According to Strategy Analytics Wearables (WDE) service, global core wearable (fitness band + smartwatch) revenues grew a healthy 29% YoY in Q2 2018 due largely to strong growth in smartwatch volumes.  Meanwhile, as the Apple Watch Series 3 aged, Fitbit launched the more affordable Versa smartwatch, and Xiaomi launched the ultra-low-cost Mi Band 3 during the quarter, core wearable ASPs declined by 12% sequentially (QoQ) in Q2 2018.  Despite the ASP decline, core wearables still saw the strong  29% revenue growth during the quarter as robust 56% YoY growth in smartwatches volumes (driven by a strong quarter for Apple and Fitbit’s new Versa smartwatch model) more than offset shrinking fitness band volumes and declining ASPs in both categories.

Healthcare will slowly emerge as the next major revenue pool for wearables and Apple is aggressively positioning themselves to lead the charge in that arena with the recently announced Series 4 models.

Clients of our Wearables (WDE) Service can download the full analysis here.