Over a 13% share of the global market
Apple (AAPL) ventured into selling wearable devices such as smartwatches to diversify its hardware business beyond the mature markets for smartphones and personal computers. The company currently does not disclose its wearable unit’s sales, saying only that its wearable revenue increased 50% YoY (year-over-year) in the fourth quarter of fiscal 2018, which ended in September.
But according to the latest report from IDC, Apple shipped 4.2 million wearable devices in the third quarter and captured 13.1% of the global wearables market, thereby ranking as the world’s second-largest wearables company behind Xiaomi. Apple’s share of the global wearables market expanded from 10.3% a year earlier.
Global market expanded 21.7%
Xiaomi shipped 6.9 million wearables, representing a 21.5% share of the global market. Fitbit (FIT), Huawei, and Samsung (SSNLF) captured 10.9%, 5.9%, and 5.6% of the global wearables market, respectively, in the third quarter, rounding out the top five wearable companies list.
Some 32 million wearable devices were shipped globally in the third quarter, showing that the wearables market had expanded 21.7% YoY in the period.
Watch approved for medical use
In addition to the Apple Watch, other products in Apple’s wearables category include AirPods and Beats products. The Apple Watch Series 4 was launched in September, and it was the first smartwatch approved for medical use. Last year, Apple was selected alongside Fitbit, Samsung, Johnson & Johnson (JNJ), and Alphabet’s (GOOGL) Verily to participate in a US federal government pilot program that could result in the faster approval of new digital health products.
The Series 4 device accounted for ~20% of Apple’s smartwatch shipments in the third quarter.