BUSINESS INSIGHTS : The latest news, analysis, and trends about protection and care

May 14, 2017,  by Allianz Partners Business Insights

Connected objects: Smart watches are pushing Apple up to the first place

Apple has become the leader in the connected objects sector thanks in no small part to its Apple Watch. Their closest competitors are now fitness tracker manufacturers.

 

Californian mega-brand Apple is ubiquitous, with innovations conquering all sectors of the market. Connected objects are no exception, and thanks to its smart watch, Apple is now the global leader according to a recently published study by Strategy Analytics. In the first quarter of 2017, Apple cornered 15.9% of that particular market.

 

New Apple Watch Series 2 selling well in the USA

 

While the company does not publish sales figures for its Apple Watch, Strategy Analytics has estimated that turnover for this particular connected watch leapt by 59% year-on-year in the first quarter of 2017, with 3.5 million units sold.

"The new Apple Watch Series 2 is selling relatively well in the USA, the UK and indeed elsewhere thanks to an improvement in style, an intensive marketing campaign and a good in-store presence," explained Strategy Analytics director Neil Mawston.

 

Fitbit losing ground, Xiaomi catching up

 

Fitbit were sector leaders for a number of years thanks to their fitness trackers which measure physical exertion, but they have fallen to third place, with sales down 36% in the first quarter of 2017. Chinese competitor Xiaomi, who sell a cheaper tracker, are now up to second place with a 15.5% market share, with Fitbit now down to 13.2%.

 

Strategy Analytics: Apple shipped 3.5M Watches In Q1 2017, capturing 15.9% market share in wearables,… https://t.co/v4Y3EFPYXY #technews pic.twitter.com/9QP7k6t4zT

— The Stiel Report™ (@stieldirect) May 7, 2017

 

"Fitbit lost first place to Apple due to a slowing in demand for fitness trackers, and also since they came late to the connected watches market," said Strategy Analytics specialist Cliff Raskind. " Fitbit’s deliveries, revenue, prices and profits are all slipping at the moment and the company is going to have to put in the hard yards if they are going to turn the corner this year."

Total sales of connected objects in the first quarter of this year were up 21% at 22 million units, courtesy of increased demand and new models of smart watches.

 

Allianz Partners

Contact
Linked Topics
About Allianz Partners Business Insights