Apple Inc. (AAPL) Reaches Second Spot On Wearable List Debut While Fitbit Inc (FIT) Remains First


Apple Inc. (NASDAQ:AAPL)’s Apple Watch made a strong impact on its debut itself, according to IDC. The company’s wearable has witnessed a total shipment of 3.6 million units in the June quarter. On the other hand, Fitbit Inc (NYSE:FIT) recorded 4.4 million units of shipment of its device. Only 0.8 million separated both the companies. The total volume of the wearable jumped 223.2% to 18.1 million units from 5.6 million units in the second quarter of the last year.

Market share

Fitbit Inc (NYSE:FIT) recorded a growth of 158.8% in the second quarter. However, that was not sufficient to retain its market share in the current year’s June quarter. As a result, its market share fell to 24.3% from 30.4% in the year-ago quarter. On the other hand, Apple Inc. (NASDAQ:AAPL)’s wearable took a market share of 19.9% straightaway.

China’s Xiaomi also made a big impact. The company’s wearable witnessed 3.1 million unit shipments in the second quarter and took it to the third spot with a market share of 17.1%. Garmin, which enjoyed a market share of 8.9% in the previous year quarter, suffered a drop in share to 3.9%. Similarly, SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) witnessed 25% drop in shipments to 0.6 million units. As a result, its market share plummeted to 3.3% from 14.3% in the prior year quarter. Other brands market share also dipped to 31.5% from 46.4% in the same quarter last year.

Apple Draw Attention

According to IDC’s Wearable’s team Research Manager, Ramon Llamas, whenever Apple Inc. (NASDAQ:AAPL) enters a new market, its products get the maximum attention. In the process, the industry as a whole also gets the consumers attention as its participation provided gains to several players, as well as platforms within the wearable. That finally fuels total volume of the industry.

The technology bellwether also forces other vendors to re-examine their products, as well as, experiences. Its product has become a benchmark for other to be measured by. As a result, rivals are forced to come up with what Apple provides or more than that. The industry is also looking to learn from Apple whether it will be unveiling any other wearable devices like hear-ables or smart glasses.

Basic Wearables

Though Fitbit Inc (NYSE:FIT) shipped more than Apple Inc. (NASDAQ:AAPL), IDC said that the former sells only the basic wearables. The research organization believes that the basic wearable segment will lose share in the next few years. As a result, the tech bellwether will become the number one player in the wearable segment. IDC’s Senior Research Analyst for Mobile Device, Jitesh Ubrani, said that two out of every three smart wearable’s shipped was none other than Apple Watch in the June quarter. That indicated its greatest impact.

Top Five Wearables Vendors, Shipments, Market Share and Year-Over-Year Growth, Q2 2015 (Units in Millions)

Vendor

2Q15 Shipment Volume

2Q15 Market Share

2Q14 Shipment Volume

2Q14 Market Share

2Q15/2Q14 Growth

1. Fitbit

4.4

24.3%

1.7

30.4%

158.8%

2. Apple

3.6

19.9%

0

0.0%

%

3. Xiaomi

3.1

17.1%

0

0.0%

%

4. Garmin

0.7

3.9%

0.5

8.9%

40.0%

5. Samsung

0.6

3.3%

0.8

14.3%

-25.0%

Others

5.7

31.5%

2.6

46.4%

119.2%

Total

18.1

100.0%

5.6

100.0%

223.2%

Source: IDC Worldwide Quarterly Wearable Device Tracker, August 27, 2015

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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