Kids Smartwatch Segment Grows in Q2 2024 to Buck Overall Trend

China led the global kids smartwatch market with a 64% share, a drop from 72% in Q2 2023.
North America’s shipments grew 1.5x owing to Fitbit’s launch and expansion by operators and other brands.
Imoo led the segment globally with a 48% share, driven by a strong presence in China and Asia-Pacific.
The kids smartwatch segment is expected to outperform the broader market in 2024 with 7% growth, compared to the overall market’s decline of 4%.

Global kids smartwatch shipments grew 4% YoY in Q2 2024, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. Across all major smartwatch types*, only the kids segment showed positive YoY growth during the quarter.

Kids smartwatches have been available for some time, but it is only recently that they have gained wider acceptance among consumers. As adults have embraced smartwatches and seen their benefits, many now want to offer similar advantages to their children. This trend is ultimately convincing many parents to delay the first smartphone purchase for their children to keep them away from the harmful effects of social media in their early stages of growth.

Kids smartwatches are also a great option for parents who want to stay connected with their children while ensuring their safety. These devices offer features like GPS tracking and calling and texting with pre-approved contacts. This helps parents keep in touch with their children without giving them full access to the internet. Besides, many smartwatches include fun and educational games that encourage kids to stay active and monitor their health.

In terms of regions, China continued to lead the kids smartwatch market in Q2 2024, holding a 64% share, thanks to strong distribution channels and numerous local brands. Other regions, such as North America and Asia-Pacific, are also seeing increased interest. The North American market grew over 1.5x driven by Fitbit’s entry with the Ace LTE for Kids, developed in partnership with Qualcomm. In the US, operators including Verizon, T-Mobile and AT&T are expanding their offerings with children-friendly smartwatches. Verizon launched the Gizmo Watch 3 in Q1 2024, while T-Mobile and AT&T introduced the SyncUP KIDS Watch 2 and AT&T amiGO Jr. Watch respectively in H2 2024. These devices are designed to be worn in schools without causing any distraction.

In India, brands are diversifying their smartwatch portfolios to attract new customer segments as the basic smartwatch category approaches saturation. New smartwatch models are being introduced with specific users in mind, such as a ruggedized device for sports activities (like the Noisefit Force), a full-fledged Android-based smartwatch with camera and the ability to install third-party apps (like the Fireboltt Snapp) and new options for children such as the Imoo Z7 and boAt Wanderer. Even Apple is repositioning its smartwatches to target the kids segment in India with colorful models, new watch faces, and independent LTE connectivity.

In the global kids smartwatch market, the top three brands held a combined 62% share in Q2 2024, a YoY decline due to the rise of many smaller brands. BBK (Imoo) led with a 48% share, followed by Huawei and Xiaomi. Imoo saw double-digit growth by expanding its portfolio in the $100-$200 price range and focusing on regions like the Asia-Pacific, in addition to its strong presence in China. Meanwhile, Huawei’s kids smartwatch shipments declined YoY as other brands strengthened their presence in the advanced smartwatch category. In terms of price bands, the $100-$200 price band grew over 1.5x due to increasing popularity in China and North America.

According to Counterpoint’s latest global smartwatch market forecast, the kids smartwatch segment is expected to grow by over 7% this year, compared to the overall market’s decline of 4%. This growth in the kids segment will be driven by the strong performance of Chinese brands and the North American market’s growth, particularly with Fitbit’s entry and new models from US operators and local players. Besides, Indian brands are diversifying their portfolios to attract new customer segments.

Source: Counterpoint Research

We believe that the kids smartwatch market is still untapped. As the use cases evolve, more opportunities will come up for other OEMs to enter this market with new models. A few of the most popular features in this segment include cellular connectivity, GPS support, camera, and educational and gaming apps. In terms of applications, security, emergency communication, and the compact form factor (which might serve as a substitute for smartphones for kids) will drive future growth. Payment is another area that brands can target to help parents foster healthy money-spending habits in their children. For instance, Google Pay recently partnered with GoHenry and Greenlight to have tap-and-pay features in next-generation Fitbit smartwatches.

*Types of smartwatches:

Advanced or HLOS smartwatch: Electronic watch running a high-level OS, such as Watch OS (Apple) and Wear OS (Samsung), with the ability to install third-party apps.

Basic smartwatch: Electronic watch running a lighter version of an OS, with no ability to install third-party apps.

Kids smartwatch: Electronic watch capable of either linking to a partner smartphone or independently accessing the internet over LAN, WAN or cellular connectivity, and designed to meet the needs and requirements of children, such as location tracking, health monitoring, voice or video communication, and gaming.

Apple Unveils New iPhone 16 with Apple Intelligence, Watch Series 10, AirPods 4 and more

The new iPhone 16 and iPhone 16 Pro models focus on Apple Intelligence and camera features.
Apple Watch’s Series 10 comes with a bigger display, thinner design, sleep apnea detection and faster charging, among other features.
The new AirPods 4 offers improved features, ANC for open-ear design, new battery case, and much more.
With the upcoming software update for the AirPods Pro 2, Apple is focusing on hearing health experience.

