China's Xiaomi overtakes Apple to lead wearable band market

Xiaomi overtook Apple in the global wearable band market in Q2, according to an industry analyst.

The market grew 8 percent year on year in the second quarter, Canalys said in a research report.

Xiaomi topped the market with shipments of 3.5 million units, closely followed by US firm Fitbit, which shipped 3.3 million units, a 34-percent year-on-year decline, Canalys estimated.

Xiaomi founder Lei Jun said their band sales exceeded 18.5 million at a media conference held in Beijing on March 29, 2016.

Apple fell to third place with 2.7 million shipments.

The smartwatch market will grow in H2, driven by cellular-enabled smartwatches, with 12 million units forecast to be shipped by the end of the year, according to the report.

Xiaomi also posted record-high quarterly smartphone sales in the second quarter and aims to ship 100 million smartphones in 2018.

Xiaomi's brand logo

“Xiaomi captured 17 percent global market share and overtook Fitbit and Apple to become the world’s largest wearables vendor," said Neil Mawston, one of the researchers.

"Fitbit is at risk of being trapped in a pincer movement between the low-end fitness bands sold by Xiaomi and the fitness-led, high-end smartwatches sold by Apple,” he added.

Experts say the main reason Xiaomi has overtaken its competitors in the wearable market is because their products are cheaper while as efficient.

Companies compete to share an expanding smartwatch market.

(ASIA PACIFIC DAILY)