The worldwide wearable device market keeps growing, having recorded its eighth consecutive quarter of steady growth in the first quarter of 2015, according to the latest numbers from the analyst house IDC.
“It [the wearables market] demonstrates growing end-user interest and the vendors’ ability to deliver a diversity of devices and experiences,” said Ramon Llamas, research manager for wearables at IDC. “In addition, demand from emerging markets is on the rise and vendors are eager to meet these new opportunities.”
In total, 11.4 million wearables shipped during the first three months of the year, representing a 200% increase from the 3.8 million seen in Q1 2014.
More than 40% of devices now have a below-$100 price tag.IDC noted that price erosion has been “quite drastic,” with more than 40% of devices now having a below-$100 price tag. This, the research firm argues, has enabled the top 5 vendors to grow their dominance of the market to three quarters from two-thirds in a year.
Apple Watch
Apple’s entrance to the market already has big implications; in its IPO filing, the market leader Fitbit noted about the potential threat, adding that its portfolio of devices (rather than a single product) will help it keep its (dominant) market share.
“The Apple Watch will likely become the device that other wearables will be measured against…”“What remains to be seen is how Apple’s arrival will change the landscape. The Apple Watch will likely become the device that other wearables will be measured against, fairly or not,” Llamas said. “This will force the competition to up their game in order to stay on the leading edge of the market.”
Additionally, Apple will “test consumers’ willingness to pay a premium for a brand or product that is the centre of attention,” according to Jitesh Ubrani, IDC’s senior research analyst.
Xiaomi’s rise
Xiaomi is the rising star in this market, having kicked off the year by “blasting through the one million unit mark” with its Mi Band. Said fitness band only started shipping in the second half of 2014 and has already seen a wide adoption due to its affordable price.
Although the company is pulling most of its revenues from China, it has global aspirations and will likely be entering other markets in the near future.
As for the other players, Fitbit is still the number one device maker, Samsung is forth, while Jawbone has managed to beat Pebble and Sony for the fifth position.