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.

Counterpoint Conversations: Samsung Pushes Foldables and Galaxy AI for Enterprise Mobility

At the Galaxy Unpacked event, Samsung announced its sixth-generation foldable smartphones, the Galaxy Z Fold6 and Galaxy Z Flip6, alongside new smartwatches, TWS and a new health ring. The Galaxy Z Fold6 and Z Flip6 are also Samsung’s latest devices to feature Galaxy AI, Samsung’s on-device and cloud-based GenAI features on board.

At the event, Gerrit Schneemann, Senior Analyst at Counterpoint Research, sat down with Brad Haczynski, SVP & GM Mobile eXperience B2B, USA, at Samsung, to discuss the new launches, AI and more. They also discussed the increasingly interconnected ecosystem of devices for enterprises and users looking for the latest in mobile productivity hardware.

The Interview

Key Takeaways from the Discussion

Samsung is positioning its ecosystem of devices as a complete solution for businesses of all sizes. In the mobility sector, this ranges from entry-level devices for fleet deployment (A-series), all the way to foldables, in addition to tablets and laptops.
The Galaxy Z Fold has replaced the Note series as a productivity powerhouse. Samsung believes that this type of device can be utilized as a main computing device for workers moving between offices and client locations.
Galaxy AI features easily fit into workflows and can enhance productivity. However, Samsung is aware that in regulatory environments, businesses need clarity on how AI capabilities are delivered (on-device vs cloud).
Samsung offers businesses the option to customize AI features and has an established security and privacy brand called Samsung
Wearables are likely to have become more important for businesses in two ways – they can monitor employees to ensure safety, provide health benefits and incentivize healthy behaviors. They can also be deployed by companies as gateways to the end consumer to enable health monitoring in different scenarios.
Samsung’s Energy Score is an example of how wearables, combined with AI, can deliver personalized health tracking.

Analyst Takeaways

Samsung continues to focus on the Galaxy Z Fold6 as a productivity tool for enterprise clients, where mobile computing is increasingly essential. It offers employees access to a flexible computing platform, which can be used as a standalone device or connect to external displays and accessories with always-on connectivity, is an attractive solution, despite the device’s flagship price.
Over the last five generations of the device, Samsung has partnered with app developers to optimize their enterprise applications for the larger Fold display.
Galaxy AI features bring another element of productivity to the table. Features like real-time translation and transcription are ideal for enterprise users.
Samsung has also invested heavily in its Knox security platform over the years, and it can now integrate AI capabilities in a way that allows enterprises to stay within their internal regulations and guidelines while taking advantage of novel productivity features.
The launch of the Galaxy Ring illustrates Samsung’s desire to create a broad ecosystem of devices that can address many use cases for business users and create B2B2C relationships as well – a win-win for Samsung and its partners.
Furthermore, the fast evolution of Galaxy AI capabilities since the initial launch earlier this year showcases Samsung’s focus on rapid iteration to drive AI use cases and features into more aspects of the mobile user experience and deliver them to a larger part of the existing user base.

Latest Samsung Foldables Strengthen AI Integration Across Galaxy Ecosystem

Samsung’s new Galaxy Z Fold6 and Galaxy Z Flip6 models, unveiled at the Galaxy Unpacked Event 2024 in Paris on July 10, combine two key industry trends – foldables and GenAI. While featuring incremental hardware improvements, these models stand out when it comes to Samsung’s integration of Galaxy AI across its foldables and wearables. The models strengthen the Galaxy ecosystem and enhance user experience across smartphones, wearables, PCs and tablets.

