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Wednesday, May 25, 2016

IDC: growing wearables market with 19.7 million units in Q1 2016. Fitbit dominates

Of the wearable market showed a rising trend in the first three months of 2016, is confirmed by the recent statistics released by IDC. Deliveries of wearable devices reached 19.7 million units in the first quarter of 2016, value which translates into a growth of 67.2% over the same quarter in 2015.

To determine the positive result was boosted by a combination of factors, first luogol'arrivo of new models and price reductions of the devices already on the market. A maturing market with a trend that continues to be positive, as confirmed by Ramon Llamas, research manager for IDC:

The positive news is that the wearable market continues to mature and expand. The wearable we have today are several steps ahead compared to those we had when this market began, and are increasingly influenced by the shape, features and fashion.

Like any market segment growing, there are some negative effects for companies that participate, resulting from an increasingly tight competition.

The downside is that it is becoming a crowded market, not everyone is guaranteed success.

A reference, the latter, which can be put into practice remembering the events of startup notes forced to pull the oars, announcing staff cuts (think Pebble) or, even worse, the close of business.

Other data useful to understand the evolution of the segment relates to the net bifurcation with the emergence of two distinct subcategories of product: on the one hand that of wearable with basic functionality, ie those designed for the execution of a few specific tasks, such as the Fitness / motion tracking or monitoring of sleep, which usually coincide with devices that do not allow the installation of third-party apps, and, on the other side, that of the smartwatch.

Examining in more detail the performance of the five most important companies operating in the sector, or those who hold the most market share, the IDC analysis focuses immediately on Fitbit, which in the quarter in question has consolidated its leadership position the segment with the launch of new models and High Blaze. A statement of the proposed new Fitbit followed by a contraction in sales of previous models (Surge, Charge, Charge HR and Flex). Brand strength, product portfolio and a well-structured the effective price policy are the elements that have allowed Fitbit reaching the finish line, according to IDC.

Xiaomi is currently the second most important producer of wearable, position reached unseating Apple. The Chinese manufacturer is particularly active in the field of wearable basic marketed at very aggressive prices. IDC points out, however, that the success of Xiaomi is mainly due to sales in the Chinese market, while it is still far the company's international success.

Apple lost the first second position, but, as I said, continues to market the most widespread smartwatch. the Apple Watch has crossed the finish line of his first year of life, without a renewal of the offer, except for the marketing of the new straps. The reduction of the sale price announced in the spring helped it boost sales in anticipation of the new model.

In fourth position it is that Garmin has managed to overcome Samsung with a portfolio increasingly structured and based on the fitness tracker dedicated to sports. Also noteworthy innovative products with viewer Varia Vision, the wearable display that interfaces with Garmin cyclo-computers to provide real-time information to the rider.

In fifth place, tied, Samsung and BBK, both with 0.7 million units shipped in the quarter, or 3.6% of the total. The Korean manufacturer has managed to carve out a space in the smartwatch industry Gear Gear S2 and S2 Classic that differ from the main competing proposals for the presence of the built-in telephone connectivity. At the same time, the consistency of the park app is not comparable to that of the app for Apple and Android Wear Watch. BBK is able to match the performance of Samsung thanks to the success in the Chinese market with its children's wearable, recently restored with the arrival of BBK YO2.

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