Apple’s September “Glowtime” event saw the launch of new products, including the iPhone 16 series, Watch Series 10 and the new AirPods 4. Alongside these new products, Apple also introduced the Watch Ultra 2 and AirPods Max headphones in new colors, and new hearing health features in the AirPods Pro 2.

The big focus of the announcement was on Apple Intelligence (AI) features that take advantage of the new A18 and A18 Pro SoCs, allowing users to make the most of new iPhones. All the products announced at the September 9 Apple event will go on sale on September 20. Here is a rundown of all the Apple announcements.

iPhone 16 / Plus: A18 SoC, Apple Intelligence, new camera key control, and more

A18 SoC:

Both the iPhone 16 and iPhone 16 Plus models are powered by the A18 SoC.
Built on a second-generation 3nm process, the A18 SoC comes with a six-core CPU, which includes two performance and four efficiency cores. It is 30% faster than the iPhone 15’s A16 Bionic CPU and also consumes 30% less power.
It also features a five-core GPU which is 40% faster than the iPhone 15’s A16 Bionic and uses 35% less power. It unlocks hardware-based ray tracing and also brings support for AAA game titles for the iPhone 16, which was earlier limited to only Pro models.
There is also an updated 16-core Neural Engine optimized for running large GenAI models.

iPhone 16, iPhone 16 Plus: Key specifications, features

The iPhone 16 and iPhone 16 Plus come with 6.1-inch and 6.7-inch Super Retina XDR displays, respectively. These screens offer up to 2000 nits of peak brightness, which goes as low as one nit in the dark.
They come with an updated design which includes a new vertically stacked camera array, a new action button for quick access to silent mode, voice memos, translation, and other features.
There is also a new addition with a capacitive touch Camera Control button, which works as a two-stage camera shutter, and also as a slider for functions like zoom and depth adjustment.
Both smartphones come with a 48MP primary camera with 2X lossless zoom and a 12MP ultrawide angle camera with auto-focus. The ultrawide angle camera also doubles as a macro camera.
The iPhone 16 starts at $799 for the 128GB variant, whereas the iPhone 16 Plus starts at $899.

Source: Apple

Apple Intelligence on iPhone 16

The new Apple Intelligence features are designed to boost productivity and help users express themselves. These AI features use a mix of both on-device and cloud processing. And with privacy being a concern for some, Apple did highlight that the data in the cloud is never stored and only used for processing your request. Below are AI features that you can experience on the iPhone 16 and 16 Plus models.

First, we have writing tools where the AI can proofread text and rewrite it in different versions before sending it. It is available everywhere you write, including third-party apps like WhatsApp and LinkedIn. Users can also adjust the tone of their text from friendly to professional before sending.
Apple has also added a summarization feature where you can get a transcript and summary of the audio. It works on both the Notes app when you record audio and the Phone when you record phone calls.
The Inbox app is also supercharged with AI, where it shows time-sensitive messages, like invitation deadlines or flight check-in reminders. The app also displays a summary of the mail, instead of the first two lines, thus conveying the most useful info, even without opening the mail.
Apple Intelligence also includes priority notifications, which show important notifications at the top, like calendar invites.
AI also allows you to create new emojis by simply describing what you want. With Image Playground, you can also create original images based on text using a stable diffusion model.
In the Photos app, AI can help find the photo you are looking for simply by describing it, like “barbecue photos from last month” or “airplane photos from San Francisco”.
AI can even compile photos and create a small video from it, along with nice background music.
Siri is also enhanced, and you can now ask it to send a particular photo to a contact. For instance, “Hey Siri, send Jeff the photos from last night’s dinner”.

These Apple Intelligence features will be available for free as a software update in US English in October. Apple will also add localized English for countries like Canada, UK, New Zealand and South Africa in December. In 2025, AI will be expanded to more languages including Chinese, French, Japanese and Spanish.

Source: Apple

Apple is also adding Visual Intelligence features to the new iPhones, which work like Google Lens on Android smartphones. Simply point the camera to a restaurant and it will pull up the menu, ratings and other information. See a poster for an event, just click a photo and the AI will add all details to the calendar, including venue, date, time, and more.

iPhone 16 Pro, 16 Pro Max: More powerful A18 Pro SoC, more Apple Intelligence features

A18 Pro SoC:

The new Pro version of the A18 SoC is also built on the second-generation 3nm process.
The SoC comes with a six-core CPU, which includes two performance cores and four efficiency cores. Apple says the new SoC is 15% faster than the A17 Pro and consumes 20% less power.
It features a 16-core Neural Engine that can offer AI performance of up to 35 TOPS.
On the graphics side, you get a six-core GPU that Apple claims is 20% faster than the A17 Pro SoC and allows for 2x faster ray tracing.
The new SoC also includes new and advanced media features that support the ProMotion and always-on display. It also enables ProRes video recording.
There is also a new video encoder and Image Signal Processor (ISP), which can process data 2x faster compared to the A17 Pro SoC.