Powering both the Galaxy Z Fold6 and Z Flip6 foldables is the flagship Qualcomm Snapdragon 8 Gen 3 for Galaxy SoC. Beyond flagship performance and better power efficiency, the NPU unlocks powerful AI capabilities such as on-device interpreter, translation, and transcription. It also powers mobile AI experiences like Photo Assist, Drawing Assist, and more. Our analysts were present at the Paris event. Below are their initial impressions of the announcements:

Galaxy AI: Hybrid approach broadens product scope

Samsung’s hybrid approach to AI use cases is expanding the Galaxy AI experience to broader categories. Users will be more reliant on end experiences rather than the backend functionality. Samsung’s differentiation in terms of use cases based on the hybrid approach is evident. It highlights multiple features like Live Translate, which is done on the device, and image generation, which is done on the cloud. Optimizing these experiences on foldables makes them more relevant.

Research Director Tarun Pathak said, “Samsung’s hybrid AI approach brings innovation to everyday experiences, showcasing seamless functionality from device to use case. It is a leap forward where user interaction is the key, whether it is live translation or foldable optimization. It is all about making tech work smarter for you.”

Source: Counterpoint Research

Galaxy Z Fold6: Sleek business end of foldables; Galaxy Z Flip6: More premium, more fun

Samsung is expected to keep gaining mindshare in the foldables market with the launch of Z Fold6 and Z Flip6. The new devices feature meaningful updates along with a refreshed design that is more symmetrical and sleek. The hinge is further optimized with a dual-rail structure for more durability and enhanced Armor Aluminium. For the first time, Samsung has introduced a vapor chamber in the Z Flip series while also increasing the vapor chamber on Fold6 to enhance gaming experiences.

From the productivity point of view, the integration of Galaxy AI along with the S Pen experience could make these devices the first to unlock content creation use cases already seen in the AI PC segment. However, the outer display enhancement is still less than ideal for comfortable operation. Samsung highlighted significant productivity and communication use cases with Note Assist, PDF overlay, Sketch to Image, and Composer, making these features more relevant for productivity-centric devices like foldables.

Senior Analyst Gerrit Schneemann said, “Samsung’s mission is to dismantle the foldable barriers. By boosting camera performance to 50 MP, extending battery life, and fortifying the display and hinge, Samsung tackles the hurdles head-on, making foldables more irresistible.”

Source: Counterpoint Research

Galaxy Watch Ultra: ‘Athletic-grade’ with advanced features, algorithms

The Galaxy Watch series has a new addition to the Watch Ultra features – advanced health monitoring. This segment is niche but competitive. Samsung’s entry will test the features and endurance that an athletic-grade watch promises. Durable capabilities along with the latest chipset integration and WearOS 5 make it compelling. Sleep tracking gets better with AI algorithms for sleep analysis and sleep apnea features. The bioactive sensor offers better accuracy than similar products in the market. Besides, the 3nm processor promises three times faster CPU performance and 30% improved power efficiency.

Associate Director Jan Stryjak said, “For Galaxy Watch, sleep tracking gets better with AI algorithms for sleep analysis, along with the Sleep Apnea feature. The bioactive sensor offers more accuracy, which could act as a good differentiator to some of the similar products in the market.”

Source: Counterpoint Research

Galaxy Ring: A true complement to Galaxy wearables universe

Samsung’s debut with Galaxy Ring is expected to complement Galaxy Watch rather than compete with it. Galaxy Ring could act as a first point of entry to the Galaxy wearable segment for many users, potentially upgrading them to a watch later. Galaxy Ring works even longer when paired with a Galaxy Watch, further extending the already long battery life by up to 30%.

However, the category faces challenges in managing multiple SKUs (nine size options) and privacy permissions in different regions, possibly contributing to the delayed launch. In terms of design, durability and looks, the ring is promising. It weighs only 2.5-3 gm with seven days of battery life. The specially designed charging case is a highlight. The new energy score leverages four significant factors – sleep, activity, heart rate and heart rate variability – to provide a more powerful wellness metric to users. Preventive and prioritized alert notifications will be key going forward.

Senior Analyst Maurice Klaehne said, “No subscription hassle introduces Samsung users to effortless health tracking. It is a stepping stone into the Galaxy ecosystem, complementing, and not competing with, Galaxy Watch.”

