Basic wearables, primarily comprised of fitness bands, accounted for 85% of the wearables market in the third quarter of 2016, IDC estimates.
The total market grew 3.1% year-over-year during the quarter, with wearables shipments reaching 23 million.
IDC said much of the increase in shipments for fitness trackers was attributed to the launch of newer models, an expanding user base, and an enticing summer season that allowed people to step out of their homes.
The research firm expects the momentum for basic wearables to continue for the remainder of 2016 as the holiday season is now in full swing. However, it said smart wearables capable of running third party apps will likely continue to struggle in the near term.
“It’s still early days, but we’re already seeing a notable shift in the market,” commented Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers.
“Where smart watches were once expected to take the lead, basic wearables now reign supreme. Simplicity is a driving factor and this is well reflected in the top vendor list as four out of five offer a simple, dedicated fitness device. Meanwhile, from a design perspective, many devices are focusing on fashion first while allowing the technology to blend in with the background.”
Ramon Llamas, research manager for IDC’s Wearables team, also noted that user tastes change, so will their needs.
“That’s the opportunity for smart wearables with multi-functionality and third-party applications, both for consumers and business users. To get there, we need to see more intuitive user interfaces, seamless user experiences, standalone connectivity, and applications that go beyond health and fitness and into personal and professional productivity,” he said.
During the quarter, Fitbit once again led the market. IDC expects Fitbit to continue leading the pack in the near term and said that the acquisition of Coin and the potential to expand into the smartwatch category present an opportunity for the company to be more than just a fitness brand.
Xiaomi’s new Mi Band, on the other hand, includes heart rate tracking and is priced well below any competition, making it more suitable for impulse buying than any other fitness band. Garmin captured the third position as the company with one of the widest portfolios among all the vendors in this market.
While Apple’s decision to launch its second-generation watches in mid-September did contribute to its year-over-year decline in 3Q16, IDC said the primary reasons for the downturn were an aging lineup and an unintuitive user interface.
During the quarter, Samsung released two new models, Gear Fit 2 and the Icon X. Around the globe, the company was able to move large volumes of its latest wearables thanks to bundles offered with the Note 7 and other Samsung smartphones.