iPhone 16 Pro, 16 Pro Max: Key specifications and features

The new iPhone 16 Pro models come with even thinner bezels, allowing Apple to pack slightly bigger displays in the same form factor.
The iPhone 16 Pro has a 6.3-inch screen, while the iPhone 16 Pro Max has a 6.9-inch screen, both supporting up to 120Hz refresh rate.
These new Pro iPhones are made from Grade 5 titanium and come with the same capacitive camera button as seen on the iPhone 16 models.
In the photography department, there are three cameras – the main 48MP fusion camera with a 24mm focal length, with 2x telephoto lossless zoom at 48mm; a 12MP 5x telephoto camera with a tetra prism design and 120mm focal length; and a 48MP ultrawide camera with 13mm focal length.
Staying on photography features, Apple is also introducing new Photographic Styles where you can apply preset filters and fine-tune each photo to your liking, making color grading easier.
There is also a new video action mode to capture stable video footage, and spatial audio capture with four mics to cancel out unwanted background and wind noise. It also includes an Audio Mix feature that lets you optimize the way voices sound in the videos in the frame.
The video mode also supports 4K 120fps cinematic slow-motion video capture.
The iPhone 16 Pro prices start at $999 for the 128GB model, whereas the iPhone 16 Pro Max starts at $1199 for the 256GB model.

Advanced Apple Intelligence on iPhone 16 Pro models

The Apple Intelligence features in the Pro models largely remain the same as in the base models, but there are some added features.
In the voice memo app, musicians can record a song without a mic and layer another track on top of it, like a previously recorded guitar track. It plays the guitar track from iPhone speakers while also recording the new voice. The AI can then cancel the background noise and isolate and enhance your voice. You can even merge both recordings.
This is one of the initial features and Apple did mention many more will be coming with new software updates.

Source: Apple

Apple Watch Series 10: Focus on thinner design, health features, and more

The new Series 10 smartwatch comes with a bigger display and thinner design. At 9.7mm, Apple says it is 10% thinner than the Series 9 and weighs 20% less.
Apple says the new smartwatch offers up to 30% more screen, allowing users to have slightly bigger font without compromising on the display area.
The new display, which Apple calls Wide Angle OLED, is 40% brighter and updates once a second in the always-on mode, allowing it to be more efficient.
The S10 SiP comes with a 64-bit dual-core processor and a four-core Neural Engine for AI tasks.
One of the new features of the Apple Watch Series 10 now lets you play music from the speaker, which is a nice addition but may not offer a room-filling sound like smartphones. It could be good to use in closed spaces, like an office cabin or even in a bedroom.
The smartwatch also comes with even faster charging, which can charge up to 80% in 30 minutes, though battery life, a persistent problem with Apple Watch, is not significantly improved.
Talking about AI features, it comes with on-device Siri, the AI can automatically detect and start a workout, and it also comes with crash and fall detection.
Apple has introduced a new translation app for the Apple Watch, which also supports offline translation features.
Besides, there is a big focus on health. The device can track sleep changes and also detect possible sleep apnea using an accelerometer and rolling analysis, atrial fibrillation, and more. However, given the limited battery life, sleep tracking may not be easy if the watch is worn throughout the day.
For athletes, the new Apple Watch can detect water depth and temperature, and offer the distance, speed and time when kayaking. For surfers, it offers information on rising and falling tides.
The Apple Watch Series 10 starts at $399 for the 42mm GPS model and $499 for the 42mm GPS+Cellular model.

Source: Apple

Apple also announced a new color option for the Apple Watch Ultra 2. It will now also be available in a new black titanium case along with new band options. The price remains $799.

New AirPods 4, updated AirPods Pro, AirPods Max

Lastly, Apple also introduced two new AirPods 4 models, an improved AirPods Pro 2 and a refreshed AirPods Max.

AirPods 4:

The AirPods 4 featuring an open-ear design is available in two variants – the regular one at $129 and the one featuring ANC for $179.
With an H2 chip inside, the TWS brings improved connectivity, better battery life, and other features.
It supports a hands-free calling experience – where you can nod your head to accept or reject an incoming call.
There is also a voice isolation feature for clear calls, which eliminates background noise, whether you are in a subway or on a busy road.
Apple has updated the drivers to offer richer bass and a personalized spatial audio experience.
There is also an improved transparency mode to hear your surroundings.
There are two more features – adaptive audio, which automatically reduces the level of noise depending on the changing environment, and conversation mode, which automatically reduces the music level when you are talking to someone and increases back when you stop talking.
Apple says the AirPods 4 case is the most portable yet, delivers up to 30% more battery life and supports Apple Watch and Qi wireless chargers.
There is also a speaker on the case which can help in finding it in case you misplace it.

