Apple recorded 13.0 percent year-over-year growth in unit shipments to 4.6 million units in the fourth quarter.
It's also helped by the fact that, according to the report at least, Fitbit is too focused on the USA - a saturated market where most people who might want a fitness tracker likely already have one. In other countries, Fitbit is challenged by lower cost competitors overseas.
In the case of Xiaomi, it had adhered to a low-priced strategy and slowly trying to move upwards in terms of pricing, launching new devices with heart-rate monitoring and a slightly higher price. However, Xiaomi still lacks the expertise and brand recognition to expand beyond its native borders in China.
In contrast, the shipments of wearable's all across the world have experienced an increase of approximately 17% during the fourth quarter of FY16, mainly led by Chinese tech giant, Xiaomi and the Cupertino giant, Apple, as per the market research firm, International Data Corporation (IDC). "Apple is one of the few companies that has been able to quickly refocus its watch to gain traction in the consumer market and has also been leading the charge on introducing the smartwatch category to the commercial segment", the firm continued. Overall sales were up 16.9% year-over-year with 102.4 million wearable devices being shipped during the quarter, worldwide.
Samsung rounded out the top five, with two new models, Gear S3 Classic and Frontier and was still the only wearables manufacturers with cellular connectivity.
Improving shipments of ear-worn devices, referred to in the report as "hearables", and clothing with sensors woven in, while still relatively tiny, showed promise that the market is becoming about more than just wrist-worn devices, according to IDC. The year-on-year growth of Xiaomi stood at 96.2 percent as compared to a 22.7 percent drop for Fitbit. Its share of the wearables market, which includes basic fitness trackers, was an estimated 13.6%, down slightly from 14.1% in the year-ago quarter.
"It's enough to blur the lines against most smart wearables, to the point where first generation smartwatches are no better than most fitness trackers".
IDC noted that the company remains focused on the United States that is heavily saturated with fitness trackers.