Source: Counterpoint Research

Galaxy Buds: AI-powered innovation in wireless audio

The Interpreter feature is an exciting addition, with AI coming to TWS faster than anticipated. Samsung’s early move in this area will help create meaningful use cases for the category. The refreshed design looks clean and comfortable for the ears.

Research Director Tarun Pathak said, “The Interpreter feature is a game-changer, showcasing AI integration in TWS devices ahead of expectations. Samsung’s proactive approach is set to redefine how we use earbuds by combining advanced functionality with a sleek, comfortable design that is perfect for long-term wear.”

Source: Counterpoint Research

Conclusion

Overall, Samsung’s offerings at this Galaxy Unpacked demonstrate its resolve to lead the industry with innovative foldables, advanced AI integration, and cutting-edge health technology. Each new device and feature further strengthens the Galaxy ecosystem, promising a more seamless and enhanced user experience across devices.

Global XR (AR & VR Headsets) Market Share: Quarterly

Access our quarterly data for XR headset shipment market share. This data covers both AR and VR headsets.

Counterpoint Quarterly

Wearables Q1 2024

Global XR (AR & VR Headsets) Market Share: Quarterly

Published Date: Jun 27, 2024

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Global XR (VR&AR) Market Share Q1 2024
Brands	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Meta	83%	51%	51%	52%	78%	64%
Apple	-	-	-	-	-	16%
Pico	7%	7%	6%	9%	5%	7%
Sony	-	33%	29%	21%	9%	4%
Others	10%	9%	14%	18%	8%	9%

Source: Global XR (AR & VR Headsets) Model Tracker, Q1 2024

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Highlights:

• In Q1 2024, global VR headset shipments declined 29% YoY and 51% QoQ. The sequential drop was partially due to seasonality during the post-Black Friday sales period in North America and the post-11.11 Single’s Day promotion period in China.

• Despite the entry of Apple’s Vision Pro, the global VR headset market remained weak in Q1 2024. Meta’s shipments declined, while Sony and Pico faced significant inventory-clearing pressures. The enterprise VR segment demonstrated more resilience compared to the consumer segment.

• Global AR smart glass shipments grew 40% YoY in Q1 2024. However, the market declined 45% QoQ, primarily due to the end of the Black Friday sales in North America and the 11.11 Single’s Day promotion in China.

• A noteworthy event in Q1 2024 was the rise of VITURE to the third position in the AR smart glass market with the launch of its One series in China.

*Data on this page is updated every quarter

This data represents a repository of quarterly data for the global XR (AR & VR Headsets) shipments market.

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.

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AjnaLens VR Training – Teleporting Trainees to Job Site

The global XR headset market share numbers are from:

Global XR (AR & VR Headsets) Model Tracker, Q1 2024

Excel File

Published Date: June 2024

This is a comprehensive database of Extended Reality (XR) headset model level shipments by quarter including retail price and 30+ specifications and features. It covers tethered as well as standalone Virtual Reality (VR) and Augmented Reality (AR) headset models. We are tracking 35+ XR brands and 70+ headset models by memory variants.

Apple Kickstarts AI Journey with Apple Intelligence Riding on CAPEX (CApable Personalized EXperiences) Push

Apple has unveiled a well-rounded strategy to bring Generative AI capabilities to its ecosystem.
Given the high level of external focus on its AI plans, Apple strategically placed AI at the end of its WWDC24 keynote, branding it ‘Apple Intelligence’, a clever move to gain a greater mind share to start with.
The fact that Apple is positioning it as a capable personalized experience that is based on great architecture, the name Apple intelligence is likely to resonate with users a lot going forward.
The initial use cases announced range from new features for writing, focusing and communication to image creation.

The era of artificial intelligence (or ‘Apple Intelligence’ as the company would like to describe it) beckons Apple users. At its WWDC24 event on Monday, the company unveiled a well-rounded strategy to bring Generative AI capabilities to its ecosystem. Given the high level of external focus on its AI plans, Apple strategically placed AI at the end of its keynote, branding it ‘Apple Intelligence’, a clever move to gain a greater mind share to start with. The fact that Apple is positioning it as a capable personalized experience that is based on great architecture, the name Apple intelligence is likely to resonate with users a lot going forward.

