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etvfutures.com November 22, 2017


Watch Series 3 Helps Apple Inc. Reclaim Its Wearables Crown

15 November 2017, 12:53 | Lucia Cruz

Apple Watch retakes lead of wearables market, Xiaomi second: report

Report: Apple is back to being the world's top wearable maker

As Canalys analyst Jason Low explained, "Strong demand for the LTE-enabled Apple Watch Series 3 has dispelled service providers' doubts about the cellular smartwatch not appealing to customers". For the end of 2017, Canalys expects a strong Q4 thanks to new models promising boosted performance and battery life, as well as seasonal sales for the Holiday period.

Launched in September, Apple Watch Series 3 played a major role in pushing Apple back to the top spot.

The only official metric that Apple (NASDAQ: AAPL) disclosed about Apple Watch during last quarter's earnings release was that the smartwatch enjoyed "unit growth of over 50% for the third consecutive quarter".

Apple sold the most smartwatches of any company in the second half of this 2017, according to Canalys, reclaiming its spot as the top wearables vendor and posting its strongest quarter this year so far. According to Canalys estimates, 800,000 Apple Watch units shipped in Q3 were cellular-enabled. In total, the overall wearable band market fell 2 percent year over year to reach 17.3 million units.

During Apple's latest financial conference call, Apple's CEO highlighted the Apple Watch in his opening statement. Domestic carriers are charging $10 per month to add a data plan for Apple Watch, which could be rather profitable, as actual data usage will probably be quite low.

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As for the others: Fitbit took third in Q3 2017 for 20 percent, while phone makers Huawei (six percent) and Samsung (five percent) were some way behind in rounding out the top five. "Apple and Samsung are increasing user stickiness and brand loyalty by adopting an ecosystem strategy, which includes wearables and audio accessories".

With an augmented reality (AR) headset in the works that would inevitably be considered a wearable as well, it could be just a matter of time before Apple officially breaks out wearables into a distinct reportable product segment.

After a short disruption by Xiaomi, Apple Inc.

At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02.



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