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How Fitbit Managed to Get Back Some of Its Market Share in 3Q17

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Wearables market grew 7.3% in 3Q17

While the wearables segment (WEAR) seems to be at a standstill, the latest numbers from IDC (International Data Corporation) suggest that growth is back. According to IDC, global shipments of wearable products increased 7.3% year-over-year (or YoY) in 3Q17.

Global wearable shipments in 3Q17 were 26.3 million units, according to IDC. However, sequentially, there was no growth in the global wearable devices shipped.

Chinese company Xiaomi maintained its position as the highest seller of wearables. But Fitbit (FIT) tied it for first place, both selling 3.6 million units during the quarter. Fitbit saw its shipments fall 33% YoY in 3Q17.

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Fitbit’s Ionic helped it gain some market share in 3Q17

Reports suggest that smartwatches are gaining popularity compared to lower-end products. Apple’s (AAPL) smartwatches saw a 52.4% rise in shipments YoY in 3Q17. Its new smartwatch, the Apple Watch 3, has LTE (Long-Term Evolution) connectivity and can be used to receive calls and notifications even if not tethered to an iPhone.

Fitbit released its first smartwatch, the Ionic, earlier this year, in an attempt to gain back market share. While the Ionic was not as popular as Fitibit hoped, it did well enough to gain some ground it had lost to Xiaomi.

Huawei was a new entrant, with the Chinese company selling 1.6 million wearable devices during the quarter. That caused Garmin (GRMN) to slip back to fifth place, as shipments fell 3.3% YoY in 3Q17. Meanwhile, Samsung (SSNLF) lost its spot in the top five.

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