Apple Watch retakes lead of wearables market, Xiaomi second


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. The report attributes part the success to the new Apple Watch Series 3, which hit global sales as high as 3.9 million. Of those, 800,000 were likely Apple Watch Series 3 GPS + Cellular units. It also represents the most successful quarter for the Watch, which was enough to dethrone temporary leader Xiaomi, who shipped 3.6 million wearables this quarter.

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. It also gave Apple 23 percent of the market, putting it fractionally ahead of the 21 percent for Xiaomi, the Chinese firm that was briefly top of the industry for the first time in the previous quarter. He said that watch sales increased by 50 percent for the third consecutive quarter as people are more inclined toward health services. This meant overall wearable market shipments declined 2% to 17.3 million units, in what is traditionally a slow quarter as consumer hold off on purchases until the Christmas period.

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Launched in September, Apple Watch Series 3 played a major role in pushing Apple back to the top spot.

Apple CEO, Tim Cook, commented on its smartwatch sales in the company's most recent earnings report. Also, the watch did not reach its full potential in the quarter, suffering limited availability with demand outstripping supply.

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"Strong demand for the LTE-enabled Apple Watch Series 3 has dispelled service providers' doubts about the cellular smartwatch not appealing to customers", said Canalys Analyst Jason Low.

That must help, for Apple now ships a Watch for every seven iPhone 7 or 8 models it shifts, according to Canalys. The Chinese government has now disabled the Apple Watch LTE access due to apparent security concerns, but the once the issue is resolved, Canalys expects strong demand from the Chinese buyers as well, according to 9to5mac.

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At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02.