Pattern Analysis of Wearable Device Market in 2020

IDC recently released a wearable device market tracking report, showing that China's wearable device shipments in the third quarter of 2020 were 32.93 million units, an increase of 15% over the same period last year. The top three manufacturers are Huawei, Xiaomi and apple. Huawei benefited from the strong performance of smart bracelets and smart watches, which led to the rapid growth of wearable devices. In this quarter, the shipment of Huawei series wearable devices increased by 60% year-on-year to 9.41 million units, ranking first in the industry.

For Xiaomi, despite the high cost performance to seize the market, in the face of strong competitors such as Huawei, Xiaomi series wearable devices decreased by 7.7% year-on-year to 7.24 million units in the quarter, and the market share decreased to 22% from 27.5% in the third quarter of 2019, ranking second. It should be noted that Apple continues to maintain rapid growth in China's wearable device market. Applewatch and airpods series headphones showed a steady growth trend, making the overall shipment in the quarter increased by 66% year-on-year to 5.87 million units, ranking third in the Chinese market.

On the whole, in terms of the domestic wearable device market pattern, Huawei is stable in the market and shows strong competitiveness. So far, the domestic wearable device market has been crowned king. However, in terms of the global market, Xiaomi is pushing Huawei. Because it continues to make efforts in overseas markets, the market ranks second in the world. Huawei's shipments of wearable devices are mainly concentrated in China due to US sanctions.

IDC data show that in the third quarter of 2020, Xiaomi ranked second with 17 million units, accounting for 13.6% of the global market share. Huawei ranked third, with a shipment of 13.7 million units in the quarter, an increase of 87% over the same period last year, making it the fastest income increasing manufacturer among the three major manufacturers. It is worth mentioning that apple, as the world's leading manufacturer of wearable devices, leads the world in terms of shipment and market share.

In the third quarter of 2020, the global shipment of wearable devices reached 125 million units, a year-on-year increase of 35%. Apple's wearable devices account for 33% of the global market share, ranking first in the industry, with a shipment of 41.4 million units. The shipment scale is the total of Huawei, Xiaomi and Samsung. It can be seen that Apple dominates the global wearable device market.

According to the financial report, wearable devices are one of Apple's new cash cow sectors. In fiscal year 2020, the revenue from other businesses composed of wearable devices and smart home reached US $30.62 billion, with a conversion of RMB 200 billion. It is the business sector with the most beautiful growth rate of Apple's product lines. In addition, according to the data given by various research institutions, applewatch is the world's best-selling smart watch, and airpods is the world's highest selling TWS headset market.

Applewatch, which is favored by fruit powder all over the world, mainly lies in rich health and medical management, especially heart rate detection. At the same time, the new generation of applewatchseries 6 goes further on the basis of the previous generation of health functions and introduces new functions, so that users can measure blood oxygen saturation, so as to better master their own overall health status. Overall, apple smart watch is not limited to an intelligent hardware, but a healthy life device. Meanwhile, applewatch has been praised for saving lives.

Airpods is the world's most popular wireless headset, and the airpodspro with noise reduction function was sold out all over the world. The strong demand for wearable devices has greatly increased the performance of industrial chain companies. In the first three quarters of 2020, the revenue of Lixun precision increased by 57% year-on-year to 59.5 billion yuan, and the net profit increased by 62% year-on-year to 4.68 billion yuan. In the first three quarters of Lansi technology, the revenue increased by 26.6% year-on-year to 26.08 billion yuan, and the net profit increased by 209.6% year-on-year to 3.43 billion yuan. As one of the core suppliers of airpods, Goethe shares is expected to further improve its profitability with the continuous expansion of the sales scale of Apple's wearable devices. The net profit in the first three quarters increased by 105% year-on-year to 2 billion yuan.

Finally, despite the impact of the epidemic this year, the global wearable devices continue to show a thriving development trend. Consumers have strong demand for wearable devices such as smart watches, earrings and wristbands. In particular, smart watches can be used independently by mobile phones, and various wearable devices can be added to health and other management applications, promoting the rapid growth of the industry.

With the accelerated arrival of 5g, after integration with artificial intelligence, life health and big data, it will bring users a new technology and health experience, which is expected to change the competition pattern of existing wearable device manufacturers.

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