The worldwide wearables market saw shipments increase 10.3% year-over-year in the second quarter, totaling 26.3 million, according to the International Data Center.

The quarter saw both winners and losers in the sector. Basic wearables, those that do not run third-party applications, declined for the first time with annual growth of negative 0.9%. But smartwatches, like Apple (AAPL) - Get Report Watch, grew 60.9% during the quarter predicated on both fitness and fashion enthusiasts.

"The transition towards more intelligent and feature-filled wearables is in full swing," said Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers. "For years, rudimentary fitness trackers have acted as a gateway to smartwatches and now we're at a point where brands and consumers are graduating to a more sophisticated device."

Consumer electronics company Xiaomi led the way in the quarter with 3.5 million shipments, and now boasts 13.4% market share. Apple, which shipped 3.4 million in the quarter, has a 13% market share. Fitbit (FIT) - Get Report also shipped 3.4 million in the quarter and represents a 12.9% market share, and  Garmin (GRMN) - Get Report grew shipments by 1.4 million, capturing a 5.4% market share. 

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