The top wearable vendor positions were in a state of flux in Q3, with Xiaomi challenging Apple for the second-place spot, and Samsung beaten to fifth place by newcomer XTC. IDC says that total shipment volume for the quarter was 21 million units – up almost 200% (197.6%) from the 7.1 million units shipped in Q3’14.
Because the wearables market is still in its early stages, competition is fierce, says IDC’s Ramon Llamas. China is the largest market, attracting companies willing (and eager) to compete on price and feature sets. In addition, many vendors have experimented with a range of products and applications. The challenge is whether they can expand their presence; few have managed to be successful outside of China.
Product cannibalisation has not yet begun in the wearables sector. Smartwatches are not impinging on fitness trackers, for example, with shipments of both products rising QoQ and YoY. As well as features, these products are differentiated by price; smartwatches cost, on average, $400, while fitness trackers are sub-$100.
| Top Five Wearables Vendors’ Shipments, Market Share and YoY Growth, Q3’15 | |||||
|---|---|---|---|---|---|
| Vendor | Q3’15 Unit Shipments | Q3’14 Unit Shipments | Q3’15 Share | Q3’14 Share | YoY Change |
| Fitbit | 4.7 | 2.3 | 22.2% | 32.8% | 101.7% |
| Apple | 3.9 | 0.0 | 18.6% | 0.0% | N/A |
| Xiaomi | 3.7 | 0.4 | 17.4% | 5.7% | 815.4% |
| Garmin | 0.9 | 0.5 | 4.1% | 7.0% | 72.5% |
| XTC | 0.7 | 0.0 | 3.1% | 0.0% | N/A |
| Others | 7.3 | 3.9 | 34.6% | 54.6% | 88.8% |
| Total | 21.0 | 7.1 | 100.0% | 100.0% | 197.6% |
| Source: IHS | |||||
Market leader Fitbit relied on its Charge and Surge models to maintain its first place spot. The company grew its presence in EMEA and APAC. Its ‘Corporate Wellness’ strategy has been fast-growing, with Target joining as a new North American retailer and ordering 335,000 trackers for its employees. More than 70 Fortune 500 companies are now part of the programme.
Thanks to new markets and channels, Apple posted a slight increase from Q2’15. End-user attention has been focused on the least expensive entry-level Apple Watch, and Apple has responded by introducing new editions of the low-cost Sport model.
Xiaomi’s inexpensive Mi Band boosted the company’s performance. More than 97% of units were shipped in China; volume outside the country was limited, although Xiaomi is still making progress in Western markets.
Garmin remained the number four vendor, with its focus on ‘citizen athletes’. The company has a broad portfolio and hits multiple price points. Fifth place went to Chinese vendor XTC, a subsidiary of BBK, which beat Samsung by 100,000 units in its worldwide debut. The company’s focus was exclusively on China, with just one product: the Y01, a phone watch for children.
