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15 November 2017, 12:55 | Bernard Bryant
Apple Watch retakes lead of wearables market, Xiaomi second: report
Armed with his kitesurf and Apple Watch 3 on his wrist, one John Zilles took against the waves on a new underwater hydrofoil wing, but about a mile in, he wiped out, and couldn't get his heavy kit airborne again. In contrast, market researchers like IDC do not include wireless headphones in the wearables category unless they include other additional features, such as health/fitness tracking, integrated artificial intelligence (AI) that isn't just coming through a paired smartphone, augmented audio, or real-time translation.
Chinese firm Xiaomi slipped to the second spot with 3.6 million wearables, while Fitbit remained at the third place with 3.5 million units. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The report attributes part the success to the new Apple Watch Series 3, which hit global sales as high as 3.9 million. Their increase in third quarter shipments was, however, more than offset by slowing demand for fitness trackers.
Despite strong shipments, the AppleWatch Series 3 did not reach its full potential in Q3.
Offering a "tetherless" experience along with highlighting the health features of the app has surely worked in favor of the US firm. "In fact, our entire wearables business was up 75% year over year in the fourth quarter and in fiscal 2017 already generated the annual revenue of a Fortune 400 company".
"Strong demand for the LTE-enabled Apple Watch Series 3 has dispelled service providers' doubts about the cellular smartwatch not appealing to customers", said Canalys analyst Jason Low. The researcher estimates that approximately 800,000 Apple Watches shipped during the quarter - about a fifth - included cellular connectivity.
With holiday sales starting soon, the year 2017 is expected to be record-breaking for Apple's wearable division.
Evan Niu, CFA owns shares of Apple. Year to date, the stock is up over 49%, while in the last one-month, it is up over 10%.
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