Source: Apple

AirPods Max with new colors, AirPods Pro 2 update to unlock new features

Apple has updated the AirPods Max over-the-ear headphones with new colors and included USB-C charging capabilities.
The AirPods Max starts at $549.
Moving on to the AirPods Pro 2, Apple is introducing new hearing protection and guidance features, along with self-regulating volume control for hearing health.
Apple, citing its hearing study, mentions that one in three people is exposed to loud environmental noise, which can be while commuting, from lawnmowers, or even at events. This results in hearing loss over time, with most cases not diagnosed or treated.
Apple will bring a new software update, which is under FDA approval now, to allow users to take a five-minute hearing test and customize the audio based on their hearing capabilities.
This updated hearing profile will be applied everywhere, from music to phone calls and videos. The data will be saved securely in the Health app and users can regularly take these tests to update their hearing profile.
With this updated feature, the Apple AirPods Pro 2 can also be used as a clinic-grade hearing aid, although it is unclear how long this hearing support will last before recharging becomes necessary. It is, nevertheless, a good innovation.

Source: Apple

Global Smartwatch Shipments Market Share (Q1 2023 – Q2 2024)

Global Smartwatch Shipments Market Share Quarterly

Published Date: September 04, 2024

Source: Global Smartwatch Shipments by Model Quarterly Tracker

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Smartwatch Shipment Forecast by Brands & Regions

Explore the forecast for smartwatch shipments and ASPs by key brands and regions.

LATEST

Highlights:

• Global smartwatch shipments declined 9% YoY in Q2 2024, due to the decline in the Basic Smartwatches.

• Xiaomi claimed the position in the Top 3 spots for the first time ever, owing to the fast adoption in the past 3 quarters.

• Chinese brands including Huawei, BBK (Imoo), and Xiaomi drove the Chinese shipments and reached the highest share in Q2 2024. India region shipments dropped for the first time in history, driven by the inventory pile up and due to slow replacement cycle.

• In the NAM region, HLOS smartwatch shipments declined 16% YoY. The major decline came from Apple and Fitbit while Garmin represented 11% YoY growth.

*Data on this page is updated every quarter. Rankings are according to the latest quarter.

This data represents the global smartwatch market share by quarter (from 2023-2024) by top brands.

For detailed insights on the data, please reach out to us at sales(at)counterpointresearch.com. If you are a member of the press, please contact us at press(at)counterpointresearch.com for any media enquiries.

We also have a detailed smartwatch shipments model tracker available for subscribing clients:

Global Smartwatch Market Analysis, Q2 2024

PDF File

Published Date: August 2024

This report analyses the shipments of smartwatches splitting them by device types, price bands, regions and OEMs. It also includes model and specs level analysis with OS, chipset and display split. This is a robust quarterly report with fact-based deep analysis that covers multiple dimensions and will help players across the smartwatch value chain to holistically analyze the current state of the global smartwatch market and plan ahead of competition.

Samsung’s Reinforced Galaxy Watch 7 Lineup to Boost Revenue Growth in 2024

Samsung unveiled the Galaxy Watch 7 and the high-end Galaxy Watch Ultra at the Galaxy Unpacked event, following the release of its entry-level Galaxy Watch FE in June.
This diversification reflects Samsung’s strategy to boost revenue growth, similar to trends seen with other major smartwatch OEMs like Huawei and Apple.
The Galaxy Watch 7 features improved battery capacity, Exynos W1000 chipset and Galaxy AI.

Samsung Electronics launched its latest smartwatch iteration, the Galaxy Watch 7, along with the Galaxy Watch Ultra, a completely new high-end variant, on July 10 during the Galaxy Unpacked event in Paris. Samsung also unveiled its new lineup of foldable smartphones alongside the Galaxy Ring at the event.

With this, Samsung’s latest smartwatch lineup now consists of the Galaxy Watch 7 base model, Galaxy Watch Ultra and the Galaxy Watch FE – another new smartwatch variant introduced in June, targeting the entry-level segment. This reflects Samsung’s diversification strategy to boost revenue growth, a method adopted by most major smartwatch OEMs. The Galaxy Watch Classic/Pro was not released at this year’s Galaxy Unpacked event.

Samsung’s Galaxy Watch 7 features significantly improved specifications compared to the previous iteration. The new lineup boasts better battery capacity and usage time, and is equipped with the Exynos W1000 wearable chipset, the first wearable chipset to utilize the 3nm process.

Perhaps the most remarkable aspect of Samsung’s new smartwatch collection is the Galaxy AI, which has been driving the GenAI craze on smartphones. The freshly adopted Galaxy AI feature can analyze health indicators and remember users’ habits based on personal health data obtained from the devices. The feature is expected to provide a more systematic approach to predicting and diagnosing future health conditions. Additionally, it can also present new directions in various fields such as medical care and sports. Galaxy AI’s other functions include translation, text conversion assist, text summarization and automatic generation of customized text messages directly on the smartwatch.

Table 1: Specifications Comparison of Samsung’s New Smartwatch Lineup

Source: Samsung

The newly added Galaxy Watch Ultra is priced at $649.99, which is 1.5x higher than the Galaxy Watch 6 Classic, one of the more expensive models in last year’s lineup. Meanwhile, the release price of the Galaxy Watch 7 base model remains almost similar to last year’s iteration, despite its upgraded specifications surpassing those of the Galaxy Watch 6 Classic.

