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India TWS Shipments Increase 168% YoY in Q2 2022; Local Brands Capture Record Share at 81%

boAt continued to dominate with a 46% share, while Noise took the second spot for the third time in a row.
Mivi made it to the top five for the first time with a 6% share in Q2 2022.
Online channel penetration stood at 79%, with Flipkart capturing half of these shipments.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – September 1, 2022

India’s TWS (True Wireless earbuds) shipments delivered a strong quarter with 168% YoY growth and 62% QoQ growth in Q2 2022, according to the latest research from Counterpoint’s IoT Service. The increased penetration of the low-price band (₹1,000-₹2,000 or $25-$50), multiple discount offers and growing popularity due to convenience of use led to this huge jump in market demand.

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “India’s TWS market continues to show phenomenal growth due to the reasons like availability of low-priced new TWS devices, better features and functionalities like ANC, innovative designs, and low-latency mode for gaming. The market is expected to grow 47% in 2022 as new brands continue to arrive even as existing ones expand their channel presence. Besides, consumer demand is expected to rise during the festive period as people are also seeing TWS devices as a good option for gifting purposes.”

On local production, Jain added, “The share of domestic manufacturing stood at 16%, the highest ever. With boAt, Noise, Mivi and pTron ramping up their local manufacturing capabilities, these brands together accounted for 98% of the domestic shipment volume in Q2 2022. ‘Made in India’ has been taking the spotlight since the beginning of this year. But more brands started focusing on local manufacturing during this quarter. Gizmore and new entrant SWOTT also offered locally produced devices in Q2 2022. Further, we expect to see ‘Make in India’ devices from Truke and Portronics as they focus on localizing their manufacturing to maintain price competitiveness.”

Talking about the dominance of Indian brands, Associate Research Director Liz Lee said, “During Q2 2022, homegrown brands captured the top five brands rankings for the first time. These brands together took over 70% share and were quite aggressive in their marketing strategies, introducing new advanced alternatives at affordable prices along with discount schemes through various sales events. Besides, there has been a growing emphasis on roping in brand ambassadors to capture customer mind share. The top position was taken by boAt, followed by Noise and Boult Audio. Mivi entered the top five list for the very first time due to its focus on R&D and designing better quality products under the ‘Make in India’ scheme.”

Source: India Hearables (TWS) Shipments, Model Tracker, Q2 2022

Market summary for Q2 2022

boAt maintained its leadership with 236% YoY growth in Q2 2022. The substantial demand was driven by its new low-priced alternatives and big sales events like Amazon’s summer and mega music fest sales. The Airdopes 131 remained the bestseller model, contributing a 15% share to the overall TWS market shipments.
Noise maintained its second position for the third consecutive quarter with 190% YoY growth driven by its locally produced TWS earbuds. The brand again refreshed its low-priced VS series with the launch of the Noise Buds VS104 in Q2 2022. The Noise Buds VS102 was the brand’s most popular model, entering the top 10 models list for the quarter.
Boult Audio again took the third spot and reached a record high volume with 233% YoY During the quarter, it offered multiple new launches in the low-price segments (₹1,000-₹2,000 or $25-$50). The brand also participated in Amazon sales events to drive volumes. The Boult Audio Airbass X Pods grabbed a spot in the top 10 bestseller list, contributing 33% of the brand’s volume.
Mivi made it to the top five brand ranking for the very first time with more than 2X QoQ The Duopods F30 and Duopods M20 were its most popular devices.
PTron took the fifth spot with a 4% The brand actively participated in multiple sales events on different e-commerce platforms and offered two new launches at an entry-level price band (less than ₹1,000 or $13). The PTron Bassbuds Duo was its bestseller model, making it to the top 10 model rankings.

Other emerging brands in Q2 2022

OPPO saw 171% YoY growth driven by its frequent new launches. The brand launched the Enco buds Air 2 Pro in Q2 2022 in the mid-price segment. It was the second most popular model after the Enco Buds in the brand’s TWS offerings.
OnePlus maintained its position in the top 10 list. It released a new model Buds Pro in the mid-price segment in Q2 2022. The model is the least-priced TWS device in the brand’s portfolio.
Samsung took the first position in the premium segment driven by the popularity of its Galaxy Buds 2 and Galaxy Buds Pro models. The brand also offered discounts during Amazon’s summer sale.
Truke registered 75% YoY growth in Q2 2022. The brand offered two new alternatives at low price points with ENC technology. The Buds F1 model attained a record of selling 10,000 units on its launch day on Flipkart

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.

