Apple succeeds in failing wearables

Apple succeeds in failing wearables

Xiaomi and Fitbit, which shipped 3.6 million and 3.5 million wearable bands respectively, have also bucked the trend of the traditionally weaker Q3 by posting quarter-on-quarter growth. The third-generation Apple Watch launched September 22. Estimates from Canalys suggest that unit sales nearly hit 4 million for Apple Watch in the third quarter. However, it did mention during its latest results call that the wearable business, which includes Apple Watch, AirPods, and Beats products, grew 75 percent year-over-year.

Apple withdrew all Series 2 Watch units from sale, and now positions 2015's Series 1 Watch as the new entry-level, starting at £249.

Apple has once again surged to the top of the global wearables market, forcing Xiaomi into second place. CEO Tim Cook said in Apple's most recent earnings report that Watch sales were up by 50 percent for the third consecutive quarter thanks to a focus on health services.

According to new report published by Canalys, Apple became the largest manufacturer of wearable devices after the release of its Apple Watch in September 2017. Their increase in third quarter shipments was, however, more than offset by slowing demand for fitness trackers.

Canalys Analyst Jason Low stated for the report that "Strong demand for the LTE-enabled Apple Watch Series 3 has dispelled service providers' doubts about the cellular smartwatch not appealing to customers". The Watch Series 3 is available in Wi-Fi only avatars as before in most markets, while some countries get the LTE variant as well that uses a separate data connection which gives it more capabilities even when a phone isn't paired. It suffered limited availability as demand outstripped supply in major markets.

The drop in the prices of the previous generation watches following the launch of the Watch Series 3, also helped Apple to push watch sales. The research firm believes that the carriers underestimated the demand for the cellular version.

In China, the Apple Watch LTE access is now disabled by the government. For Q3 2017, Apple Watch sales account for a 23% share of the global wearables market. Year to date, the stock is up over 49%, while in the last one-month, it is up over 10%.

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