The firm's latest report indicates that the total number of wearable shipments from companies reached 22 million, with the Chinese company able to capture 17% of the market to overtake Fitbit and Apple and surge into the number one spot.
Xiaomi's total sales in the quarter are a 23% rise from the 3 million units it carted out in Q2 2016, with the Mi Band fitness trackers proving particularly popular in its home territory of China. Interestingly, the company has also managed to remain relatively competitive in terms of its feature set, including the likes of heart rate monitoring into its fresh Xiaomi Mi Band 2.
As Steven Waltzer - an industry analyst at Strategy Analytics - also points out, the uptick is likely due to the demand for budget fitness tracker options in China, while those in the United States looked to more premium smartwatch options.
However, while Xiaomi is now seemingly in the lead in terms of sales, its lead is only slim. Fitbit was able to maintain 16% of the wearable market over Q2, though this does represent a mammoth drop from its 29% share in Q2 2016.
Meanwhile, Apple, which is operating at the high-end of the top three, shipped an estimated 2.8 million units, which is a growth of around one million devices from the same period last year.
The report gives an interesting insight into how the wearables market has shifted in recent months. While premium devices such as the Apple Watch are still popular, more people have turned toward entry-level fitness tracker options. While this is good news for Xiaomi, whose focus is to cater for the low-end price point, it leaves Fitbit sitting between its two biggest competitors.
Whether this is a trend that continues for the Chinese company remains to be seen, but, at least from what we've seen this quarter, its influence is gobbling up the competition.
Source: Strategy Analytics