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Apple (AAPL) Dominates Wearables Market in Q4, Xiaomi Trails
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Apple (AAPL - Free Report) continues to be the leading player in the wearables market, courtesy of the latest Apple Watch 6.
According to the latest IDC data, global shipments of wearables increased 27.2% year over year to 153.5 million in the fourth quarter of 2020. Hearables accounted for 64.2% share of shipments, followed by watches with 24.1% share and wristbands with 17.8% share.
Apple’s wearable shipments were the highest at 55.6 million, up 27.2% year over year, driven by strong adoption of Apple Watch Series 6, Watch SE and Series 3. Moreover, market share stayed at 36.2% in fourth-quarter 2020.
Chinese company Xiaomi ranked second, selling 13.5 million units of wearable devices, up 5% year over year. However, shipments of the company’s popular Mi Band lineup declined 18.3% due to supply constraints.
Moreover, Xiaomi’s market share declined to 8.8% in fourth-quarter 2020 compared with 10.6% in the year-ago quarter.
The other three in the top-five list are Samsung, Huawei and BoAt, with a market share of 8.5%, 6.7%, and 3.5%, respectively. All three gained market share.
Wearables Growth Potential Strong
The demand for wearables is expected to remain strong in 2021, driven by growing demand for health monitoring and remote work.
Per Gartner’s projections, global user spending on wearable devices will increase 18.1% year over year to $81.5 billion in 2021, driven by strong demand for smartwatches and ear-worn devices.
Apple’s wearables market domination is expected to continue owing to the strong adoption of Apple Watch. The company is collaborating with leading research institutions to conduct a number of heart health studies
Moreover, the company’s Fitness+ subscription service, built on Apple Watch, is a game changer. Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
Markedly, Apple Fitness+ workouts include cycling, treadmill, rowing, HIIT, strength, yoga, dance, core and mindful cooldown. Each is accompanied by music curated by trainers.
Strong Product Lineup to Aid Growth
The company is reportedly planning to launch Air Tags or Apple Tags (ultra-wideband trackers) along with a number of products. Air Tags are rumored to be more accurate than traditional Bluetooth trackers, with each one expected to contain a U1 ultra-wideband chip currently found in the latest iPhones.
Other Apple products lined up for 2021 include a new pair of AirPods, silicon Macs, and the first mini-LED devices. The iPhone-maker is expected to undertake a transition to mini-LED displays across the iPad Pro and Mac lineups in 2021.
Appleis also expected to launch its first virtual reality (“VR”) headset in 2022. The iPhone-maker’s entry will intensify competition in the VR device market, which includes devices such as Facebook’s Oculus Quest 2, Sony’s PlayStation VR, Microsoft’s (MSFT - Free Report) Windows Mixed Reality and HTC’s Vive and Vive Pro.
Moreover, this Zacks Rank #2 (Buy) company is reportedly working on augmented reality (“AR”) projects to extend its footprint in the fast-emerging AR market, and is anticipated to release its AR devices by 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
According to IDC report, global spending on AR and VR is expected to reach $72.8 billion in 2024 from $12 billion in 2020, reflecting a CAGR of 54%. Apple is leveraging on these opportunities with its continuous developments in AR and VR spaces. The company is said to be developing a new operating system (rOS) for AR and VR hardware.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Apple (AAPL) Dominates Wearables Market in Q4, Xiaomi Trails
Apple (AAPL - Free Report) continues to be the leading player in the wearables market, courtesy of the latest Apple Watch 6.
According to the latest IDC data, global shipments of wearables increased 27.2% year over year to 153.5 million in the fourth quarter of 2020. Hearables accounted for 64.2% share of shipments, followed by watches with 24.1% share and wristbands with 17.8% share.
Apple’s wearable shipments were the highest at 55.6 million, up 27.2% year over year, driven by strong adoption of Apple Watch Series 6, Watch SE and Series 3. Moreover, market share stayed at 36.2% in fourth-quarter 2020.
Chinese company Xiaomi ranked second, selling 13.5 million units of wearable devices, up 5% year over year. However, shipments of the company’s popular Mi Band lineup declined 18.3% due to supply constraints.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Moreover, Xiaomi’s market share declined to 8.8% in fourth-quarter 2020 compared with 10.6% in the year-ago quarter.
The other three in the top-five list are Samsung, Huawei and BoAt, with a market share of 8.5%, 6.7%, and 3.5%, respectively. All three gained market share.
Wearables Growth Potential Strong
The demand for wearables is expected to remain strong in 2021, driven by growing demand for health monitoring and remote work.
Per Gartner’s projections, global user spending on wearable devices will increase 18.1% year over year to $81.5 billion in 2021, driven by strong demand for smartwatches and ear-worn devices.
Apple’s wearables market domination is expected to continue owing to the strong adoption of Apple Watch. The company is collaborating with leading research institutions to conduct a number of heart health studies
Moreover, the company’s Fitness+ subscription service, built on Apple Watch, is a game changer. Fitness+ tracks health- and workout-related data from Apple Watch that users can view on their iPhones, iPads or Apple TVs.
Markedly, Apple Fitness+ workouts include cycling, treadmill, rowing, HIIT, strength, yoga, dance, core and mindful cooldown. Each is accompanied by music curated by trainers.
Strong Product Lineup to Aid Growth
The company is reportedly planning to launch Air Tags or Apple Tags (ultra-wideband trackers) along with a number of products. Air Tags are rumored to be more accurate than traditional Bluetooth trackers, with each one expected to contain a U1 ultra-wideband chip currently found in the latest iPhones.
Other Apple products lined up for 2021 include a new pair of AirPods, silicon Macs, and the first mini-LED devices. The iPhone-maker is expected to undertake a transition to mini-LED displays across the iPad Pro and Mac lineups in 2021.
Appleis also expected to launch its first virtual reality (“VR”) headset in 2022. The iPhone-maker’s entry will intensify competition in the VR device market, which includes devices such as Facebook’s Oculus Quest 2, Sony’s PlayStation VR, Microsoft’s (MSFT - Free Report) Windows Mixed Reality and HTC’s Vive and Vive Pro.
Moreover, this Zacks Rank #2 (Buy) company is reportedly working on augmented reality (“AR”) projects to extend its footprint in the fast-emerging AR market, and is anticipated to release its AR devices by 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
According to IDC report, global spending on AR and VR is expected to reach $72.8 billion in 2024 from $12 billion in 2020, reflecting a CAGR of 54%. Apple is leveraging on these opportunities with its continuous developments in AR and VR spaces. The company is said to be developing a new operating system (rOS) for AR and VR hardware.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>