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India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023

  • The global smartwatch market continued to contract in Q1 2023 following an 8% YoY decline in Q4 2022.
  • Fire-Boltt surpassed Samsung for the first time in the global smartwatch market, capturing the second spot.
  • All regions except India witnessed a YoY decline in shipments in Q1 2023.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – May 25, 2023

Global smartwatch shipments contracted 1.5% YoY in Q1 2023, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. The 121% growth in India’s shipments managed to restrict the decline. This was the second consecutive quarter of a YoY decrease in global shipments, which were hit by the seasonal decline in demand for products from major players like Apple and Samsung, along with consumer sentiment dampened by global financial pressures.

Research Analyst Woojin Son said, “The global smartwatch market, which had been experiencing steep growth for several years, has entered a period of stagnation since the end of last year when it declined 8% YoY in Q4 2022. Amid a global slowdown in demand for tech devices, the smartwatch consumption trend has also undergone a transformation. The market share of high-price and high-performance HLOS smartwatches*, primarily released by Apple and Samsung, decreased from 60% in Q1 2022 to 53% in Q1 2023. On the other hand, the market share of Basic smartwatches* significantly increased from 23% to 34% driven by rapid growth in the Indian market. Although the overall smartwatch shipment volume declined slightly compared to last year, affordable products that offer a certain level of performance generated substantial demand based on their price accessibility. These low-end smartwatches are also absorbing or replacing the existing smartband market.”

 

Global Top 3 Smartwatch Brands’ Shipment Share, Q1 2023 vs Q1 2022

Global Top 3 Smartwatch Brands’ Shipment Share, Q1 2023 vs Q1 2022Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q1 2023

Market summary

  • Apple’s shipment volume fell 20% YoY in Q1 2023. This was the first time in three years that its Q1 shipments fell below 10 million units. As a result, Apple’s market share, which was 32% in Q1 2022, dropped to 26%. This can be attributed to the ongoing macroeconomic crisis, which has led to decreased accessibility to relatively higher-priced Apple Watches. Despite the Apple Watch Series 8’s release about a month ahead of its predecessor, it did not achieve the same level of success as the previous model.
  • Indian brand Fire-Boltt surpassed Samsung for the first time and reached the second position in the global market. Its shipments increased by approximately three times compared to the previous year and saw a 57% growth compared to the previous quarter. This reflects the rapid growth of the Indian market, just like other local brands such as Noise and boAt.
  • While Samsung experienced a 15% increase in shipments in its key market North America, it witnessed a decline in shipments in other major markets. As a result, its overall global shipments declined by 15% compared to the previous year and 21% compared to the previous quarter.
  • Huawei, the most influential Chinese OEM, saw a 14% YoY decline in its shipments in the Chinese market, which is a key market for the company. However, Huawei saw increased shipments in India, LATAM and MEA, limiting its overall decline in global shipments to 9%. Huawei has been employing a strategy of relaunching models previously released for the Chinese market in the international market.

 

Smartwatch Shipment Share by Region, Q1 2023 vs Q1 2022

India smartwatch market share

Note: Figures may not add up to 100% due to rounding

Source: Counterpoint Global Smartwatch Model Tracker, Q1 2023

In terms of the regional markets, India surpassed North America, reclaiming its position as the top region with a 27% share of global smartwatch shipments. Senior Analyst Anshika Jain said, “India’s smartwatch market grew 121% YoY in Q1 2023 driven by affordability, rising customer demand and availability of a wide variety of options in the budget segment. Around 40% of the total shipments were driven by the <INR 2,000 (<$25) price band, its highest proportion ever. The share of India-based players crossed 90% for the first time as they were quick in terms of upgrading their portfolios and adapting their products to customer needs at a reasonable price point.”

China’s smartwatch market experienced a significant contraction of 28% compared to the previous year, as the country’s economy showed a slower recovery than expected. This decline represents the sharpest contraction among the major regional markets and the lowest quarterly shipments since the outbreak of COVID-19 in Q1 2020.

*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.

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

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press@counterpointresearch.com

 

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Smartwatch Market Grows 13% YoY in Q1 2022; Apple Stays First, Samsung Solidifies Second Place

  • The market grew 13% YoY and continued double-digit growth for the fifth consecutive quarter.
  • Apple maintained its lead, while Samsung solidified its second place.
  • Xiaomi recorded first Top 4 position with 69% YoY growth, and is breaking its shipment record every quarter.