Analyst Contacts

Anshika Jain

Liz Lee

Counterpoint Research
press(at)counterpointresearch.com

phone (1) launch: much ado about Nothing

This afternoon, the latest smartphone brand will launch in selected markets across Europe, the Middle East and Asia. The Nothing phone (1), spearheaded by OnePlus co-founder Carl Pei, promises to “remove barriers between people and technology to create a seamless digital future.”

As a UK-based company, Europe will be one of Nothing’s key target markets. But Europe is a notoriously difficult market to crack, so what are Nothing’s chances of success?

The phone

Let’s get something clear straight away…I don’t like the name. There, I’ve said it. I personally think it’s a bit awkward! Nothing phone (1), especially with the brackets, doesn’t flow well, and tends to require further explanation to make someone understand what you are talking about. Even telling colleagues that I was “writing an article about Nothing” was met by initial confusion. It also lends itself a bit too easily to wordplay and puns (as you may notice throughout this article).

The next issue is that the Nothing brand is largely unknown. There is a lot of hype amongst enthusiasts, but Carl Pei is not a household name outside of the tech community. Nothing’s first and only other product, the ear (1) TWS earbuds, has done ok (just under a million units sold globally so far), but this is still leagues behind the market leader Apple that sold 17 million AirPods in Q1 2022 alone. Nothing will therefore need to focus on raising awareness of the brand to grow visibility in the mass market.

To this end, Nothing seems to be trying to do an Apple-esque job with its marketing, and has managed to ratchet up the hype by largely doing nothing (excuse the pun). The problem is that it doesn’t yet have the clout to back it up, and the device certainly isn’t as premium as an iPhone. Overall, the phone is shaping up to be a solid mid-range device; nothing more, nothing less (there’s another one for you).

On the plus side though, it helps that Nothing is a UK-startup (homegrown companies are always well received, especially with the recent rapid growth of the relatively new Chinese vendors), plus its ecosystem approach, including the ability to integrate products from other brands more smoothly, is intriguing.

Nothing is also trying to make the design the differentiating factor. The see-through case and LED lighting is pretty cool and unique, but will this be enough? The UI and overall experience will be vital to grow mindshare and get phone (1) to stand out from the crowd. And there’s a big crowd indeed.

The competition

Europe has seen a mass influx of new smartphone brands over the last few years, with the likes of Xiaomi, OPPO, realme and vivo all launching in the region to try to capitalise on Huawei’s exit. Huawei offshoot HONOR is also now making a play as an independent brand, and then of course we have incumbents Samsung, Apple, Nokia, Motorola and Google rounding out the field.

Xiaomi has lost a bit of ground since its peak in mid-2021, but it looks to have largely recovered from supply issues, while OPPO, realme, HONOR and vivo are all growing steadily. Even Motorola and Nokia HMD are seeing a bit of a resurgence in recent years.

Western Europe is a very crowded market

Source: Counterpoint Research Market Pulse

The strategy

While there isn’t really an ideal number of vendors, this does make for a very crowded market. However, Nothing has one important advantage: the operators. The operators are a key channel in Europe, and vendors that rely on a direct or online-only approach will always have limited growth prospects. Nothing, meanwhile, has forged partnerships with operators O₂ in the UK and Deutsche Telekom in Germany, which will give it an edge over some vendors.

Then there is Nothing’s ‘invite-only’ model. OnePlus found moderate success with this approach in its early days, and Nothing will likely follow a similar trajectory: a cool thing for those in the know, but very niche. Yes, with OnePlus struggling somewhat at the moment, Nothing could potentially capitalise and grab share within the tech-savvy community. But sales will always be limited without mass market availability.

Lastly is the issue of timing. The current economic conditions in Europe are dire, with record inflation levels severely impacting consumer spending. Even if the phone (1) is pitched as an affordable iPhone challenger, many consumers may wait until the macro environment settles down before taking a chance on something new, however affordable it may be. This could leave the high-profile launch as a hiding to nothing (these puns are hard to resist).