The Galaxy Watch Ultra’s price point does not overlap with the Classic (or Pro) as this is Samsung’s first time introducing this price point. However, this does not completely replace the Classic (or Pro), and we cannot rule out the possibility that the Ultra will be released simultaneously with the Classic (or Pro) smartwatch in the future. If that happens, the Galaxy Watch lineup will consist of four tiers – FE, Basic, Classic (or Pro) and Ultra. The Galaxy Watch FE, which was released for the first time in June this year, has become the entry-level option in the Galaxy Watch series, with the launch price set at $199 for non-cellular models.

Samsung has been diversifying its smartwatch lineup like most major smartwatch OEMs. For example, Huawei and its various types of smartwatches. Alongside basic smartwatches that perform only simple functions, Huawei is also launching HLOS smartwatches like the Huawei Watch GT 4, which support third-party apps. Huawei also offers kids smartwatches specifically designed for children, such as the Huawei Children Watch 5.

Apple has also recently shown a pattern of segmenting its lineup. Apple introduced its entry-level first-generation Apple Watch SE in 2020, about five years after it first began selling the Apple Watch. In 2022, Apple recorded its highest-ever annual shipment helped by the high-end Apple Watch Ultra and the second generation Apple Watch SE, which were both launched during the same year. Apple achieved this result despite an 8% decline in Apple Watch S8 shipments compared to its predecessor.

Picture 1: Apple, Samsung, Huawei’s HLOS Smartwatch Lineup
* Note: The most recently released models for each lineup are listed, with the price indicating the release price.

Samsung, having newly established both an entry-level and high-end lineup this year, is also expected to see a rebound in both shipments and revenue. The Galaxy Watch FE appears to be highly appealing to consumers in emerging countries who have been using low-end smartwatches thus far, as it allows them to experience the latest market technology like Galaxy AI through products from Samsung’s high-end brand within their budget. This will enable more people to enter the Galaxy ecosystem.

The launch of the Galaxy Watch Ultra is expected to provide Android smartphone users with a viable alternative to Garmin, especially in the high-end smartwatch market priced over $500. In 2023, revenue of high-end (>$500) smartwatch market accounted for 27% of total smartwatch revenue. The Galaxy Watch Ultra is expected to help Samsung increase its smartwatch revenue in 2024, potentially displacing some of the current market leaders.

The diversification of smartwatch lineups is expected to manifest in various directions throughout the market in the future. For example, HLOS smartwatch brands are likely to segment into affordable premium, premium and ultra-premium categories. In contrast, low-cost smartwatch brands, represented by local Indian brands, are expected to strive to even encroach on the remaining smart band and fitness tracker markets by organizing their own lineups toward ultra-low, low and mid-low without entering the high-end (>$500) market.

India’s Smartwatch Market Stagnates in Q1 2024 for the First Time Ever

After witnessing continued double- and triple-digit growth over the past few years, the market was flat in Q1 2024.
Top three OEMs’ combined market share dropped to 66% in Q1 2024 from 77% a year ago.
The market is expected to register its first-ever double-digit percentage decline in 2024.
However, growth is expected in the longer term as newer use-cases emerge.

New Delhi, Beijing, Boston, Buenos Aires, Hong Kong, London, San Diego, Seoul – June 06, 2024

India’s smartwatch shipments rose marginally by 0.3% YoY in Q1 2024, marking the bustling market’s first-ever stagnation, according to the latest research from Counterpoint’s IoT Service. The Indian smartwatch market was on a high growth streak over the past couple of years driven by high demand, particularly from the youth. However, the muted growth in Q1 2024 indicate declining replacement rates among early adopters due to limited differentiation and innovation among key players.

Commenting on the market trends, Senior Research Analyst Anshika Jain said, “The overall market, which has been registering double- and triple-digit growth over the last couple of years, remained flat in Q1 2024 as some top brands faced difficulties in clearing their existing stocks. Consumers are not warming up to buy a new smartwatch or replace an existing one due to low differentiation in terms of features and limited innovation in the market leading to decline in combined market share of the top three players from 77% in Q1 2023 to 66% in Q1 2024.”

In terms of brands, Fire-Boltt continued to lead the market, followed by Noise and boAt, respectively. Fastrack performed well, driven by improved channel presence and new model launches. beatXP’s shipments doubled as it focused on low-ASP smartwatches and targeted the entry-level segment.

In the premium segment, Apple grew more than 3x due to continued demand for the Apple Series 9 and Apple Watch Ultra 2. For Samsung, almost 50% of its shipments volume came from the Galaxy Watch 6 series.

Commenting on the consumer outlook, Research Analyst Harshit Rastogi said, “The hyper growth of smartwatches in the India market over the past few years has been primarily driven by its appeal as a low-cost fashion accessory. However, this initial growth phase is now cooling down as the initial excitement of the segment is tapering off. This is also reflected in the dwindling growth rates and a bleak outlook. The market is forecast to witness a double-digit percentage decline in 2024. However, in 2026 and beyond, we expect the market to recover driven by newer use-cases in smartwatches. We will continue to see new users added to the category but at a slower growth rate.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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Wear OS, HarmonyOS to Register Strong Growth in Global Smartwatch Market in 2024

The global HLOS* (or advanced) smartwatch market is expected to see a healthy 15% annual growth in 2024.
While Apple WatchOS dominates, we are seeing growing adoption of HarmonyOS and Google Wear OS platforms this year.
In China, HarmonyOS smartwatches’ share is expected to reach 61% owing to the high adoption of Huawei 5G smartphones.
Major brands that will drive Wear OS volumes include Samsung, Google, OnePlus, OPPO and Xiaomi.

