Fears that the upcoming launch of the Apple Watch would cause consumers to hold off buying wearables in Q1 2015 have proven unfounded according to IDC. Instead, the worldwide wearable device market grew for the eight consecutive quarter, even bucking the usual trend of slowing sales following the holiday shopping season. Wearable shipments hit 11.4 million units, up 200% from the same quarter a year ago when 3.8 million units shipped.
IDC attributed this sharp growth to a number of factors. “It demonstrates growing end-user interest and the vendors’ ability to deliver a diversity of devices and experiences. In addition, demand from emerging markets is on the rise and vendors are eager to meet these new opportunities,” said Ramon Llamas, research manager, Wearables. Falling prices was another strong factor as 40% of all wearables shipped were priced under US$100.
Fitbit remains the market leader thanks to an expanded product range that covers multiple segments of the market, from casual exerciser to committed athlete. Despite shipments rising more than 100% to 3.9 million units, it saw its market share drop from 44.7 to 34.2% as more competitors jump into the market with a growing range of devices.
Xiaomi, which did not even offer any wearables in Q1 2014, has jumped into second place thanks to sales of its Mi Band. Sales quickly topped the one million mark and are set to grow further as Xiaomi expands availability to new markets.
The wearables market landscape will likely be very different in Q2 2015. The Apple Watch began to ship in mid-April and, despite rumours of now-resolved production issues, is likely already in the millions. “What remains to be seen is how Apple’s arrival will change the landscape,” explained Llamas. “The Apple Watch will likely become the device that other wearables will be measured against, fairly or not. This will force the competition to up their game in order to stay on the leading edge of the market.”
Source : IDC