According to the latest Worldwide Quarterly Wearable Device Tracker report by the International Data Corporation (IDC), growth continued in the global wearables market during 2Q18 with shipment volume reaching 27.9mn units – up c. 5.5% YoY. In terms of value, the market grew by 8.3% YoY to $4.8bn. By region, the mature markets (North America, Japan, and Western Europe) declined 6.3% YoY but emerging markets (EMs) including Asia/Pacific (ex. Japan), Central & Eastern Europe (CEE), Middle East & Africa, and Latin America, jumped 14% YoY, with basic wristbands still in high demand (due to their lower price) and smartwatches gaining traction.
The Apple Watch remained the best-selling wearable with 4.7mn shipments last quarter and capturing 17% of the overall global market. Apple remains just ahead of Xiaomi, which trailed Apple by 2 ppts in terms of market share and 500,000 units shipped in 2Q18. Xiaomi held the top spot in 2Q17 with a 13.3% market share – just above Apple’s 13% market share at the time. This past quarter Xiaomi continued to dominate the low-end market with its Mi Band devices (priced at below $30) and children’s smartwatches. The IDC writes that demand for its LTE-equipped Series 3 device largely drove Apple’s wearable sales in 2Q, noting that the device received a number of discounts at US big-box retail stores such as Best Buy, which may have led to a surge in consumer purchases. Refurbished versions of the Apple Watch Series 3 were also made available on Apple’s retail site from February.
Wearables shipments and market share, 2Q18 vs 2Q17:
Wearables market share, 2Q18: