Apple Dethrones Fitbit as the Top Wearables Maker


Wearable device shipments are on the rise, as are Apple's sales, but Fitbit's numbers are declining and the company laid off over 100 employees earlier this year. Yes, Apple Watch sales actually surged, from 2.2 million copies back in Q1 2016 to 3.5M this January - March timeframe, although they predictably declined sequentially, from 4.6 mil during the holiday season.

In the first quarter of a year ago, Apple shipped around 2.2 million wearables; hence, it's a huge improvement for the tech company.

But analysts warned that the company which once dominated the wearable market may have already peaked.

"Apple captured 16% global marketshare and overtook Fitbit to become the world's largest wearables vendor". According to Strategy Analytics, Apple ousted Fitbit from the top position with 3.5 million wearables shipped during the first quarter of this year.

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Still, the main takeaway from this is that the once market leader, Fitbit, is now in trouble.

Apple dismissed talk of tanking sales during its second quarter earnings earlier this week, after it was revealed that Apple's so-called "other products", a lazily-named category that includes the Apple Watch and Apple TV, soar revenues jump 31 per cent year-on-year.

For the first quarter, global wearables shipments increased by 21% annually from 18.2 million previous year to 22 million units.

"Fitbit has lost its wearables leadership to Apple, due to slowing demand for its fitness bands and a late entry to the emerging smartwatch market", said Strategy Analytics researcher Cliff Raskind. Fitbit's shipments, revenue, pricing and profit are all shrinking.

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The survey released yesterday by Strategy Analytics showed Apple grabbed a 15.9 per cent share of the wearables market in the first quarter.

But for now, AAPL can enjoy the spotlight with Apple Watch sales up and topping both the smartwatch and overall wearables sales charts.

The figures prove what Apple CEO Tim Cook recently exclaimed in an investor call, that Apple has witnessed a major bump in Apple Watch sales, and it re-asserts the Cupertino firm's dominance in another tech industry.

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