The prospects

With a brand new, largely untested product (including the new Nothing OS software that may need to go through multiple updates to get everything ironed out) and stiff competition from numerous Chinese vendors, not to mention Samsung and Apple, Nothing has its work cut out. It may make a bit of a splash initially, but it will take time to gain momentum.

OnePlus reached 5% of smartphone sales in Western Europe at its peak in August 2021, so anything close to that would be a big success for Nothing. But it will likely take a number of years, launches in many more markets (especially France, Italy and Spain) and multiple iterations of the product to reach this level. For the latter, the post-purchase experience and customer feedback will be critical. But with Carl Pei at the helm though, anything is possible. So here goes Nothing (sorry).

Nothing ear (1) Review: Unique Semi-transparent Design, Clean Sound, Good ANC

The Nothing ear (1) TWS earbuds are priced at $99.
The earbuds feature ANC and transparency modes.
Nothing has put a lot of emphasis on offering a unique design.

The TWS earbuds are one of the fastest growing categories in hearables. As a result, today we have several brands offering TWS across different price points. Even as the market is already saturated, a London-based start-up, Nothing, set up by ex-OnePlus co-founder Carl Pei, has chosen TWS as a category to launch its first product, Ear (1).

In Q1 2021, TWS sales were up 44% YoY, where more consumers preferred the mid-range and budget TWS under $100 amid the COVID-19 pandemic. Therefore, priced at $99, Nothing’s first TWS has carefully chosen its target audience.

The ear (1) has a lot to offer on paper, but how does it perform in day-to-day usage? Here is our review, after using the device for over a month now.

Unique semi-transparent design: A key differentiating factor

Nothing’s unique approach to design and experience starts right from the paper packaging. It features a small sleeve at the bottom that needs to be peeled off to reveal the silver box inside. The box includes the charging case and earbuds, a small, braided USB-C charging cable, and two sets of silicon ear tips (small and large). The medium ones are already on the earbuds.

Both the earbuds and charging case feature semi-transparent plastic on the outside, and a black-and-white color scheme. The charging case is a square-shaped box featuring a clear plastic base and lid. The battery and circuitry are contained in a white module with earbuds charging pinpoints on the top. The hinge of the lid is solid and has a strong magnet to snap shut when you close it. There is a small LED on the top which indicates charging and pairing modes.

The transparent, black and white design scheme offers a retro look to the Nothing ear (1).

There is a small dimple on the top of the lid, which adds to the design – just in case you want to hold it like a fidget spinner. On the right, you will find a USB-C port for charging, and a small circular button to put the TWS into pairing mode.

A similar design scheme continues for the earbuds. The stem has transparent plastic that shows off the circuit and ICs inside, whereas the buds that protrude are made from glossy white plastic.

Nothing has gone all out to offer a unique design that makes the ear (1) stand out from the crowd.

The stems also have white and red dots on them to indicate left and right buds, respectively. Another interesting design element is the “Nothing ear (1)” branding that is printed in a dot matrix pattern on the stem of each earbud.

“Nothing broke into the top three brands in the premium TWS segment in India in its debut quarter by capturing a 7% share in the segment. Competitive pricing and differentiated design helped the brand gain good mindshare among consumers. But it remains to be seen how well Nothing manages to work around with the ongoing global supply chain constraints,” said senior analyst Anshika Jain, who tracks India’s TWS market at Counterpoint.

Nothing ear (1) specifications, set-up and companion app

Driver size:6 mm
Weight: Each earbud – 4.7 g, charging case with earbuds – 57.8 g
Connectivity: Bluetooth 5.2, Fast Pair
Supported Codecs: SBC, AAC
Charging: USB-C, Qi wireless charging
Claimed battery life: Up to 34 hours with ANC off, up to 24 hours with ANC on
Compatibility: Android 5.1 and above, iOS 11 and above
Water resistance: IPX4 splash resistance

Setting up the ear (1) is very simple. On Fast Pair compatible devices (Samsung Galaxy S21 Ultra and Z Fold 3 in my case), a pop-up to connect appears within seconds of opening the earbuds case. It first directs you to download the companion app from Play Store, while a prompt to pair also appears at the same time. On iPhones, you will have to go to Settings > Bluetooth and manually pair the earbuds.

