Apple Becomes World's Top Wearable Manufacturer, Claims New Report
Nov 15 2017 by Michele Stevens
According to research firm Canalys, the USA firm shipped 3.9 million Apple Watch units in the third-quarter, the strongest ever for Apple. It is worth noting that Xiaomi and Fitbit primarily sell basic wearable, while Apple exclusively dominates the smartwatch category for now. "Apple and Samsung are increasing user stickiness and brand loyalty by adopting an ecosystem strategy, which includes wearables and audio accessories". According to Canalys estimates, 800,000 AppleWatch units shipped in Q3 were cellular-enabled. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple.
Apple saw strong interest in its updated Apple Watch Series 3 smartwatch in the third quarter, but most buyers opted for models without the most-touted new feature: cellular connectivity. Service providers had underestimated demand for the new Apple Watch.
Traditionally, the third-quarter is seen as the weakest period for sales as potential buyers hold off until the holidays, but according to Canalys, all top vendors registered a growth in shipments. 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.
Offering a "tetherless" experience along with highlighting the health features of the app has surely worked in favor of the USA firm.
Apple is once again the biggest selling producer of wearables after its third-generation Apple Watch, released in September, helped it pip China's Xiaomi to the post. No. 400 on the Fortune 500 for 2017 was Calpine, with $6.7 billion in revenue, so we can say Apple's wearables business is at least that large and represents over half of the company's "Other Products" segment, which generated $12.9 billion in revenue in fiscal 2017.
At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02.