Apple has generated more than $2.6 billion in revenue from Apple Watch in Q4 2016, representing nearly 80 percent of total smartwatch revenue, according to Canalys.

Apple set a new quarterly shipment record in Q4 2016, contributing to total smartwatch shipments exceeding 9 million units. This global market figure was largely driven by Apple’s 6 million shipments, representing 12 percent growth.

Apple Watch faced supply constraints, though Apple simultaneously expanded its supply chain.

“Apart from the hardware and software improvements of the new models, Apple succeeded mainly due to its streamlined marketing and re-aligned pricing, which helped it address a wider audience,” said Analyst Jason Low.

Canalys estimates that Apple cumulatively shipped 11.9 million Watches in 2016, holding market share of around 50 percent globally for the year.

Xiaomi had a record quarter with its basic band shipments, reaching 5.5 million Mi Bands. Xiaomi expanded the availability of the Mi Band 2 across Asia Pacific and Central and Eastern Europe. India, Poland and Russia were key markets where the device was introduced alongside the company’s Mi and Redmi smartphones through direct and third-party online channels.

Samsung is expected to push shipments of its Gear S3 Classic and Frontier. Android Wear shipment volumes will bounce back significantly, as new products that were postponed due to the delay of Android Wear 2.0 will soon be launched.

Apple’s smartwatch lead will increasingly be challenged by the rebounding competition.