Apple Watch retakes lead of wearables market, Xiaomi second

Media alert: Apple retakes the lead in the wearable band market in Q3 2017 | Canalys

About 800,000 of the shipments were Apple Watch Series 3 with LTE capabilities. Lacking a base figure for that growth, investors remain largely in the dark regarding Watch sales and have to rely on third-party estimates.

Grateful for his new Apple Watch 3 functionality that took him out of a potentially unsafe situation, John Zilles emailed Apple to let them know how he appreciates the gear, and apparently even got a short reaction by fellow fitness nerd Tim Cook himself, in the form of one short but sweet "wow, happy to hear you are safe" reply. "In fact, our entire wearables business was up 75% year over year in the fourth quarter and in fiscal 2017 already generated the annual revenue of a Fortune 400 company".

The new device, Apple's first that connects to the internet without being tethered to a smartphone, took the US mobile giant to 3.9 million shipments in the recent Q3 2017, according to new data from Canalys. Apple shipped 23% of all smartwatches, fitness bands, and other wearables, Canalys said, just ahead of Chinese low-priced seller Xiaomi, at 21%, and Fitbit (fit), which captured a 20% market share.

Despite the gains, overall wearable sales dropped by 2 percent in Q3 year-over-year to 17.3 million in unit sales. Domestic carriers are charging $10 per month to add a data plan for Apple Watch, which could be rather profitable, as actual data usage will probably be quite low.

Though third quarter is the weakest period for the sales of wearable devices, top manufacturers gained huge in Q3 2017.

The Mac maker uses a unique definition for wearables and includes wireless headphones like AirPods and BeatsX as well as Apple Watch.

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Apple is on the list - but there are nine others you may be overlooking.

At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02. The Motley Fool owns shares of and recommends Apple and Fitbit.

After a short disruption by Xiaomi, Apple Inc. The Motley Fool has a disclosure policy.

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