Apple Watch Outpaces Wearables Market Growth to Reach Top Spot

Apple shipments rose 38.4% in the second quarter

Market research company IDC reported that Apple (AAPL) Watch shipments rose 38.4% YoY (year-over-year) to 4.7 million units in the second quarter, much higher than overall wearables market growth of 5.5% in the period.

Apple’s share in the wearables market rose from 13% in the second quarter of 2017 to 17% in the second quarter 2018 and replaced China’s (FXI) Xiaomi as the leading player in the space.

Apple Watch Outpaces Wearables Market Growth to Reach Top Spot

Other top players

Xiaomi also outpaced the wearables market and managed to ship 4.2 million units in the second quarter, up from 3.5 million units in the previous year. Its share also rose from 13.3% to 15.1%. Fitbit (FIT) shipments fell drastically by nearly 22% to 2.7 million units in the second quarter. Its market share fell from 12.8% to 9.5%.

Chinese giant Huawei is also quickly making inroads in the wearables market. It increased its shipments by 118% in the second quarter, more than doubling its market share from 3.1% to 6.5%. Garmin (GRMN) was the fifth-largest player with a share of 5.3%.

Apple unveiled the Apple Watch Series 4 during its annual keynote event yesterday. The reveal drove Fitbit stock down 7%. It will be interesting to see whether the Apple Watch 4 can increase Apple’s market share in the wearables space.

Apple dominates the smartwatch segment

Counterpoint Research estimates show that Apple is the number one player in the global smartwatch segment with a share of 41%. The second-largest player is Fitbit with a share of 21%, followed by Fossil (FOSL), AMAZFIT, Garmin. and Samsung (SSNLF) with shares of 4%, 4%, 3%, and 2%, respectively.