Image Source: Apple

Unlike Google, Apple avoided creating an overly grandiose narrative for AI. Instead, it focused on specific, practical applications. A consumer-friendly approach will truly encourage the mass adoption of AI on its devices. Therefore, Apple has taken a holistic and highly integrated approach to bringing GenAI experiences to its ecosystem.
The initial use cases announced range from new features for writing, focusing and communication to image creation. Apple orchestrated hundreds of actions for end users that make the device experience more personalized. We believe it is an elegant weaving of ‘typical’ AI features like text summary, image creation and contextual info retrieval.

WATCH: Will Apple Intelligence Drive Ecosystem-wide “Super Cycle” for Apple?

Key AI features:

Summarize text
Create original images
Retrieve relevant data when needed
Siri-ChatGPT free access
Transcribe phone calls and voice memos
Solve advanced math equations
Sort through emails
Prioritize notifications

Image Source: Apple

In Siri 2.0, Siri becomes more useful in communicating in a natural conversational and contextual language, the capability being built on top of the App Intent framework, now powered by LLMs. This allows Siri to be more intelligent and take new actions across the apps. Future scenarios for how GenAI, and AImore broadly, can deliver real value to consumers often focus on the evolving role of digital assistants based on software agents.
Despite collaborating with OpenAI, Apple ensured that its capabilities were not overshadowed. For instance, Siri asks for user consent, thus maintaining the strength of its own AI.
At the foundation is Apple Silicon, one of the most powerful and advanced computes available in the market, with the capability to unlock those advanced AI features natively on Apple hardware. Apple also shared the list of devices compatible with Apple Intelligence, starting with the iPhone 15 Pro series in iPhones and iPads.

Image Source: Apple

Built on this are Apple’s ‘Foundation models and Adapters’ trained with underlying privacy-focused “Responsible AI” principles. Adapters are the small neural network modules that fine-tune the models for specific tasks.

Image Source: Apple

Layered on the FM is the ‘App intents’ framework, which is the linchpin here in Apple‘s overall AI strategy. The framework exposes the AI capabilities and drives deeper integration into Apple’s prized application ecosystem. This is the holy grail of Apple’s AI strategy.
OpenAI-ChatGPT-4o partnership adds an extra layer of intelligence for complex queries with universal data across apps.
We believe users and developers will trust Apple’s “privacy-led” narrative both at the edge and in the cloud (Apple’s Private Cloud Compute) to “opt in” with their data to boost the Apple Intelligence strategy.
While it is free for now, at some point Apple will either raise the hardware prices or go with the “hardware-as-a-service” model and start charging for AI.
It can also be a double-sided business model where developers can also earn some (if Apple is generous enough) incentive to integrate App Intents.

Overall, Counterpoint believes that Apple will have more than 250 million fully Apple Intelligence-capable devices by the end of 2025 for developers, Apple and users to start enjoying the scale of Apple Intelligence.

WWDC 2024 – OS Updates

iOS 18 overshadowed, not overlooked

iOS 18 is about customization, productivity and communication. Updates include:

Upgraded home screen, control center
Upgraded messaging:
Finally supporting RCS – green bubbles remain
iOS-Android messaging to support higher-quality images, videos, read receipts, E2E encryption
Scheduling
New text effects
Enhanced Face ID capabilities

Image Source: Apple

iPadOS 18: Redesigned App Experiences

iPadOS 18 brings redesigned experiences across apps, unlocking more capabilities for Apple Pencil.
Customized control center, home screen and an updated photo app from iOS18 coming to iPadOS18 as well.
A floating tab bar makes it easier to navigate between different parts of the app.
Apple brings a native calculator app for iPad.
Math notes and smart script unlock the capabilities of Apple Pencil, leveraging powerful on-device machine learning capabilities.
Messages in iPadOS18 get an update in the form of text formatting, redesigned Tapbacks and the ability to schedule messages at a later time.

