Wearable Market Growth

Earlier this year, International Data Corporation (IDC) announced fresh statistic on Wearable market all over the world for the year 2016. The data included  from basic health trackers to smartwatches. We can begin by saying that wearables are still alive as there has been a significant market growth. There has been a 16.9% year over year market growth with a boom in unit shipments in fourth quarter of 2016 reaching 33.9 million. And talking about the whole year we have 25% growth owing to the existing masters enhancing their gadgets and the new producers coming up in the market.

Fitbit was on top followed by Xiaomi, Apple and others. Apart from the top 5 producers we have newbie’s too like Fossil stepping into the niche segment of the wearable market. It’s seen that more than demand by the consumers there has been uplift by the new vendors itself and this has a very positive impact on the industry. Apart from technology and the watch performing its basic function like collecting data, ‘fashion’ is also kept in mind as consumer are now wanting fusion of two.

Now coming to numbers, we can see an upswing in Apple and Xiaomi because of 22.7% decline in the market’s champion Fitbit having a decrease in unit shipment from 8.4 million in 4Q15 to 6.5 million in 4Q16. This is the company’s one of the biggest downfall and the reason behind it is said to be it facing a lower demand than it expected during the holidays and the vendor concentrating more on the US, also other competitors are giving a strike in terms of cost. Yet Fitbit tops in both the quarters as well as the year.

At the second position we have Xiaomi, which has remarkably broadened the gap between itself and Apple on third position simultaneously at the same time narrowed the gap between itself and Fitbit on the top. With 96.2% year over year rise in the quarter and 5.2 million units shipped, Xiaomi marked the largest growth score. It managed to come on second position which was previously owned by Apple in fourth quarter of 2015. Although it’s kind of devoid of its brand awareness beyond china yet it’s using the low-cost approach and commencing new technology to flourish.

 

Apple on the third position shows 13% year over year growth for the quarter and holds 13.6% market share in 4Q16. Its unit shipments come to 4.6 million. This marked to be company’s biggest quarter in the wearables market as it broke sales record in time of holidays. Few improvements in its current watch Series 2 like the new user interface and GPS acted as a helping hand to its success.

We have Garmin at the fourth, facing a decline by 4% year over year growth in 4Q16 and having 2.1 million units shipped. It’s more focused on fitness enthusiasts who prefer more advanced sport watch.

Samsung came out to be the last runner-up in the list of top 5, having 37.9% year-over-year rise with 1.9 million units shipped, owing to its debut of new models. Cellular connectivity draws a distinction between this company and the others. The watch can be used as a standalone band giving the company hype in the market.

Comparing the sales of the two years (2015 and 2016), we can see the leader Fitbit noted a tiny growth of half a million units. Whereas, Xiaomi nailed the highest growth from 12 million units to 15.7 million units. Apple had a slight downfall of approx a million units. While both Garmin and Samsung pointed growth in their unit shipments. Overall there was an increase by 20.5 million unit shipment from 2015 to 2016 and the Year-Over-Year Growth by 25%.

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