Apple continues to dominate the wearable market in Q1, beating the likes of Samsung and Fitbit. According to data released by Strategy Analytics (via The Korea Herald), Apple maintained its dominant position by commanding a market share of 53 per cent, far ahead than the competition.
Apple has been maintaining its strong position in the wearable segment ever since it launched the second-generation Apple Watch last year. Moreover, Apple’s smartwatch sales have benefited from lower prices of Apple Watch. Earlier last year, the company had dropped the price of Apple Watch to $299 (or approx Rs. 19.629) for its entry level model.
Apple Watch sales “nearly doubled year-over-year” in the March quarter of 2017, Apple CEO Tim Cook said during the company’s quarterly results call. Cook also said that revenue from sales of Apple Watch along with AirPods and Beats devices is now the size of a Fortune 500 company. Last month, a report from International Data Corporation (IDC) said that Apple’s shipments rose by 64 per cent in the first quarter. Apple held the the second spot with a market share of 14.6 per cent behind Xiaomi.
Samsung on the other hand became the second largest player in the wearable market, according to market research firm Strategy Analytics. The South Korean company managed to capture 12.8 per cent market share during the January-March timeframe. Samsung was able to occupy the second position, primarily due to the success of the Gear S3, a premium smartwatch in terms of price and positioning. The Tizen-based Gear S3 was first announced at last year’s IFA tradeshow in Berlin.
The previous leader in the wearable segment, Fitbit, has fallen to third place. Fitbit had to settle with a market share of 12.2 per cent behind Samsung. Due to slowing demand for its fitness bands, the demand continues to tumble.
Although still in its early stages, the market for smartwatches and fitness bands keeps growing. According to International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker, a total of 125.5 million wearable devices are estimated to be shipped this year, a 20.4 per cent increase from the 104.3 million units shipped in 2016.