While you don’t necessarily need the companion app to connect the Ear (1) with your smartphone, it does unlock certain features. First, the app lets you see the battery level of individual earbuds and the case. Second, you can adjust the ANC level between Light and Medium, and switch between preset equalizers.

The Fast Pair feature enables quick pairing of earbuds with a compatible smartphone, and it worked well for me.

Lastly, you can also configure gesture controls for left and right ears – Triple Tap for the previous or next song, and Tap and Hold for enabling or disabling ANC. The earbuds also support swipe gestures, where you slide your finger up or down on the earbud stem to increase or decrease volume.

“The Ear (1) from Nothing is an eye-catching TWS with a unique transparent and undeniably attractive design. As designs of most TWS gadgets are similar, the Ear (1) is a challenging attempt in the market. With a price of $99 and features like ANC and transparency modes, it is expected to outperform second-tier players in the mid- to high-price segments,” said senior analyst Liz Lee, who tracks the global TWS market at Counterpoint.

Performance: Impressive audio quality, effective ANC

Before getting into performance details, I would want to highlight that the earbuds are quite comfortable to wear for long hours. They snugly fit into the ears. For me, the medium silicon tips worked well to get a tight seal, thus offering good passive noise isolation. This is an important factor for any earbud as it also impacts the audio listening experience.

My primary device for testing the Nothing ear (1) was the Samsung Galaxy Z Fold 3 but I also switched the usage between the iPhone Xs and Asus ZenBook laptop for conference calls. Switching between devices was easy – simply open the smartphone app and tap connect. But a multi-point connection that automatically switches between devices, like on the Jabra Elite series TWS, could have been better.

On both the Galaxy Z Fold 3 and iPhone Xs, music was streamed via the Apple Music app. While the songs were downloaded in lossless quality, streaming to earbuds via Bluetooth was in compressed AAC encoding. Not to say that it is bad, but support for high-quality aptX or LDAC could have been better. More recently, Nothing announced a partnership with Qualcomm where it will be using Snapdragon chips for its future products. Hopefully, the next TWS product will be able to take advantage of Snapdragon Sound for high-quality wireless audio streaming.

Talking about performance, Teenage Engineering, which is responsible for the audio tuning, has done a good job. While most earbuds in this price range are tuned to be bass heavy, the Ear (1) offers a well-balanced, V-shape audio signature with plenty of punch. The tuning is well suited for a wide variety of music genres that you would like to listen to. You get good low- and mid-range frequency response, but highs can sometimes be a little sharp. Throughout the testing, my equalizer was always set on “Balanced” while ANC was set to “Maximum”.

The Nothing ear (1) offered good instrument details and clear vocals between both voices when listening to STAY by Kid LAROI & Justin Bieber. Even the reverb at the beginning of the song around 0:20 seconds is clearly audible.

Listening to a little offbeat track like Manike Mage Hithe by Chamath Sangeeth, Yohani and Satheeshan was a pleasing experience. The voice is crisp and clear, and around 0:22 seconds, you get a nice thumping bass. I like how the mid frequencies are slightly amplified to offer balanced audio.

The earbuds also offer a very spacious sound with wide soundstaging, something that you can experience while listening to Cymatics by Nigel Stanford. The Ear (1) perfectly picks up every little detail from the track, such as the drums, piano and the low-frequency vibrations that keep the track quite lively as it gets busy.

Balanced sonic signature offers a good listening experience with slightly punchy bass.

Even movie-watching experience on apps like Netflix was good. You get a nice spatial sound when watching movies like San Andreas or The Day After Tomorrow, which have natural calamities like earthquakes and tsunami.

The latency while gaming was not that good. The delay between walking and hearing the footsteps, or firing a bullet and hearing it, at least had close to one second delay, which may not help you in games like Call of Duty: Mobile or PUBG.

The Nothing ear (1) is also good for watching movies and TV shows but not that great when gaming.

