Wearable Shipments Grow 10%, Smartwatches 61%

James Marshall
September 1, 2017

On the other hand (no pun intended), smartwatch shipments rose at an annual rate of 60.9% in the second quarter.

While the wearables field is proving a tough space for many companies, smartwatches are apparently doing quite well. That number includes a small - almost one percent - but notable first time drop in annual growth for basic wearables, like most Fitbit trackers, that don't run third party apps. Shipments for the shoes were immaterial during the quarter though IDC anticipates this to gradually grow as Xiaomi gains traction in the clothing/apparel industry. "This is where companies like Apple and Fitbit have the potential to maintain their lead as their investments in the tracking and perhaps diagnosing of diseases will be a clear differentiator from low-priced rivals". The second quarter of 2017 was a godawful period for Fitbit as the 3.4 million wearable units shipped by the company was a drop of 40.9% from the 5.7 million the company shipped during the same quarter past year.

"Sales of Apple Watch were up over 50% in the June quarter, and it's the number one selling smartwatch in the world by a very wide margin", Apple CEO Tim Cook boasted during the company's recent quarterly conference call with analysts, according to a Seeking Alpha transcript of the event. Fitbit is broadening its product lineup to include smartwatches. This transition means that Fitbit is losing focus, which just might be the reason behind its year-over-year struggle.

Fossil entered the top 5 for the first time and much of this is credited to the acquisition of Misfit in late 2015. The 1 million wearable units it shipped in the quarter was an impressive increase of 217.9% year-over-year. This has boded well for Apple as the company has been slowly expanding its reach among health insurance providers.

"When we first introduced the vívomove a year ago, it was geared towards customers who wanted a attractive timepiece first and activity tracking functions second", Dan Bartel, Garmin vice president of worldwide sales, said in a statement.

Studies consistently point to smartwatches overtaking fitness trackers as time marches on, as additional features relating to health and fitness migrate into smartwatches. "Just a year ago only 24.5 percent of all wearables had embedded Global Positioning System while today that number has reached nearly 41.7 percent". "There is growing interest from the medical industry to adopt wearables and consumer expectations are also on the rise".

Fossil's massive umbrella of watch brands has taken to the smartwatch life, releasing what feels like hundreds of variations in the past year.

Tom Tom didn't announce new devices, but added new features to its existing device line: Fitness Age and Fitness Points, two new ways for users to measure and track their fitness, and personalized workouts.

Other reports by Click Lancashire

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