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Apple with its wearables, mainly Apple Watch has become the world leader at the end of the first quarter of 2017.
In the first quarter of 2016, the volume of connected items to carry on grew by 21% in one year from 18.2 million units delivered (watches connected, trackers etc.) to 22 million.
As per resources, Tim Cook’s firm is putting pressure on Apple’s 3.5 million in the first three months of the year + 59% in a year. It captured almost 16% of the market (+4 points in one year).
This success is due to the good sales performance of the Apple Watch Series 2, marketing pressure that is paying off to consumers and good visibility in stores (the Apple Store network in particular) “Said Neil Mawston, Executive Director, who focuses on the strategy for wireless terminals at Strategy Analytics.
Second place is Chinese Xiaomi, with 15.5% market share and 3.4 million wearables sold in the quarter. Nevertheless, its influence diminishes. In one year, it lost 5.4 points of market share.
The big loser in this race is called Fitbit. The American inherits third place with 13.7% market share, compared with 24.7% a year ago. It was simply the market leader, dethroned since by Apple. The volume of deliveries is significant: of 4.5 million wearable accessories sold in the first quarter of 2016, it only aligns more than 2.9 million a year later. Strategy Analytics notes a slowdown in demand for its line of connected bracelets and a ” slow breakthrough in emerging countries”.
This decline is reflected in drastic measures. At the end of January, Fitbit decided to lay off 6% of its workforce as it had just completed the acquisition of Vector Watch and taken over Pebble’s assets.
To restore some momentum, Fitbit could bounce back with the launch of its own connected watch, which is delayed in the fall due to developmental problems.
In order to boost its business, Fitbit also plans to focus on the app store, a potential business source to be developed as APIs (software connectors) for third-party developers.
To boost its expertise, Fitbit acquired Vector Watch last January after acquiring Pebble’s assets last year.