Seoul, Beijing, Boston, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – April 29, 2024

The global smartwatch market has been growing rapidly for multiple years now driven by the explosion of basic smartwatches priced mostly under $100 and running proprietary or real-time operating system (RTOS)-type operating systems with basic functionality and applications. On the other hand, advanced smartwatches (those with High-Level Operating System or HLOS) have been growing steadily mostly driven by Apple and Samsung until now.

However, according to our latest global smartwatch tracker and forecast by region, brand and OS, the global HLOS smartwatch market is estimated to grow 15% annually in 2024 in terms of volume, after a flattish growth in 2023. The major part of this growth will come from non-Apple smartphone users adopting either a Google Wear OS-based smartwatch if outside China or a Huawei HarmonyOS-based smartwatch if in China.

For example, in the advanced smartwatch segment, we estimate the Google Wear OS share outside China will climb to 27% in 2024. The growth will be primarily driven by the availability of more advanced smartwatches powered by Wear OS, like the latest adoption by Google Pixel and OnePlus Watch 2, along with the refreshed Samsung Galaxy Watch 6 series.

Commenting on the market performance, Senior Research Analyst Anshika Jain said, “Just as in the case of smartphones, where there is a shift toward premium devices in consumer buying patterns, we are witnessing that first-time smartwatch users or upgraders in the Android camp are now looking for a much better user experience and are willing to spend more when going for their next purchase. Due to this, we expect greater adoption of Google’s Android Wear (Wear OS) since these devices provide a robust third-party app experience, Google AI assistant, and precise health tracking, customization and battery optimization.”

Jain added, “Until now, most of the Wear OS adoption was driven by Samsung smartwatches, and there were limited mainstream options for Android smartphone users. However, starting this year, we are seeing Google and Qualcomm managing to attract their leading smartphone customers such as OnePlus, OPPO and Xiaomi to launch Wear OS-based smartwatches outside China at attractive high-tier price points. Further, Google’s own Pixel watches will also continue to contribute to the Wear OS adoption globally.

In addition to Wear OS, we are witnessing the growth of HarmonyOS powered by the increasing popularity of Huawei smartwatches in China. On this trend, Associate Director Ethan Qi said, “In 2023, the overall HarmonyOS shipments grew almost 2x, surpassing Apple’s WatchOS. HarmonyOS’ shipment share is further estimated to reach 61% in China in 2024, up from 48% in 2023. The launch of 5G smartphones by Huawei last year and the resulting growth have acted as a key catalyst in driving the attach rate for Huawei smartwatches and expanding China’s advanced smartwatch market.”

Source: Counterpoint Global Smartwatch Quarterly Model Tracker, Q1 2018-Q4 2023

In terms of smartwatch chipsets, Apple and Samsung currently hold two-thirds of the advanced smartwatch market. Hengxuan and Qualcomm are expected to witness double-digit growth in 2024. Qualcomm’s market will be driven by more launches on its W5+ Gen 1 and W5100 processors, while Hengxuan’s growth will be mainly driven by the adoption of Huawei and Xiaomi smartwatches in China.

In terms of new and future launches, we are seeing a new trend of having a dual-chipset and dual-OS strategy, which combines a high-end processor, like from Qualcomm, with a low-power co-processor and a hybrid version of Wear OS, allowing smooth integration and switching between RTOS and HLOS depending on the user application, to boost power and performance. Players such as Ambiq Micro, BES Tech and Goodix will benefit from this trend and expand their share in the advanced smartwatch market. Therefore, there are more collaboration opportunities available in the market for hardware players with software platforms like the Wear OS to expand the device’s capabilities. Companies such as MicroEJ will also play a key role in abstracting the dual-OS application complexities.

While there are emerging trends when it comes to OS and chipset strategies, we are also seeing smartwatch displays becoming a key component for differentiation. Counterpoint company DSCC’s Senior Director David Naranjo said, “According to our smartwatch display panel shipments tracker, the advanced smartwatch, which mostly sports cutting-edge OLED and MicroLED displays, is bound to see an increase in orders for suppliers in the 16%-18% range in 2024 due to strong momentum after the second half of 2023 and the blended OLED panel pricing declining by 3% in addition to larger display sizes.”

Types of smartwatches:

*Advanced or HLOS smartwatch: Electronic watch running a high-level OS, such as Watch OS (Apple) and Wear OS (Samsung), with the ability to install third-party apps.

Basic smartwatch: Electronic watch running a lighter version of an OS, with no ability to install third-party apps.

