Proving the Business Case for the Internet of Things

Xiaomi overtakes Apple and Fitbit in wearables market

Steve Rogerson
August 15, 2017

Chinese company Xiaomi has overtaken Apple and Fitbit to become to become the world’s largest wearables vendor, according to Strategy Analytics.
Global wearables shipments reached nearly 22 million units in the second quarter of 2017. Xiaomi captured 17 per cent marketshare and became the world’s largest wearables vendor for the first time ever, overtaking Fitbit and Apple.
Global wearables shipments reached 21.6 million units in Q2 2017, rising eight per cent annually from 20.0 million in Q2 2016. Strong demand for low-cost fitness bands in China and premium smart watches across the USA drove the increase.
Xiaomi shipped 3.7 million wearables worldwide in Q2 2017, rising 23 per cent annually from 3.0 million units in Q2 2016. Xiaomi captured 17 per cent global marketshare and overtook Fitbit and Apple to become the world’s largest wearables vendor.
“Xiaomi’s Mi Band fitness trackers are wildly popular in China, due to their highly competitive pricing and rich features such as heart-rate monitors, step-counters and calendar alerts,” said Neil Mawston, executive director at Strategy Analytics.
Fitbit shipped 3.4 million wearables for 16 per cent marketshare worldwide in Q2 2017, almost halving from 29 per cent a year ago.
“Fitbit is at risk of being trapped in a pincer movement between the low-end fitness bands sold by Xiaomi and the fitness-led, high-end smartwatches sold by Apple,” said Mawston.
“Apple shipped 2.8 million wearables worldwide in Q2 2017, growing 56 per cent annually from 1.8 million in Q2 2016.
“Apple has for now lost its wearables leadership to Xiaomi, due to a lack of presence in the sizeable fitness band subcategory,” said Cliff Raskind, director at Strategy Analytics. “However, the rumoured upcoming Watch Series 3 launch with enhanced health tracking could prove to be a popular smartwatch model and enable Apple to reclaim the top wearables spot later this year.”