According to a new report from IDC, Xiaomi has gained the top spot in the wearable market for the third quarter of 2018. The Chinese manufacturer has had plenty of success thanks to the Mi Band fitness wearable. The very first Mi Band became instantly popular for its value for money. The band came with basic features such as sleep tracking, step counter, and vibrate for incoming calls. That was pretty much it and while it wasn’t very accurate, Xiaomi sold millions of these. The Mi Band was super cheap and the latest variant also has a similar formula, but with better features.
Xiaomi Mi Band 3 Tops Wearable Market in Q3 2018
The Xiaomi Mi Band 3 is a great fitness band if you’re on a budget. It has a larger display compared to the Mi Band 2 and comes with a better heart rate scanner. The step counter is more accurate now and the battery life is still great. The Mi Band 3 is currently sold in India for INR 1,999, but is usually out of stock due to the demand.
Unsurprisingly, the Mi Band 3 helped Xiaomi gain the top spot in the Wearable Market for Q3 2018. The company is very well known in China and India, where most of its sales come from. However, Xiaomi has now expanded to other regions such as the Middle East, Europe, and Africa. Thanks to the expansion, the company managed to sell more of the bands.
In the third quarter of 2018, global wearable shipments crossed 32 million, up by 21.7 percent from the same quarter last year. Most of the sales came from the Asia Pacific markets. In the United States, there was a 0.4 percent decline in sales of wearables compared to last year. Xiaomi claimed a market share of 21.5 percent in the wearables market. It sold 6.9 million units of the Mi Band wearable to gain the top spot. Compared to last year, the company saw a 90 percent. Jitesh Ubrani, the senior research analyst for IDC Mobile Device Trackers, stated:
“Many of the new basic wearables include features like notifications or simple app integrations that bleed into smartwatch territory. This has helped satiate consumer demand for more capable devices while also maintaining average selling prices in a market that faces plenty of downward pressure from low-cost vendors and declining smartwatch pricing.”
He went on to suggest that brands will eventually drive customers towards smartwatches as the price gap reduces. Fitness bands and smartwatches are two separate products. In the Smartwatch market, Apple and FitBit lead thanks to their advanced features and focus on both fitness and health. The latest Apple Watch Series 4, for example, has an ECG reader that has been approved by the FDA in the US. Wearables are targeting the healthcare segment and that’s what sets apart the cheaper fitness bands from the more expensive smartwatches. However, China’s market is much larger than the US and the cheaper/basic fitness bands sell better here.
Other Top Brands in the Wearable Market
After Xiaomi, it was Apple who managed to grab the second spot. The latest Series 4 smartwatch brings several new features, bigger display and an ECG reader. However, the new series only accounted for 20 percent of the Watch sales, whereas the cheaper Watch Series 3 had the most sales. The fruit company 4.2 million units in Q3 2018 and had a market share of 13.1 percent.
Fitbit followed Apple closely with a 10.9 percent market share. It managed to sell around 3.5 million units of its wearables. Fitbit has seen a lot of success with its Versa, Charge 3, and Ace smartwatches. In the fourth spot, it was Huawei who sold around 1.9 million smartwatches. Its new product, the TalkBand B5 wristband, has been a success. Huawei also has its sub-brand Honor, which sells cheap wrist bands such as the Honor Band 4. Finally, Samsung was very close behind Huawei with 1.8 million units shipped and 5.6 percent marketshare.