Background

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OnePlus Watch 2: Big Upgrades, Competitive Pricing

OnePlus’ Watch 2 is a substantial upgrade with a bigger and brighter display, dual-band GPS, bigger battery, and increased internal storage among others.
However, the primary upgrade is its ability to run both Google’s WearOS 4 and Real-Time OS (RTOS) without sacrificing the battery life.
Retailing at $300, the OnePlus Watch 2 is priced lower than its competing WearOS offerings from Samsung and Google.

Three years after launching the OnePlus Watch, the company announced a new smartwatch – OnePlus Watch 2 – at MWC 2024 in Barcelona. The latest model is a substantial upgrade with a bigger and brighter display, dual-band GPS, bigger battery, and increased internal storage among others. However, the primary upgrade is its ability to run both Google’s WearOS 4 and Real-Time OS (RTOS) without sacrificing the battery life.

While most High-Level OS (HLOS) smartwatches offer a battery life of a day or two, the OnePlus Watch 2 can last for 100 hours on a single charge in smart mode, and even 12 days in power-saving mode, alleviating concerns over daily charging.

Google has made fundamental changes to the WearOS 4 with a hybrid interface, which allows OnePlus to cherry-pick the best of both OSs. The smartwatch can seamlessly switch between RTOS and HLOS depending on the active task. Tasks like running WearOS apps or third-party apps will invoke WearOS.

Other features like continuous health tracking and smartphone notification mirroring would be taken care of by the power-efficient RTOS. This means RTOS will be constantly active, whereas the HLOS will only run when required. We can expect to see this hybrid version of WearOS 4 in upcoming smartwatches, paving the way for further adoption of Google’s smartwatch OS and maintaining share against Apple’s Watch OS.

OnePlus’ dual-chipset approach facilitates the switch between RTOS and HLOS, powered by the BES2700 microcontroller unit and Qualcomm’s Snapdragon W5 application processor respectively. The Snapdragon processor shuts down completely when in power-saving mode.

With Fossil’s exit from the smartwatch market and Samsung’s Galaxy watches running on its Exynos processors, Qualcomm can maintain or even grow its presence across the smartwatch space with the OnePlus’ Watch 2 owing to its wider presence across the globe compared to the Pixel Watch 2.

Retailing at $300, the OnePlus Watch 2 is priced lower than its competing WearOS offerings from Samsung and Google and would likely appeal to users entering the WearOS ecosystem or OnePlus users looking for enhanced integration with their smartphones. Older-generation Galaxy Watches retailing at lower prices would also compete with the smartwatch in emerging markets like India. Like its peers, the smartwatch is incompatible with iOS and Android Go-powered smartphones.

While the OnePlus Watch 2 has implemented commendable upgrades, we expect to see further advancements like cellular connectivity, fall detection and SOS in its next update. FDA approval, like its peers, would also prove to be a boost in showcasing its capabilities.

With major smartphone OEMs expanding their foray into the health-tracking market, OnePlus could also bring more devices like smart scales and smart rings in the coming years to remain competitive.

OnePlus had less than 1% market share in the global smartwatch market in 2023, which could grow owing to this new upgraded iteration.

India Smartwatch Market Sees Record Shipments in 2023 With 50% YoY Growth

With a 30% share, Fire-Boltt took the top spot in 2023, driven by the widest portfolio among all OEMs.
Noise and boAt captured second and third spots with 25% and 17% shares respectively.
The top five brands’ share was the highest ever at 81%, indicating a growing but consolidating market.
Fastrack and Boult entered the top five for the first time.
54% market was under the retail price band of INR 2,000, which registered over 3x growth.

New Delhi, Beijing, Boston, Buenos Aires, Hong Kong, London, San Diego, Seoul – February 7, 2024

India’s smartwatch shipments grew 50% YoY in 2023, according to the latest research from Counterpoint’s IoT Service. This growth was driven by the rising penetration of smartwatches, proliferation of low-cost devices to target first-time users, and enhanced efforts by Indian brands through extensive marketing and distribution, promotions and local manufacturing. In addition, there is growing awareness and interest among customers to track their health vitals, utilize the device as a style statement, or leverage it for gifting purposes.

Commenting on the market dynamics, Research Analyst Harshit Rastogi said, “The market saw over 125 active smartwatch brands in 2023 even as it started moving towards consolidation. The combined share of the top five brands reached the highest ever at 81%. In addition, growth of emerging players like Fastrack, Boult and BeatXP led to further consolidation of the market. The product portfolio of the top players expanded quite a lot compared to 2022 to cater to different customer segments. Moreover, the market is now further skewed towards the lower price bands with 54% of the shipments in 2023 coming under the INR 2,000 retail price band, up from 26% in 2022.”

Commenting on the outlook, Senior Research Analyst Anshika Jain said, “While the market continues to register high growth rates, we are seeing some stabilisation, signaling wider adoption. The quarterly growth rates have come down from triple to double digits. We expect the market to grow 23% YoY in 2024. With the introduction of new features like cellular connectivity, high-level OS (HLOS) and better displays, the market is likely to sustain growth. We are now observing that OEMs are tapping into new emerging markets like Southeast Asia and the Middle East and foraying into other wearable categories like smart rings to accentuate their presence in the market.”

