Fitbit has roundly trounced Apple in the wearable device category according to the latest IDC report, which covered the third quarter of 2016.
Fitbit claimed 23 percent of the wearable devices market whereas the Apple Watch range struggled to secure a measly 5 percent share.
Wearable Market Expansion And Apple's Performance
The figures in the IDC report are interesting for industry observers because they revealed that the wearable devices market as a whole has expanded. On the other hand, the smartmatch segment has declined, following a consistent trend in the market.
Apple's dismal performance is even highlighted by the drastic drop in its market share when compared with the same quarter last year. Cupertino shipped 3.9 million Apple Watches in Q3 2015 to secure 17.5 percent of the wearable device market. The company only managed 1.1 million shipments last quarter.
The drop reflected a staggering 71 percent year-over-year decline.
According to IDC, the poor showing of Apple devices can be attributed to an aging lineup and an unintuitive user interface.
"Though both issues have been addressed with the latest generation watches, Apple's success will likely be muted as the smartwatch category continues to be challenged," the report stated.
As a result, Apple tumbled one notch down the ranking and was replaced by erstwhile GPS manufacturer Garmin. Chinese upstart Xiaomi has maintained its second spot ranking.
Fitbit's Gain
It is important to note that Fitbit's gain has been driven by the market's interest in basic wearables. This product segment, which is largely composed of fitness bands, accounted for 85 percent market share.
Fitbit posted an impressive 11 percent year-over-year growth and this is said to be partly due to the sale of new wearables such as the Alta, Blaze, Charge 2 and Flex 2. The company also stands to gain further once it successfully acquires Pebble.
Emergent Players
Aside from Xiaomi, Samsung is also increasing its market share and it is on track to toppling Apple from its current perch should the trend continue. In the same period last year, the South Korean company only shipped around 500,000 of its wearables. Last quarter, that number increased to 1 million, which reflects an astounding 90 percent year-over-year growth.
Simplicity Is Key
IDC claims that, with Fitbit's ascendancy and Apple's decline, there is now a notable shift in the market.
"Where smartwatches were once expected to take the lead, basic wearables now reign supreme," Jitesh Ubrani, senior research analyst at IDC, said. "Simplicity is a driving factor and this is well reflected in the top vendor list as four out of five offer a simple, dedicated fitness device."
