By the end of 2Q16, Fitbit (NASDAQ:$FIT) was leading the wearables market with a share of over 24%. However, it is speculated that Fitbit’s share in the worldwide wearable market will decline to around 13% by the end of 2Q17.

Year-over-year, Fitbit’s shipment units have decreased by 40%, from 5.7 million to 3.4 million. By comparison, China’s Xiaomi (privately traded) is the new reigning market leader with a share of 13.4% and unit shipment growth of 13.7% YoY at 3.5 million. Further, Apple’s (NASDAQ:$AAPL) Apple Watch share is sitting at 13%, though shipments have risen drastically by almost 50% year over year.

Research firm International Data Corp, or IDC, recently predicted:”Fitbit finds itself in a period of transition. Early leaks and the recent official announcement of the Fitbit Ionic will help cement the company’s place in the growing market, but short-term growth remains challenged as the product portfolio is vast and undifferentiated.”

Indeed, the smartwatch sector has experienced double-digit growth in 2Q17, as more and more customers are shifting from traditional fitness trackers to devices loaded with several features. Fitbit’s Ionic comes with several new features, including health programs and customized coaching. The company also partnered with Pandora (NASDAQ:$P) to enable users to download over 300 songs onto their device. As a comparison, the Iconic is available for $300, while the Apple Watch Series 3 is priced at $329 and $399.

Going forward, Fitbit looks to focus on penetrating the European and Asian market as the key revenue drivers.

Featured Image: twitter