Apple Watch's Record-Breaking Quarter Was Opposite One of Fitbit's 'Largest Declines Ever'

[MacRumors]

Apple Watch Series 1 and Series 2 have proven to be a "magnificent success" for Apple, which recorded its "best quarter ever" in the wearables market, according to the latest data from research firm IDC.

Fourth quarter shipments reflected in millions (Source: IDC)​

Apple shipped an estimated 4.6 million Apple Watch units in the fourth quarter of 2016, up from an estimated 4.1 million in the year-ago quarter, according to IDC. Its share of the wearables market, which includes basic fitness trackers, was an estimated 13.6%, down slightly from 14.1% in the year-ago quarter.

Apple closed the gap with wearables market leader Fitbit, which experienced one of its "largest declines ever" in the fourth quarter. Fitbit shipped an estimated 6.5 million fitness trackers in the quarter, down from 8.4 million in the year-ago quarter. Fitbit's market share dropped from 29% to 19.2%, said IDC.

Apple has been heavily marketing the Apple Watch's fitness capabilities as of late, rather than positioning it as a fashion accessory, and this shift in focus has allowed it to grow its presence in the wearables market, according to IDC:

Apple Watch Series 1 and Series 2 proved to be a magnificent success for the company as it was the company's best quarter ever in the wearables market. The lower entry price point and the inclusion of GPS on the Series 2 along with a completely revamped user interface have helped the company grow its presence. Apple is one of the few companies that has been able to quickly refocus its watch to gain traction in the consumer market and has also been leading the charge on introducing the smartwatch category to the commercial segment.

Xiaomi finished second, between Fitbit and Apple, as its Mi Bands are priced well below most competing wearables, allowing the Chinese company to capture 15.2% market share based on an estimated 5.2 million shipments in the quarter. Xiaomi's market share rose considerably from 9.1% in the year-ago quarter.

Samsung was the fifth largest wearables vendor in the fourth quarter with an estimated 1.9 million shipments and 5.6% market share.

IDC estimates that Apple Watch shipments totaled 10.7 million in 2016 for an estimated 10.5% market share, down from an estimated 11.6 million shipments and 14.2% market share in 2015. The annual data has the same top five rankings as the quarterly data: Fitbit, Xiaomi, Apple, Garmin, and Samsung.

Annual shipments reflected in millions (Source: IDC)​

It is important to acknowledge that these are estimated figures, and that shipments do not necessarily reflect sales. Strategy Analytics said Apple Watch shipments totaled 5.2 million last quarter, which is roughly 600,000 units higher than IDC's estimate, so there is clearly variation between datasets.

Apple does not officially disclose Apple Watch sales, instead grouping the device under its "Other Products" category in earnings results.

Apple only elected to share that the Apple Watch set all time sales records during the first quarter of its 2017 fiscal year, with CEO Tim Cook noting holiday demand was "so strong" that Apple "couldn't make enough."

Article Link: Apple Watch's Record-Breaking Quarter Was Opposite One of Fitbit's 'Largest Declines Ever'

 

[bluespark]

I'm certainly loving mine -- one of my most satisfying Apple purchases in years, maybe ever.

 

[BoltmanLives]

Cute pillow watch

Apl : King of the SmartWatches revenue (other)

 

[1applerules1]

Fitbit can't do nearly as much as the Apple Watch. So this makes sense.

 

[ILikeCoffee7]

Yes, I stopped my FitBit HR this year when I got my Apple Watch Series 1. Love it!

 

[pika2000]

Of course, this is knowing the fact that AW only work with iPhones, while the rest of the competitors are platform agnostic. So being able to garner that marketshare when your base market is already smaller than everybody else is quite a feat. Gotta admit that whether you like the AW or not.

 

[hwilson39]

Just wait until people realize that these watches last 3 years, not 50 years like other watches

 

[dannyyankou]

Fitbit's decline was inevitable given this is a relatively new product category and all the new competitors on the market. But now, they must take cues from Apple and Samsung or else they'll be the next Blackberry.

 

[pika2000]

Just wait until people realize that these watches last 3 years, not 50 years like other watches

Well, many of those other watches do cost more than the AW. Considering I get more utility from the AW than a standard branded watch, the AW provides better value for me.

 

[JeffyTheQuik]

Just wait until people realize that these watches last 3 years, not 50 years like other watches

Yep, and those 50 year old watches do what they did 50 years ago.

Tell time.

If you want your watch to do more than than time related things, the 3 year watch is your new paradigm.

 

[44267547]

Even though Apple won't release sales numbers, I still see the Apple Watch as a huge success in the wearable market. The health/fitness being a strong contender against Fitbit.

 

[thefredelement]

Apple Watch isn't bad, I don't think the fit bit does enough to separate itself from the Apple Watch. As an athlete I prefer to use a dedicated watch for athletic activities, which is a space where the Apple Watch fails as compared to things offered by Polar, Garmin, etc. I do wear my AW while not being active though, it's handy enough but I don't miss it when I forget it.