Coming to ANC (Active Noise Cancellation), you get two options to choose from – Light and Maximum. If you are sitting in a quieter environment, like a conference room, the Light setting should be sufficient. But in case of noisy places, Maximum does cut out most of the noise effectively, if not all.

During my testing, the air conditioner and ceiling fan noise got reduced to a great extent. However, as I live closer to the highway, I could still hear the noise from vehicles passing by and their honking.

Battery life and call quality is decent

The charging case can be charged both wired (using Type-C) and wirelessly (using Qi-compatible chargers). It takes about an hour and 20 minutes to fully charge the case. The earbuds also feature fast charging, where 15 minutes of charging takes them from empty to 40%, while offering music listening time of a little over one hour. Wireless charging takes around five hours to fully charge the case.

Fully charged case and earbuds offer up to a total of 20 hours of battery life.

On a full charge, the earbuds would last about three and a half hours with ANC on, and a little over four hours with ANC off. The case offers about four additional full charges (depending on the usage), taking the total battery life to near 20 hours.

The call quality was good, with decent amount of noise cancellation. My voice was audible to the recipient even when walking next to a busy road or in an open windy environment. However, at times, the voice sounds a little hollow when sitting in an enclosed room.

During my usage, I did come across a persistent issue, which will be an area of improvement for Nothing. Most times, the earbuds don’t disconnect after removing them from the ears. They are still connected after being kept back in the case. Possible areas to look for a fix are the in-ear detection and the charging pins in the case, which should detect their removal from the ear and disconnect them automatically.

Key Takeaways

Nothing has ensured that its first TWS makes an impact with a differentiated transparent design.
The Ear (1) offers surprisingly good sound quality and ANC in its price segment.
Features like Fast Pair and wireless charging make it an attractive option.
There are some bugs that Nothing needs to remove with the Ear (1) successor.
In the next version, we would love to see support for high-res audio and multi-point connection to switch between devices quickly and automatically.

India TWS Shipments Reach Record 8 mn in Q3 2021; boAt Continues to Dominate while Apple Bounces Back

boAt set the record of being the leader for the fifth consecutive quarter with 171% YoY growth.
The top five brands reached their highest ever shipments in a single quarter.
Apple led the premium segment (>INR 5,000) with a 63% share while Nothing managed to take the third spot in the segment in the first quarter of its launch.
Local brands continued to record the highest penetration with a 63% share.
The average selling price (ASP) was down 22% YoY.

New Delhi, Beijing, Hong Kong, Seoul, London, San Jose, Buenos Aires – November 2, 2021

India’s TWS market posted 55% YoY growth in Q3 2021 to reach the highest shipments ever at around 8 million, according to the latest research from Counterpoint’s IoT service. Brands pushed high amounts of inventory into the retail channels ahead of the festive season. Along with this, new entrants, discount offers, sales events and brands expanding into the low-price segments with feature-rich TWS offerings were the major success factors for the TWS growth in India during the quarter.

Commenting on the overall market, Senior Research Analyst Anshika Jain said, “The Indian TWS market witnessed highest ever shipments in a single quarter in Q3 2021 driven by the strong festive planning, new launches and multiple sales events on major e-commerce platforms as well as brands’ own websites. We also saw the maximum number of new launches in Q3 2021 with a major emphasis on the low- to mid-price segments (less than INR 2,999). In this quarter, brands like realme and 1MORE followed the partner brand/sub-brand strategy with the launch of Dizo and Omthing respectively to expand their reach and enhance competitiveness.”

“In terms of features, there was an increased emphasis on Active Noise Cancellation (ANC) and gaming. Key players such as Truke and Ptron came up with their first ever gaming TWS earbuds. Besides, prominent brands introduced various new models in the premium segment as well for tech enthusiasts. For instance, the OnePlus Buds Pro, Samsung Galaxy Buds 2, Nothing Ear 1 and JBL Pro Plus were presented as new alternatives, which further increased the ASP of the premium segment by 20% QoQ, apart from Apple’s huge shipments contribution,” she added.

