Chinese tech giant Xiaomi has bagged the number 2 spot becoming the second largest wearables manufacturer, according to a new report by IDC. The company recently launched its fitness tracker the Mi Band, selling 2.8 million units in the first quarter of this calendar year, accounting for a one-quarter of all shipments.
The report further stated that Fitbit bagged the top spot with 3.9 million units sold accounting for 34.2 percent of the total market share. Garmin comes next behind Xiaomi selling 700,000 units while Samsung was ranked fourth with 600,000 units shipped, and Jawbone came fifth selling 500,000 devices. IDC also noted that Pebble and Sony just missed out on featuring in the top five.
In total, 11.4 million wearable devices were sold globally in the first quarter, a category that includes fitness trackers and smartwatches, marking a 200 percent rise from 3.8 million in the first quarter of 2014.
“Bucking the post-holiday decline normally associated with the first quarter is a strong sign for the wearables market,” said Ramon Llamas, IDC’s research manager for the wearables sector.
The Mi Band’s success primarily lies in its pricing, costing just under $20. The most drastic change from a year ago is the availability of devices such as Jawbone Up and Misfit Flash which cost around $50, and have more or less the same features as one would find in a wearable costing over $100.
“As with any young market, price erosion has been quite drastic,” said Jitesh Ubrani from IDC. “We now see over 40% of the devices priced under $100, and that’s one reason why the top five vendors have been able to grow their dominance from two-thirds of the market in the first quarter of last year to three-quarters this quarter.”
The data published does not take into account the sales of the Apple Watch, which has already taken the wearables market by storm, launched in the month of April.
“What remains to be seen is how Apple’s arrival will change the landscape,” added Llamas. “The Apple Watch will likely become the device that other wearables will be measured against, fairly or not. This will force the competition to up their game in order to stay on the leading edge of the market.”
Analysts have already predicted that Apple’s debut smart wearable has already sold more than 2.3 million units since pre-orders began while future estimates suggest total Apple Watch sales to go as high as 30 million units. This would obviously make Apple the top wearable manufacturer.