Since the release of the Apple Watch six months ago, Apple Inc. has now dispatched 7 million units of its current hot item. Meanwhile, Xiaomi Corp. and other more economically inclined gadget manufacturers have assertively treaded to capture a notable chunk of smartphone-identical products. Other brands like Samsung, Pebble and Lenovo are chiming in to join the race.
Apple moved more than 300,000 watches just in the third quarter of 2015. Trailing the tech titan are Samsung and Pebble Technology Corp.
Xiaomi's step tracker Mi Band, which retails for 69 yuan ($11) each, saw 10-million unit sales in the same quarter, most of which were sold within the mainland. For now, the number of Apple Watches sold in China is yet to be determined.
Xiaomi's clearly competitive prices and aggressive marketing seem to be the driving forces that thrust the company to reach such heights in sales and markets shares.
Though its product is significantly different in form and function from the Apple Watch, it would not be surprising if Xiaomi came up with a similar gadget for a fraction of the price. The jump from a simple fitness tracker to a full-featured smartphone is highly probable.
Apple, which has an average of $12 billion in sales per quarter in China, is looking to pierce through to the obviously rewarding Chinese smartwatch and other wearables market.
Plans to put up full-service Apple shops in economically mid-level cities are under way in the intention of opening up to newer, more diverse markets.
As if the challenge of going against Xiaomi in the wearable gadget game is not enough, the Apple Watch has to watch out for other up-and-comers to the smartwatch trade as well.
Right up Apple's premium pricing alley is the recently launched and pricey Huawei Watch, which debuted with a $440 sticker price. Lenovo's Moto 360 is another contender, and retails at $147. Both run on Android OS.
All things said when it comes to China, Apple, Samsung and other more established brands are going head-to-head against a resilient and favored Xiaomi. The 2010-founded electronics company may release its follow-up to the Mi Band very soon.
Xiaomi CEO Lei Jun stated that developing quality, feature-heavy and affordable product lines shall be an ongoing process.
As the holiday season approaches, other smartwatch makers still vie to remain close to Apple. Experts say that the smartwatch market is still in its infancy. The right strategy can turn the tables anytime at this critical stage as huge markets remain untapped.