Talking about domestic manufacturing, Research Associate Anam Padha said, “Domestic manufacturing is gaining more significance as more brands continue to partner ODMs to bring made-in-India devices and enhance their production capabilities. Noise partnered with Optiemus, promising to offer multiple locally made devices in the coming quarters. Similarly, realme announced a partnership with Khy Electronics. Another Indian brand, Ambrane, set up a unit to locally manufacture audio devices. Ptron also elevated the progress of its domestic manufacturing capabilities this quarter and expects to double its TWS revenue by next year.”

“With domestic manufacturing on the rise, the quarter saw boAt offering its first made-in-India TWS model Airdopes 101 while Ptron launched its second locally produced TWS model Bassbuds Ultima, equipped with ANC,” she added.

Source: India Hearables (TWS) Shipments by Model Tracker, Q3 2021

Market Summary:

boAt captured a 35.8% share in the overall India TWS market in Q3 2021. This also represents its highest shipments volume since its inception. Apart from its strong integrated marketing strategy and keeping up with the trends of multiple launches and value-for-money offerings, it also actively participated in multiple sales events, like the much-awaited Amazon Great Freedom Sale and Amazon Prime Day Sale. It even hosted a ‘boAthead Days’ sales event on its e-brand store. Above all, its model Airdopes 131 was the bestseller for the second time and reached 1 million units for the first time.
realme rose to the second spot with an 8.1% share driven by the success of its mid-range ANC device Buds Air 2 and latest release Buds Q2 Neo in the low-price segment. In addition, realme stood number one in the mid-price segment of INR 3,000-INR 4,999. The Chinese brand also hosted a ‘realme Fan Festival’ event on its e-commerce website to provide the latest devices at a more affordable price point.
Noise had a 7.7% share and moved one step up to grab the third spot driven by multiple offerings in the low-price segment. Like boAt, it also launched new devices during the Amazon Prime Day Sale and offered multiple discounts. It added newer TWS devices such as the Buds VS102, Buds VS103 and Buds VS303 to its low-range VS series during the quarter.
Apple saw record shipments, taking the fourth spot with a 7.6% share in the Indian TWS market. Its model Airpods (Gen 2) performed well this quarter. Inventory for the festive season, Apple Days sales event and Back to School program accelerated its growth. Moreover, additional inventory on account of Apple’s plan to bundle free Airpods with the iPhone 12 series in the fourth quarter helped the brand achieve 67% YoY growth.
Boult Audio, an Indian brand, took the fifth spot for the first time ever. It held a 5.3% share with 147% YoY growth. Its portfolio covers the entry-level to mid-range segments. It derived this substantial demand by not only offering multiple new launches at a low price point but also putting its models on discounts during Amazon’s Great Freedom Festival.

Other Emerging and Fastest-growing Brands in Q3 2021:

Dizo: Among the new entrants in Q3 2021, Dizo was the fastest growing brand. It introduced four new models in the TWS market within the first quarter of its launch. The major highlight of the brand was its introductory pricing and focus on features like ANC and ‘transparency’ mode at an affordable price point.
Nothing: Nothing broke into the top three brands in the premium TWS segment in its debut quarter by capturing a 7% share in the segment. Competitive pricing and differentiated design helped the brand gain good mindshare among consumers.
Truke: Truke was another fast-growing brand, with its shipments tripling YoY. The online-centric brand plays in the entry-level and low-price segments. Truke also launched its first ever gaming series TWS earbuds in Q3 2021.
OPPO grew 63% YoY and had its TWS products spread across all price tiers. Its latest release in the low-price band, the Enco Buds, drove decent volumes for the brand.
OnePlus added one more SKU to its TWS portfolio. However, the OnePlus Buds Pro mainly caters to the premium segment. OnePlus also offered discounts on its existing models during the Amazon Freedom Sale and at Amazon Rakhi Store.
Samsung also launched a new model, the Galaxy Buds 2, and pushed its sales by offering it free with the purchase of new Samsung phones Galaxy Z Flip3 and Z Fold3. Its existing models also performed well, which helped the brand take the second spot in the premium segment (>INR 5,000).

Background

Analyst Contacts:

Anshika Jain

Anam Padha

Counterpoint Research
press(at)counterpointresearch.com

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Insights Tag: Nothing

India TWS Shipments Increase 168% YoY in Q2 2022; Local Brands Capture Record Share at 81%

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