1Q16 wearable tech sales : Fitbit and Apple lead

The wearable tech sales numbers for 1Q16 is out, thanks to IDC. We expected Xiaomi to take the lead at least in basic wearables but they ended up losing market share to new brands like XTC, Lifesense while Fitbit managed to hang on to the top spot, thanks to Alta and Blaze models. In smart watch sales, Apple managed to grab nearly 50% of market share while Samsung and Motorola took the second and third places. Thing to note is that Apple and Fitbit go with far higher average selling price than Xiaomi (well, the price of Xiaomi Mi Band is less than the price of watch strap for Apple Watch and most Fitbit models). This results in far higher revenue for the current leaders in fitness wearables and smart watch segments.

“The good news is that the wearables market continues to mature and expand,” noted Ramon Llamas, research manager for IDC’s Wearables team. “The wearables that we see today are several steps ahead of what we saw when this market began, increasingly taking their cues from form, function, and fashion. That keeps them relevant. The downside is that it is becoming a crowded market, and not everyone is guaranteed success.”

“There’s a clear bifurcation and growth within the wearables market,” said Jitesh Ubrani senior research analyst for IDC’s Mobile Device Trackers. “Smart watches attempt to offer holistic experiences by being everything to everyone, while basic wearables like fitness bands, connected clothing, or hearables have a focused approach and often offer specialized use cases.”

Ubrani continued, “It’s shortsighted to think that basic wearables and smart watches are in competition with each other. Right now, we see both as essential to expand the overall market. The unique feature sets combined with substantial differences in price and performance sets each category apart, and leaves plenty of room for both to grow over the next few years.”