Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

A Foolish Take: Apple Dominates the Wearables Market Again

By Leo Sun - Sep 10, 2018 at 12:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The iPhone maker is reshaping the wearables market at Fitbit’s expense.

Worldwide wearables shipments grew 5.5% annually to 27.9 million during the second quarter, according to research firm IDC. A higher mix of pricier smartwatches boosted the segment's dollar value by 8.3% to $4.8 billion.

Apple ( AAPL -1.17% ) retained its position as the market leader, thanks to strong demand for its LTE-enabled Apple Watch, according to IDC. The recent introduction of watchOS 5 and the upcoming launch of the Apple Watch 4 could widen that lead.

Worldwide market share of wearable devices.

Data source: IDC. Chart by author.

Xiaomi ( XIACY ) ( XIACF -0.91% ) ( 1810 -2.54% ) continued to dominate the low-end market with its Mi Band devices, which cost less than $30. The company also recently diversified its portfolio with children's smartwatches and shoes.

Fitbit ( FIT ), which lost its crown to Apple last year, continues to lose market share due to waning demand for basic and mid-range fitness trackers. It was also the only market leader to post a year-over-year drop in shipments. However, IDC said that Fitbit's Versa smartwatch was still the world's "second largest smartwatch brand" with 1.1 million units shipped.

There's still plenty of room for all these companies to grow -- IDC expects wearable shipments to rise from 124.9 million this year to 199.8 million by 2022.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$161.84 (-1.17%) $-1.92
Fitbit, Inc. Stock Quote
Fitbit, Inc.
Xiaomi Corporation Stock Quote
Xiaomi Corporation
$2.45 (-0.91%) $0.02
Xiaomi Corporation Stock Quote
Xiaomi Corporation
Xiaomi Corporation Stock Quote
Xiaomi Corporation
$19.16 (-2.54%) $0.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.