Apple Watch has typically been a strong holiday product and demand for the S3 Watch is significantly higher than the S2 was a year ago. The Apple Watch Series 3 was only available from the middle of September.
According to research firm Canalys, the US firm shipped 3.9 million Apple Watch units in the third-quarter, the strongest ever for Apple.
The release of the company's third generation smartwatch has helped boost the company's fortunes.
Xiaomi came in second place during Q3 2017, securing 21 percent of the total wearable market and shipping 3.6 million units.
Armed with his kitesurf and Apple Watch 3 on his wrist, one John Zilles took against the waves on a new underwater hydrofoil wing, but about a mile in, he wiped out, and couldn't get his heavy kit airborne again. Despite increased shipments, the overall wearable band market dropped by 2% to 17.3 million units, primarily due to the waning demand for the basic bands, Canalys estimates. CEO Tim Cook said in Apple's most recent earnings report that Watch sales were up by 50 percent for the third consecutive quarter thanks to a focus on health services.
The analyst says the cellular LTE Apple Watch Series 3 has proved popular, with demand outstripping supplier and carriers surprised by the demand for the cellular Watch ...
Incidentally, this is the very same quarter where Google, which makes the Android Wear smartwatch platform to rival the Apple Watch, has been completely silent on the future of its smart watches.
Launched in September, Apple Watch Series 3 played a major role in pushing Apple back to the top spot.
The only thing holding Apple back was limited availability in some markets, Canalysis said. The Chinese government has now disabled the Apple Watch LTE access due to apparent security concerns, but the once the issue is resolved, Canalys expects strong demand from the Chinese buyers as well, according to 9to5mac.
Canalys, a firm best known for its in-depth smartphones sales analyses, published a report on Tuesday that takes a long, hard look at the wearables market.
At 9.53 a.m. EST, Apple shares were down 0.57% at $173.02.