Wearables may have lost consumer interest but they continue to grow in terms of market share. According to research firm IDC, the global wearables market registered a growth of 16.9 percent in Q4 2016 with shipments reaching 33.9 million units.
Fitbit continues to lead the market despite tough few quarters followed by Xiaomi and Apple. Fitbit leads the fourth quarter with a market share of 19.2 percent, which is a 9.8 percent decline from same period last year. The company shipped 6.5 million fitness trackers in fourth quarter with total shipments reaching 22.5 million units in 2016. "The company also faced one of its largest declines ever as it remained heavily focused on the US, a market that is quickly approaching saturation for fitness trackers," notes IDC.
Xiaomi continues to gain momentum in the segment with its cheap Mi Band offering. The company shipped 5.2 million units in fourth quarter and total of 15.7 million in 2016. With 15.4 percent market share, Xiaomi has grown 31 percent year-over-year. IDC says, "Like its other product lines, the company has stuck with a low-cost strategy and has slowly tried to veer upstream in terms of pricing by introducing new devices with heart rate monitoring and a mildly higher selling price."
According to IDC, Apple shipped 10.7 million Apple Watch units in 2016 with 4.6 million of those getting shipped in fourth quarter alone. "The lower entry price point and the inclusion of GPS on the Series 2 along with a completely revamped user interface have helped the company grow its presence." Garmin with its 6.1 percent market share and Samsung with 4.4 percent share round the top live list. "As the technology disappears into the background, hybrid watches and other fashion accessories with fitness tracking are starting to gain traction," said Jitesh Ubrani, Senior Research Analyst, IDC Mobile Device Trackers.
The wearables market is changing and IDC claims that ear-worn wearables will gain more market share. IDC says numerous devices in the hearables segment are expected from notable vendors in 2017.