In a significant shift in the wearables market, Xiaomi has leapfrogged Apple and Fitbit to become the top seller of wearable devices worldwide for the first quarter of 2017. According to a recent report by Strategy Analytics, Xiaomi shipped an impressive 3.7 million units in Q2 2017, surpassing Apple’s sales of 2.8 million units and Fitbit’s sales of 3.4 million units.
Xiaomi’s Rise to the Top
Xiaomi’s resurgence in the wearables market can be attributed to its aggressive pricing strategy and competitive product offerings. The company’s Mi Band, priced as low as $14.99 in the US, has been a major contributor to its success. Xiaomi’s wide range of products, including heart-rate monitors and alerts, have appealed to consumers looking for affordable and feature-rich wearables.
Fitbit’s Decline
In contrast, Fitbit’s sales have declined significantly, with a 40% drop in Q2 2017 compared to the same quarter last year. The company’s market share has also cratered from 29% to 16%. Fitbit’s position in the market is becoming increasingly uncertain, with Strategy Analytics warning that it may be trapped between Xiaomi’s low-end fitness bands and Apple’s premium smartwatches.
Apple’s Future Plans
Strategy Analytics believes that Apple’s next Watch model, which may include extended health tracking capabilities, could help the company reclaim the top spot. However, for now, Apple’s lack of health band options is keeping it behind Xiaomi in terms of sales.
Xiaomi’s Global Expansion Plans
Xiaomi has had a resurgent 2017 so far, bouncing back from two disappointing years in which it struggled to maintain once-explosive growth and missed sales targets. The company’s push into offline retail in China and progress in India, where it cracked $1 billion in revenue last year, have contributed to a more optimistic outlook this year.
CEO Lei Jun’s Optimism
In an interview with Strategy Analytics, Xiaomi CEO Lei Jun expressed his optimism about the company’s growth prospects. He stated that Xiaomi has reached "a major inflection point in its growth" and is now poised for further expansion into new markets.
Xiaomi’s Offline Retail Strategy
Xiaomi’s offline retail strategy has been a key contributor to its success in China and India. The company has partnered with local retailers to offer its products in physical stores, making it easier for consumers to purchase its devices.
Global Expansion Plans
Xiaomi has secured a $1 billion loan last month, which will help the company further its global expansion plans. With this funding, Xiaomi is expected to increase its presence in new markets and solidify its position as a leading player in the wearables market.
Key Takeaways
- Xiaomi has surpassed Apple and Fitbit to become the top seller of wearable devices worldwide for Q2 2017.
- Fitbit’s sales have declined significantly, with a 40% drop in Q2 2017 compared to the same quarter last year.
- Apple’s next Watch model may include extended health tracking capabilities, which could help the company reclaim the top spot.
- Xiaomi’s offline retail strategy and global expansion plans are expected to contribute to its continued growth in the wearables market.
By focusing on affordable products and expanding into new markets, Xiaomi is well-positioned to maintain its position as a leading player in the wearables market.