Market Summary

Fire-Boltt led the market with a 30% share. The brand maintained its focus on offering a wide SKU portfolio and a strong offline presence.
Noise (along with sub-brand Alt) captured the second spot with a 26% market share. The Noise Colorfit Icon 2 and Colorfit Icon Buzz were the best-selling smartwatches in 2023. The brand expanded its retail presence in 2023 and also expanded its portfolio in the kids smartwatch category.
boAt (with sub-brands TAGG and Defy) maintained its third spot in the market with a 17% share and 40% YoY growth. The brand sported its widest portfolio in 2023 and also introduced its Crest+ OS. Besides, it launched limited-edition smartwatches for the Cricket World Cup in 2023.
Fastrack registered the highest shipment growth among major OEMs to move to the fourth spot with a 5.4% market share. With existing brand value and wide offline presence, it has expanded rapidly.
Boult captured the fifth spot with a 3.8% market share. It had the lowest ASP among the top five OEMs.
Samsung declined by 3% YoY in 2023 but registered 17% YoY growth in Q4 2023. The Galaxy Watch 4 continued to be the brand’s best-selling model owing to its promotional pricing, making it the best-selling WearOS smartwatch in India.
Apple’s shipments declined by 57% YoY in 2023 owing to longer replacement cycles and higher ASP coupled with iPhone-only compatibility. The brand maintained its lead in the shrinking INR 20,000 and above retail price band. With increased iPhone sales in India in 2023, we can expect gradual growth in Apple Watch shipments in 2024.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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press(at)counterpointresearch.com

Global Smartwatch Market Rebounds; Huawei and Fire-Boltt Hit New Peaks

The global smartwatch market rebounded with a 9% YoY rise in Q3 2023 shipments, continuing the upward trend from the previous quarter.
Growth was propelled by strong performances in the Indian market, particularly from Fire-Boltt, and Huawei’s significant surge in China.
Outside India, the rise in high-specification HLOS smartwatches, driven by new Apple, Huawei, and Samsung releases, dominated the market.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – December 01, 2023

Global smartwatch shipments increased 9% YoY in Q3 2023, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. After experiencing a slowdown earlier this year, the smartwatch market regained momentum in Q2 2023 and continued the positive trend in Q3 as well. The primary drivers of this growth were the sustained strong performance of the Indian market led by Fire-Boltt, as well as Huawei’s tremendous rebound in China.

Research Analyst Woojin Son said, “There is significant value in examining the growth drivers of the global smartwatch market in Q3 2023. Amid a global economic slowdown, most consumer device markets like smartphones are still experiencing stagnation compared to a year ago. In contrast, the smartwatch market has recorded YoY growth for two consecutive quarters in both premium and budget segments. Notably, High-level Operating System (HLOS)* smartwatches, typically featuring higher specification and price, have grown largely driven by Huawei in Q3 2023 as the company posted its highest quarterly performance ever. Most of this surge occurred in the Chinese domestic market, coupled with the launch of new Huawei 5G smartphones.”

High-level Operating System (HLOS)* Smartwatch Market Share, Q3 2022 vs Q3 2023

Source: Counterpoint Global Smartwatch Model Shipment and Revenue Tracker, Q3 2023

Son added, “Meanwhile, the Indian market, which has been powerfully leading the Basic* smartwatch sector, maintained robust growth in the quarter. The country contributed to 35% of total global shipments, securing its position as the leader in the global market for the third consecutive quarter.”

Market Summary

Apple delivered its best-ever Q3 performance, with a 7% YoY increase in shipments. This achievement is particularly noteworthy given that the latest Apple Watch, a key product in their lineup, was released slightly later than the previous year. The strong shipments of the 2^nd-generation SE model significantly contributed to the growth of the industry leader.
Huawei witnessed an impressive 56% YoY increase in overall shipments for the quarter, with HLOS smartwatches seeing a remarkable 122% surge. Its Watch 4 and 4 Pro series, released in Q2 2023, and the Watch GT 4, released in Q3 2023, have achieved good popularity. The increase in Huawei’s shipments was due to the return of its smartphones and the bundled sales model induced by various sales channels.
Samsung experienced a 19% YoY decline in shipments. However, the new products released in August exhibited only a 3% drop compared to the previous ones. In essence, the decrease in Samsung smartwatch shipments this quarter appears to be primarily attributed to a sharper decline of legacy models. Meanwhile, the proportion of the Galaxy Watch 6 Classic significantly increased compared to last year’s 5 Pro, contributing to the rise in the ASP of the brand.
Fire-Boltt reclaimed its leadership position in India after recording its all-time highest quarterly shipments. All the three major Indian brands — Fire-Boltt, Noise and boAt — are experiencing a slower growth rate than before. However, this is interpreted not as a sign of sluggishness, but rather as an indication of entering a phase of stabilization.

*Types of smartwatches:

HLOS smartwatch: Electronic watch running a high-level OS, such as Watch OS (Apple) or Wear OS (Samsung), with the ability to install third-party apps.
Basic smartwatch: Electronic watch running a lighter version of an OS, with no ability to install third-party apps.

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