Image Source: Apple

macOS Sequoia: Focus on Continuity and Productivity

iPhone Mirroring makes Continuity “More Magical”
Interact with and control iPhone directly from Mac
Safari becomes more productive
‘Highlights’ automatically detects relevant information
from a webpage by using machine learning
Distraction-free video experience
Unified gaming platform
Easier to bring Mac games to iPad and iOS using
Game Porting Toolkit 2
More game titles
Presenter preview and backgrounds for video calls

Image Source: Apple

watchOS18 – Fitness Remains Central to Watch Experience

watchOS18 gets an update on fitness and deeper personalization

Vitals app helps users make more informed decisions about their health on a day-to-day basis.
Watch becomes more personalized with an update to the fitness app, activity rings and Photos watch face.
More intelligent Smart Stack, new widgets, and even suggestions for widgets. The double-tap gesture can now be used to scroll through any app.
Translate app comes to the watch with 20 supported languages.
New APIs for developers to take advantage of the capabilities of Smart Stack and double-tap gesture.

Image Source: Apple

Vision Pro Expands to New Geographies; visionOS2 Uninspiring, but a Step Forward

Apple Vision Pro, exclusively available in the US since February, will now be launched in nine new markets.
visionOS 2 was also previewed with some interesting features:
- Can create spatial photos from existing libraries
- Navigate using new hand gestures
- Watch videos in environments
- Developers will have access to new APIs and frameworks to create more immersive experiences

Overall, we believe the WWDC 24 lived up to its expectations and Apple made it look very smooth. But, like watching a duck on the water, we suspect there is a lot of frantic paddling going on inside. At the same time, Apple is best positioned to make AI and GenAI work well for consumers thanks to its Hardware-as-a-Service business model.

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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Global Smartwatch Shipments Market Share (Q4 2022 – Q1 2024)

Access our quarterly data for global smartwatch shipments market share. This data covers last six quarters.

Counterpoint Quarterly

Wearables Q1 2024

Global Smartwatch Shipments Market Share Quarterly

Published Date: May 29, 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 until 2027.

LATEST

Global Smartwatch Shipments Market Share (Q4 2022 – Q1 2024)
Brands	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Apple	37%	26%	22%	22%	31%	21%
Others	63%	74%	78%	78%	69%	79%

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Highlights:

• Global smartwatch shipments declined 2% YoY in Q1 2024.

• Among the top 10 brands of Q1 2024, Xiaomi, BBK (Imoo) and Huawei registered the fastest YoY growth. Apple witnessed a 20% YoY decline due to the North American market’s contraction and impact of Masimo’s lawsuit in the region, and Huawei’s growth in other regions.

• At 29%, India had the highest share among all regions in Q1 2024. China witnessed the highest shipment growth of 15% YoY, driven by Chinese brands including Huawei, BBK (Imoo) and Xiaomi.

• In North America, HLOS smartwatches had the highest contribution with an 86% share, driven by Apple, Garmin and Samsung.

• Q1 2024 global smartwatch market share rankings (based on shipments):

○ Apple 21%
○ Huawei 10%
○ Samsung 9%
○ Others 60%

*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 2022-2023) by top brands.

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

Global Smartwatch Market Analysis, Q1 2024

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Published Date: May 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.

Insights into China’s Extended Reality (XR) Market in 2023, Outlook for 2024

China’s 2023 VR market shipments mark biggest drop in five years.
Meanwhile, China’s AR smart glasses market thrived, with TCL-RayNeo and Xreal dominating.
Apple Vision Pro to inject some positive energy into China’s VR segment in 2024, AR smart glasses market set for further growth.

China’s Virtual Reality (VR) market shipments dropped 61% YoY in 2023, marking its most significant downturn in the past five years. Conversely, Augmented Reality (AR) smart glasses shipments in the country surged 67% YoY. What factors drove this contrasting trend in China’s VR and AR smart glasses market? Looking ahead, what can we expect? This article aims to provide insights into these developments.

