IDC On Wearables: Shift Is Underway To 'Smarter Devices'

The wearable market continues to grow, but at a slower rate, according to IDC.

What Happened

Global shipments of wearable devices rose 1.2 percent in the first quarter of 2018 to 25.1 million units, which marks a slowdown from 18-percent growth seen in the same period a year ago, IDC said. Shipments of higher priced "smarter devices" from companies like Apple Inc. (NASDAQ: AAPL) and Fitbit Inc (NYSE: FIT) grew 28.4 percent, according to IDC. 

Global shipments of sensor-laden clothing — including shirts, shorts, clothing and shoes that counts steps — grew 58.6 percent, IDC  said. The segment as a whole remains small, as watches and wrist bands accounts for 95 percent of all shipments.

The Top 5 Players

The top five wearables players by market share at the end of the first quarter were the following, IDC said: 

• Apple: 16.1 percent versus 14.3 percent last year.
• China's Xiaomi: 14.8 percent versus 14.6 percent last year.
• Fitbit: 8.7 percent versus 12.2 percent last year.
• China's Huawei: 5.2 percent versus 2.1 percent last year.
• Garmin Ltd. (NASDAQ: GRMN): 5 percent versus 4.6 percent last year.

What's Next

Data in the first quarter points to the beginning of what could be a trend, IDC senior research analyst Jitesh Ubrani said in the report. Health and fitness components remain important to users, but over time consumers will be demanding devices that include the following, according to IDC: 

• Coaching.
• Audio modification.
• Language translation.
• Personal safety.
• Connected features for children.

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