Worldwide Wearable Markets Are Bullish

If the latest report by IDC is considered, smartwatches, which have long since tried to capture the public’s fancy, are showing a downward trend in sales. Apple and Samsung, which are considered to be the major players in this category are also struggling to keep up with this fall in demand.  Other players that are in the same boat are Lenovo, Huawei and LG. The report mentions that although the smart watches still come under niche category segment, it is already on a declining path.

But Fitness Trackers Are Going Solid

When it comes to wearable fitness trackers, Fitbit, Xiaomi, Apple, Garmin and Lifesense are the five companies that are leading the competition. The market for basic wearable (fitness trackers) grew by 48.8% in 2Q16 in comparison to its 2Q15 figures. Although, same can’t be said about smart wearables whose market declined by 27.2% this time over 2Q15.

Reasons for This Decline

The reasons could be many. One of them can be the pricing factor. Fitness wearable are half the price of what smartwatches cost. A basic smartwatch costs $300 while the former costs $100. Also, people are still confused about the need for a smartwatch. Very few of the market segment has tried it and the product is still counted in the niche segment after years since the launch.

Brand-wise Growth of Fitness Wearables Over 2015-1016

Garmin showed the maximum growth with 106.7% rise in units sold in comparison to last year. Fitbit showed a growth of 28.7% in sales over last year. Lifesense is another manufacturer that is gaining a lot of traction in this segment with its low-cost Mambo wearable tracker. This one can also connect with WeChat to share and receive data. It is shipping in China.

Do you think that smartwatches have a future in this kind of market and demand share? Share your thoughts in the comments section below.

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