Xiaomi’s promotion is partly due to the company offering a variety of health-care wears at low prices, while Apple Watch does not currently focus on this feature.
According to the Strategy Analytics, in Q2/2017 (starting in April and ending in June) Xiaomi has become a leading supplier in the wear market. Compared to the same period last year, Fitbi’s market share has dropped from 28.5 % to 15.7 %. Xiaomi currently holds a market share of 17.1%, making it the number one wear accessory in the market. Last year, at this time, Xiaomi share was 15 %.
Although Fitbit is primarily known for health monitoring products, the company is also working on a separate smartwatch development project (so far unsuccessful). In the face of tough times, Fitbit has laid off 110 employees and is settling lawsuits against the firm. Apple has increased its share of wearable devices by 44% from 9% to 13%. Meanwhile, Strategy Analytics’ other group of companies “increased their market share from 47.5% to 54.2%.
In the last quarter, Xiaomi sold 3.7 million wearables. Fitbit is the second position with 3.4 million devices (down from 5.7 million devices last year). And Apple sold 1 million Apple Watches from April to June, up from 1.8 million in the same period last year to 2.8 million. “Other companies” increased from 9.5 million devices to 11.7 million devices (compared to the same period last year).
According to Cliff Raskind, Director of Strategy Analytics, Apple lost to Xiaomi in the last quarter due to a lack of presence in the field of healthcare equipment. However, Raskind believes the Series 3 Apple Watch will be enhanced with health tracking features and may put Apple back in the lead at the end of the year.
Neil Mawston, CEO of Strategy Analytics, said: “Xiaomi has sold 3.7 million units worldwide in the second quarter of 2017, up 23% from 3 million units in the second quarter of 2016. Captured 17% of global market share and overtook Fitbit, Apple to become the world’s largest wearable wear supplier. The Xiaomi Mi Band is a popular wearable in China due to its competitive price and rich features such as heart rate monitor, step counter and calendar. Fitbit has shipped 3.4 million wearables, accounting for 16% of the world market share in the second quarter of 2017, down nearly 29% from last year. The company is also at risk of being trapped by the low-cost Xiaomi health-care device and high-end smartwatch from Apple. ”
Overall, the wear accessory market has sold a total of 21.6 million units in the second quarter, up 8 percent from 20 million at the same time last year.