Fitness devices dominate wearable technology market
The wearable technology sector grew by 3.1 per cent year on year in the third quarter of 2016, with basic wearables - mainly fitness bands - accounting for 85 per cent of the market.
The total shipment of wearables reached 23 million in the three-month period, according to data from the International Data Corporation (IDC)’s Worldwide Quarterly Wearable Device Tracker.
Fitness bands experienced double-digit year-on-year growth. Much of the rise during the July-September period was attributed to the launch of newer models and an expanding user base.
Fitbit was once again the market leader in the third quarter, with year-on-year expansion up 11 per cent to 5.3 million units, from 4.8 million. In August, the company released its Flex 2 and Charge 2 bands.
During Q3, Xiaomi saw sales increase by 4 per cent to 3.8 million units, from 3.7 million. However, the IDC report said Xiaomi continues to struggle to gain any significant traction outside its home country of China.
Garmin, which was third in terms of market share, witnessed a 12.2 per cent year-on-year growth to 1.3 million units, from 1.2 million.
Apple saw a year-on-year decline in Q3, with sales plummeting 71 per cent to 1.1 million units from 3.9 million. The report said the smartwatch category continues to be challenged.
Samsung made the top five during the third quarter, shifting 1 million units, up 89 per cent year-on-year, from approximately 500,000.
‘Other’ wearable devices accounted for 10.4 million shipments in Q3. This category saw a year-on-year rise of 26 per cent from 8.3 million units.
IDC said it expects the momentum for basic wearables to continue for the remainder of the year.
“It's still early days, but we're already seeing a notable shift in the market," said Jitesh Ubrani, senior research analyst for IDC mobile device trackers. "Where smartwatches were once expected to take the lead, basic wearables now reign supreme. Simplicity is a driving factor and this is well-reflected in the top vendor list, as four out of five offer a simple, dedicated fitness device. Meanwhile, from a design perspective, many devices are focusing on fashion first while allowing the technology to blend in with the background.”
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