Apple set out to be the market leader of wearables with the April 2015 release of the Apple Watch. However, a new report from the International Data Corporation (IDC) found that, although the company did not reach this goal, it ranks in at a close second place behind Fitbit.
According to the IDC Worldwide Quarterly Wearable Device Tracker report, Apple shipped 3.6 million units in the second quarter of 2015, making it just 0.8 units shy of taking the top spot. In the same time period, Fitbit sold a total of 4.4 million units, making it the leader. Fitbit has seen triple-digit year-over-year volume growth and double-digit year-over-year revenue and profit growth worldwide.
With these impressive numbers, Fitbit has just over 24 percent, whereas Apple accounts for almost 20 percent of the market.
"About two of every three smart wearables shipped this quarter was an Apple Watch," Jitesh Ubrani, Senior Research Analyst for IDC Mobile Device Trackers said in the report's press release. "Apple has clearly garnered an impressive lead in this space and its dominance is expected to continue. And, although Fitbit outshipped Apple, it's worth noting that Fitbit only sells basic wearables — a category that is expected to lose share over the next few years, leaving Apple poised to become the next market leader for all wearables."
Even though Apple fell short of becoming the largest wearable company, the release of the Apple Watch boosted the overall sale of wearables, IDC finding that 18.1 million devices were sold in the second quarter, an increase from the 5.6 million units that were sold the previous year during the quarter.
"Anytime Apple enters a new market, not only does it draw attention to itself, but to the market as a whole," said Ramon Llamas, research manager for IDC's Wearables team, in a press release. "Its participation benefits multiple players and platforms within the wearables ecosystem, and ultimately drives total volumes higher."
The report also highlighted that Apple's watchOS platform could also increase market shares in the quarters ahead. Announced at Apple's WWDC in June, watchOS will allow for native applications, which IDC notes, could have a similar effect the company's iPhones received when native apps became available.
Then, there is the recent deal with Best Buy that will expand the Apple Watch's availability from being sold in 300 to now all 1,050 of the retail stores by the end of September.
As more companies enter the wearables market, the gap between smart wearables like Apple Watch and the basic devices like Fitbit will grow over time.
Still, it appears people favor Fitbit, the report says, because it stays true to its simple values regarding health and fitness tracking instead of also promising other smart capabilities.
Following Apple is Xiaomi, which shipped 3.1 million units with 17.1 percent of market share, followed by Garmin with 0.7 million units sold with 3.9 percent market share and Samsung with 0.6 million units sold and 3.3 percent of market share.
Photo: William Hook | Flickr
