Wearable gadgets like smartwatches captured the market with promoting the growing acceptance of upcoming technology at the end of last year. According to ‘International Data Corporation’, shipments of wearable gadgets of fourth quarter reached 27.4 million, with a growth of 126.9% from the same quarter in the year 2014.
Wearable devices are generally worn on the wrist to track to follow health related information like steps, sleep etc. Smartwatches today are like tiny computers which notify users regarding email, temperature etc., they also have ability to run various applications.
Fitbit has once again reached at the top of the market share with its 8.1 million devices shipped throughout the quarter. According to ‘International Data Corporation’, Fitbit has got the top position with 29.5% market share; Apple came in the second position with 15% share, and then came Xiaomi with 9.7% market share, followed by Samsung with 4.9% and Garmin with 3.5% market share.
Fitbit’s name is synonymous with wellness trackers and is usually alluded to as the “Kleenex of wearables”. Brand acknowledgment joined with its items that range generally in cost and features have promoted the organization to stay focused. Approximation with Apple and Xiaomi from the high and low-end of the wearable business sector has put the company in continuous pressure.
Assessment of IDC for Apple was to dispatch 4.1 million watches in the fourth quarter, while Strategy Analytics gauges put the number more like 5.1 million. But, regardless of the number, Fitbit drives Apple by a wide edge.
Xiaomi of China was able to gain success in the quarter with the help of its budget-friendly wearable devices with shipping of 2.7 million in the wearable business sector. According to ‘International Data Corporation’ cost of wearable devices of Xiaomi ranges from $11 (for counting basic step) to $13 (for capability of tracking steps and heart bit). The price of Xiaomi’s Mi Brand in US is $15. In comparison to 2014, an increase of 171.6% was found in the total shipment of wearable devices by various manufacturers in the year 2015, which was nearly 78.1 million.
Regardless of Fitbit’s authority, speculators rebuffed the organization after it discharged its quarterly profit on Monday. The organization’s shares collapsed 19% in the mid of the day share trading on Tuesday.
Ramon T. Llamas, Research Manager of International Data Corporation, recommended that to stay aggressive in a growing wearable devices market, companies need items that accomplish more than just giving step checks. It was a very good start to collect historical data like steps taken and burned calories. Now, prescriptive data similar to what else a client can do to carry on with a more beneficial life, combined with favourite applications such as ‘social media’, ‘news’, ‘navigation’ etc. will promote wearable devices more with attracting more customers.
Ramon T. Llamas also commented that neither Apple nor Fitbit still sold the product he was expected for. The door was open for new companies with right devices and with proper features to capture the market.