New information from Canalys shows that there is a lot of competition in the market for wearable technology.
The market research firm estimates that Apple shipped over 3.8 million smartwatches during the first quarter of 2018, allowing the company to maintain its position as the leading worldwide wearable producer. With 3.7 million shipments, Xiaomi was a little bit behind the competition. Apple and Xiaomi each claimed approximately 18% of the market share.Fitbit came in third place, accounting for 11 percent of the market, followed by Garmin and Huawei, each of which held 7 percent of the market share. The other competitors lag far behind.
It is essential to emphasize the fact that all of the Cupertino company’s earnings from its wearables come from the sale of smartwatches. On the other hand, Xiaomi generates ninety percent of its revenue from the sale of its inexpensive Mi Band, while the remaining ten percent comes from the company’s Huami brand of reasonably priced smartwatches. Therefore, even though the two companies have comparable forecasts for their shipments, the money that they have collected is very different.
Jason Low, a senior analyst at Canalys, breaks down the reasons behind Apple’s continued success. According to him, the number of LTE-enabled watches that Apple has been able to push into the hands of consumers is one of the most important factors in the company’s success with its most recent Apple Watch Series 3 product.
Both the additional money from device sales and the additional revenue from subscriptions for data on the Apple Watch are welcomed by operators, and the number of operators across the world that sell the LTE version of the Apple Watch is growing each month.
In fact, Apple was able to secure nearly 59 percent of the market share for smartwatch sales in just three months.It should come as no surprise that the company sold fewer units than it did in the prior quarter, which saw shipments reach an all-time high of 8 million due to the strong performance of holiday sales. When compared to the same period in the previous year, the number of units shipped remained the same.
According to the survey, the market for wearable technology had growth of 35% year over year, reaching a total of 20.5 million devices sold. Smartwatches only made up 43% of wearable band units sold during the quarter, but they brought in 80% of the income, while basic bands only brought in 20% of the total.
It will be an intriguing question to see how Apple is able to preserve its commanding share of the market in the years to come. The smartwatch market is going to be the primary battlefield, and the level of competition is getting fiercer. Fitbit has entered the battle with its Ionic and, more recently, its Versa devices, and it is speculated that Google may launch its Pixel-branded watch range before the end of this year.