I will be getting the Garmin Fenix 5x when it's released and wonder if I'll have the same inclination to put the Apple Watch back on after using the Garmin.

 

[gugy]

I was very skeptical. I bought my Nike+ in December and while I do not love the design of it, I do enjoy it using keeping track of my swimming workouts and unlocking my Mac every time is in sleep mode.
It has been pushing me to swim harder and stay motivate.

 

[jdillings]

Once again, you're comparing apples to oranges. A Fitbit is not a smart watch.

 

[Ad13]

Fitbit's decline was inevitable given this is a relatively new product category and all the new competitors on the market. But now, they must take cues from Apple and Samsung or else they'll be the next Blackberry.

Partially this, but I also think Fitbit's own arrogance has contributed to their decline. They refuse to support Apple Health integration (even though they said they would) and forced to their users to choose an ecosystem. I chose Apple. It appears that many others did also. I ditched Fitbit and I never looked back.

 

[ILikeCoffee7]

Once again, you're comparing apples to oranges. A Fitbit is not a smart watch.

I'm sorry but when I got my Apple Watch my Fitbit usage went to ZERO

 

[KALLT]

Once again, you're comparing apples to oranges. A Fitbit is not a smart watch.

They are both wearables and competing for the same space on the wrist. It clearly shows that the demand is not in smartwatches, but in sports bands.

 

[MrXiro]

Fitbit's decline was inevitable given this is a relatively new product category and all the new competitors on the market. But now, they must take cues from Apple and Samsung or else they'll be the next Blackberry.

They're the new "Pebble".

 

[npmacuser5]

Just wait until people realize that these watches last 3 years, not 50 years like other watches

All of my old watches are sitting in a drawer, good chance they will never be used. Why do I have several old watches and not one? New styles, features, times change, and wear are a few reasons I bought new ones. They are all functional, not collectors items, replaced with my Apple Watch. Do do I need any Watch to last 50 years, No. At this point my Apple Watch more then meets my current needs. Years from now it also will be in the drawer.

 

[pika2000]

It would be interesting to see the marketshare trend by platform for each brand. Eg. are the decrease of Fitbit's marketshare coming from Android, iOS, or both? AW only works on iPhones, so there could be other explanations other than users switching to AW.

 

[mazz0]

"rather than positioning it as a fashion accessory"

They might have more luck with it as a fashion accessory if they start a bloody face store! I WANT TO MAKE MY OWN FACES!

I wonder if there's a secret API that they use for special cases like the Nike one, which I could access and load onto my Watch through XCode...

 

[jdillings]

Apple Watch isn't bad, I don't think the fit bit does enough to separate itself from the Apple Watch. As an athlete I prefer to use a dedicated watch for athletic activities, which is a space where the Apple Watch fails as compared to things offered by Polar, Garmin, etc. I do wear my AW while not being active though, it's handy enough but I don't miss it when I forget it.

I will be getting the Garmin Fenix 5x when it's released and wonder if I'll have the same inclination to put the Apple Watch back on after using the Garmin.

This is Apple's problem with the fitness market. The Apple Watch can't compete on the high end or the low end. The high end is dominated by Garmin who make the best GPS watches for running, cycling, swimming, etc. If you are serious about any of these sports, you probably already have a Garmin watch.

The low end is dominated by Fitbit who make a relatively cheap and simple fitness tracker for those who just want to count steps and compete with their friends. The Apple Watch offers too much functionality they don't need and would never use and is too expensive.

 

[unlinked]

Partially this, but I also think Fitbit's own arrogance has contributed to their decline. They refuse to support Apple Health integration (even though they said they would) and forced to their users to choose an ecosystem. I chose Apple. It appears that many others did also. I ditched Fitbit and I never looked back.

I think you can argue it both way when it comes to integrating into the Apple ecosystem. If they had integrated they would have been even more replaceable by the Apple Watch. The way they went mightn't have worked out but the alternative might not either.

 

[MrXiro]

They are both wearables and competing for the same space on the wrist. It clearly shows that the demand is not in smartwatches, but in sports bands.

I think it has less to do with the market demand as it does pricing. An entry level Apple Watch is 3X the retail cost of the entry level Fitbit.

Were Fitbits in the same pricing arena as an Apple Watch they would never sell.

I actually wear both 1st Gen AW and a Fitbit Alta. I like Fitbit for their social aspect. It's almost a social media network that lets you compete with friends. Apple Watch lacks that feature. I can see my friends stats and compete but the competition aspect isn't there.

AW IS a superior product though and one that sees more use despite that I wear it less than the Fitbit because I can check my texts, reply, see emails and control my music and various apps.

 

[Dave245]

I love my Apple Watch, i use it everyday for running and general health and fitness. It's also great when using Apple Pay and getting txt alerts. I'm looking forward to seeing what they do with the Apple Watch series 3, since I'm on the first generation I will probably upgrade. The only thing I'm critical of is the battery life, I think it could be a lot better especially for exercising which makes it drain quicker.