China VR Market Analysis, 2023

China’s VR market experienced a steep decline of 56% YoY in H1 2023, worsening to 65% in H2 2023. VR headset shipments in China decreased by 4% in H2 2023 from that in H1 2023. Demand in China’s consumer segment weakened during H2 2023, while demand in the enterprise segment remained relatively resilient.

Exhibit 1: Market Share (%) of Top OEMs in China’s VR Market

Source: Counterpoint China XR Market Tracker

Shipments of Pico VR headsets in China witnessed a 19% sequential decline during H2 2023, severely hurt by its parent company ByteDance’s strategic shift to reduce investments in XR. Sony’s shipments tumbled 46% sequentially in H2 2023 as the sales momentum of the PSVR 2 faltered in China. DPVR experienced an uptick in sales during H2 2023, with an impressive 121% sequential growth, primarily due to its focus on providing solutions for the enterprise market.

Other developments in China’s VR segment seemed rather subdued.

China AR Smart Glasses Market Analysis, 2023

In contrast to the weakness in China’s VR segment, China’s AR Smart Glasses market thrived in 2023, experiencing a remarkable 64% YoY growth. This growth can be attributed to several factors, including the aggressive release of new products by leading OEMs throughout the year, advancements in optical technologies and ergonomic design, enhanced compatibility with more devices, as well as OEMs’ offline expansion and increased marketing investments.

Exhibit 2: Market Share (%) of Top AR Smart Glass OEMs in China

Source: Counterpoint China XR Market Tracker
Note: In Counterpoint’s sales tracker, AR smart glasses include glasses that enable optical see-through functionality only. Smart glasses without a display are not included in this classification.

TCL-RayNeo and Xreal maintained their market dominance in China throughout 2023.

TCL-RayNeo topped China’s AR smart glasses market in 2023 with an impressive 126% YoY growth. The company primarily focused on promoting three key products during the year – the RayNeo Air 1S, RayNeo Air Plus, and RayNeo Air 2. These products quickly rose to the top of China’s best-selling AR smart glass models list within their respective promotional periods.
Xreal ranked second in China’s AR smart glasses market, achieving 135% YoY growth in 2023. Throughout 2023, Xreal focused on promoting the Xreal Air, Xreal Air 2 and Xreal Air 2 Pro. The company excelled in extending the life cycle of its products through an aggressive marketing strategy.
Rokid, a pioneer in the enterprise AR segment, maintained its position as the third leading OEM in 2023. Meanwhile, INMO, an early adopter of waveguide solutions for commercial AR products, experienced over 200% YoY growth.
Alongside the established leaders, several new entrants made strides in China’s AR smart glasses segment in 2023. These newcomers included Meizu with its MYVU glass, ARknovv and its A1 glass and LAWK with its Meta Lens S1 glass.

China’s AR/VR Market Outlook

Apple’s foray into the VR segment in 2023 failed to ignite a new wave of “Metaverse” enthusiasm in China. However, the Chinese industry anticipates that the availability of the Vision Pro in the Chinese market in 2024, along with innovative applications developed by Chinese developers, will inject some positive energy into this segment. Chinese internet giants such as Alibaba and its subsidiary Dingtalk, Tencent, Trip.com, and gaming company miHoYo, have all announced plans to develop spatial computing-based applications for Apple’s Vision Pro. Nevertheless, we expect the Vision Pro, as well as other new VR/MR(Mixed Reality) products set to be released in China in 2024, to only have a limited impact on boosting the sales volume in this sector.

We expect China’s AR smart glasses market to see continued prosperity, although from a relatively small base. We expect more products featuring waveguide-based solutions to be commercialized in 2024, offering an enhanced experience for various outdoor applications and life assistance scenarios. With the ongoing advancements in AR display and optical solutions, processing chips, wireless connectivity with other devices like smartphones and PCs, as well as improvements in user interfaces and applications, the AR smart glasses market is poised for further growth.

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.

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