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15 November 2017, 12:55 | Dale Webster
Apple Watch retakes lead of wearables market, Xiaomi second: report
Armed with his kitesurf and Apple Watch 3 on his wrist, one John Zilles took against the waves on a new underwater hydrofoil wing, but about a mile in, he wiped out, and couldn't get his heavy kit airborne again. Apple shipped 3.9 million Watches, marking its strongest quarter of 2017 so far. Apple shipped 23% of all smartwatches, fitness bands, and other wearables, Canalys said, just ahead of Chinese low-priced seller Xiaomi, at 21%, and Fitbit (fit), which captured a 20% market share. Still, their performance was better than average in the sluggish Q3, according to Canalys, where business has historically been slower. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. Despite increased shipments, the overall wearable band market dropped by 2% to 17.3 million units, primarily due to the waning demand for the basic bands, Canalys estimates.
The refreshed Apple Watch also helped Apple (aapl) grab the top spot in the quarter's market rankings. We began shipping Apple Watch series 3 just six weeks ago and customers love the new freedom of cellular. "Apple and Samsung are increasing user stickiness and brand loyalty by adopting an ecosystem strategy, which includes wearables and audio accessories". It must be noted that the Watch Series 3 was only on sale for the last ten days of the quarter ending September. Despite the late launch in the period, a quarter of the total Apple Watches sold were LTE S3 Apple Watch models.
Samsung, Apple and Huawei, the top three smartphone vendors by volume in Q3 2017, have positioned smartwatches to complement their premium smartphones. The Chinese government has now disabled the Apple Watch LTE access due to apparent security concerns, but the once the issue is resolved, Canalys expects strong demand from the Chinese buyers as well, according to 9to5mac. The company making the Apple Watch found itself in that position in Q1 as well, but in Q2 it was overtaken by both Xiaomi and Fitbit.
At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02.
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