Wearables market up 35% in Q1 2018 as Apple and Xiaomi maintain lead

Via Canalys Newsroom

May 23, 2018

Palo Alto, Shanghai, Singapore and Reading (UK) – Wednesday, May 23 2018

Wearable band shipments grew 35% year on year to 20.5 million units in Q1 2018, driven by strong demand for health-centric devices. Smartwatches accounted for 80% of wearable band revenue, up from 74% in Q1 2017. In terms of shipped units, smartwatches** accounted for **43% in Q1 2018. Apple emerged as the top vendor, shipping 3.8 million Apple Watches; Xiaomi, whose Mi Bands account for more than 90% of its shipments, was close behind, shipping 3.7 million units. Fitbit, Garmin and Huawei, vendors selling a mixed portfolio of fitness wearables, rounded out the top five.

Apple Watch shipments stabilized after a record quarter for the company and it matched its Q1 2017 number. “Key to Apple’s success with its latest Apple Watch Series 3 is the number of LTE-enabled watches it has been able to push into the hands of consumers,” said Canalys Senior Analyst Jason Low. “Operators welcome the additional revenue from device sales and the added subscription revenue for data on the Apple Watch, and the list of operators that sell the LTE Apple Watch worldwide is increasing each month.” Apple represents 59% of the total cellular-enabled smartwatch market. “While the Apple ecosystem has a strong LTE watch offering, the lack of a similar product in the Android ecosystem is glaring. If Google decides to pursue the opportunity with a rumored Pixel Watch, it would jump-start much needed competition in this space.”

Garmin is now the second largest smartwatch vendor after Apple, with 1 million smartwatches shipped in the last quarter. “Garmin’s transition to smartwatches has been swift as it focuses its GPS expertise on catering to endurance athletes and outdoor enthusiasts,” said Vincent Thielke, Research Analyst at Canalys. “It brought much needed improvements by adding features such as Garmin Pay to the Forerunner and vívoactive series, and now offers onboard music storage on the latest Forerunner 645. While launching services is a great way to build stickiness, Garmin must ensure it continues to enhance them based on real use-cases. The exercise could prove costly should Garmin be the sole driver of such an ecosystem.”

With global smartwatch replacement rates increasing, Fitbit is racing to get its users to upgrade to smartwatches and to attract new users amid fierce competition. “Fitbit is betting on its newly launched Versa smartwatch, while introducing female health tracking to expand its addressable market,” said Thielke. According to the latest Canalys estimates, smartwatches (including the Blaze) made up 24% of Fitbit’s wearable band shipments. “Collaboration between Fitbit and Google on the Cloud Healthcare API will help Fitbit get into healthcare systems, and that is a positive move. But Fitbit’s immediate cause for concern will be satisfying investors that it is selling more wearables, something it may not be able to do.”

Wearable band quarterly estimate and forecast data is taken from Canalys’ Wearable Band Go-To-Market Analysis service.

For more information, please contact:

Canalys EMEA: +44 118 984 0520

Ben Stanton: ben_stanton@canalys.com +44 118 984 0525

Canalys APAC (Shanghai): +86 21 2225 2888

Jason Low: jason_low@canalys.com +86 21 2225 2816 Mo Jia: mo_jia@canalys.com +86 21 2225 2812

Canalys APAC (Singapore): +65 6671 9399

TuanAnh Nguyen: tuananh_nguyen@canalys.com +65 6671 9384 Rushabh Doshi: rushabh_doshi@canalys.com +65 6671 9387

Canalys Americas: +1 650 681 4488

Vincent Thielke: vincent_thielke@canalys.com +1 650 656 9016

About Canalys

Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

Receiving updates

To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please complete the contact form on our web site.

Alternatively, you can email press@canalys.com or call +1 650 681 4488 (Palo Alto, California, USA), +65 6671 9399 (Singapore), +86 21 2225 2888 (Shanghai, China) or +44 118 984 0520 (Reading, UK).

For more information:

e-mail press@canalys.com Or call: Canalys APAC: Singapore Tel: +65 6671 9399 or Shanghai, China Tel: +86 21 2225 2888 Canalys Americas: Palo Alto, USA Tel: +1 650 681 4488 Canalys EMEA: Reading, UK Tel: +44 118 984 0520

PDF download

Media alert 230518 Smartwatch Q1 2018.pdf

Google beats Amazon to first place in smart speaker market

Third CEO confirmed for Canalys Channels Forum 2018: “Independent Intelligence”

This content extract was originally sourced from an external website (Canalys Newsroom) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Sign up to receive TelecomTV's top news and videos, plus exclusive subscriber-only content direct to your inbox.