear number four vendor worldwide. With a deep and broad product portfolio and multiple price points, Garmin has been well-positioned to cover numerous market segments and address the rising fitness tracker category with its Vivo sub-brand of bands and watches.
Chinese vendor XTC, a subsidiary of BBK, beat Samsung for the number five position by 100,000 units in its worldwide debut. Like other Chinese vendors before it, XTC maintained its focus exclusively within China, and with just one device: the Y01, a children’s phone watch.
While there has been clear growth in the wearable market, there has been little sign of product cannibalisation. Smart watches have drawn increased attention to the market from the likes of Apple, Motorola, Pebble and Samsung, but this has not dampened interest in fitness trackers.
By the end of the third quarter, Llamas said that shipments in both product categories increased sequentially year on year, showing that, for now, the categories can coexist and grow.
This also provides end users with choice in terms of feature sets and functionalities, ranging from simple fitness tracking to smartphone-like experiences.
Jitesh Ubrani, senior research analyst for IDC mobile device trackers, said that the average smart watch or band came in at just over $400 and the average basic watch/band at $94.