Seoul, Beijing, Boston, London, Toronto, New Delhi, Hong Kong, Taipei – May 31, 2022

The global smartwatch market recorded 13% more shipments compared to the same period last year, despite concerns over economic slowdown and inflation, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker. Despite -24% QoQ due to weak seasonal demand, Xiaomi performed well with it record-highest quarterly shipments.

Associate Director Sujeong Lim said, “Although the global smartwatch market saw little growth in 2020 due to the impact of Covid-19, it has continued to perform well since its rebound last year. In particular, Apple accounted for more than a third of the total shipments last year, and it is further increasing its influence with a market share of 36% in the first quarter of this year. The high brand loyalty of iPhone users is one of the success factors of the Apple Watch. This popularity appears to be higher among the younger generation, making Apple an irreplaceable market leader. Of course, everything was possible because the high performance of the product and the excellent connection among supported iOS devices. We believe that Apple’s market share is likely to rise further by the end of this year.”

Global Top 8 Smartwatch Brands Shipment Share, Q1 2022 vs Q1 2021

Source: Counterpoint Global Smartwatch Model Tracker

Market Summary:

  • Apple maintained a solid lead and increased 14% YoY in Q1 2022. Some shipments carried over to Q1 2022 due to a month late launch of Apple Watch 7, which helped continue the strength of the brand.
  • Samsung solidified second place with 46% YoY increase in shipments. It grew significantly in the APAC region with the popularity of Galaxy Watch 4 series.
  • Huawei remained flat YoY in terms of shipments. Due to the weak position in the international market caused by GMS restrictions, the proportion of the Chinese market in the brand’s total shipments is gradually increasing.
  • Xiaomi recorded its first Top 4 position with 69% YoY growth and is breaking its shipment record every quarter as it rapidly penetrates globally. A large proportion of its sales come from the low-end segment under $100.
  • Garmin ranked fifth in terms of shipments, but came in third in terms of revenues thanks to its higher ASP. It occupies the majority portion in the premium segment over $500.
  • Amazfit maintained its market share by occupying 6th place thanks to the GTR 3 and GTS 3 series that launched in the fourth quarter of 2021. In the meantime, it has been working to expand outside of China and has had some success increasing its presence in Europe.
  • With the China Kids Watch market sluggish at -7% YoY, and as Huawei and Xiaomi expanded their presence in this segment, imoo suffered a double-digit YoY shipment decline.
  • After the merger with Google, Fitbit appears to be undergoing an internal reorganization. As a result, there were no new models released last year, and the transition to Wear OS was delayed, so its sales decreased compared to the same period of the previous year.

 

Smartwatch Shipment Proportion by Region, Q1 2022 vs Q1 2021

Source: Counterpoint Global Smartwatch Model Tracker, Q1 2022

 

By region, while most major regions grew YoY, only Europe recorded flat growth. Although Apple and Samsung continued to grow year-over-year, other major brands such as Garmin and Fitbit performed weakly in the European market during this period.

Ms. Lim said, “We initially expected the war between Russia and Ukraine to have minimal impact on the market in Q1, but the prolongation of the conflict and the resulting logistical constraints have begun to affect the European region. The impact of the war will become more serious in Q2”.

 

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:

Sujeong Lim

 

Neil Shah


Follow Counterpoint Research

press@counterpointresearch.com

 

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Smartwatch Market Grows 27% YoY in Q2 2021; Apple Watch User Base Crosses 100 Million

  • The market grew a healthy 27% YoY, thanks to strong demand for sub-$100 smartwatches.
  • Samsung and Garmin posted remarkable YoY growth even as Apple maintained its lead.
  • Rapid growth expected in India’s market with the rise of local brands such as Boat and Noise.

Boston, Beijing, Toronto, London, New Delhi, Hong Kong, Taipei, Seoul – August 26, 2021

Showing a full recovery from COVID-19, global smartwatch shipments in the second quarter of this year increased 27% compared to the same period last year, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker.

Apple maintained its solid No. 1 position in terms of shipments, but its market share declined slightly compared to the same period last year due to intensifying competition with Chinese and Indian brands. Among the global Top 5 smartwatch OEMs, Samsung and Garmin showed a remarkable shipment growth of 43% and 62% YoY, respectively, exceeding the average market growth rate and recording higher growth rates than other top brands.

Thanks to the steady popularity of the Galaxy Watch 3 and Watch Active 2, Samsung showed a quick recovery from last year’s somewhat sluggish performance. Garmin recorded its highest shipments ever during the quarter. Among the Top 5 brands, only Huawei fell compared to the same period last year. The decline in its smartphone business seems to have affected its smartwatch sales, as the smartwatch from such a vertical player is tightly optimized with the brand’s smartphones and the users’ loyalty to the brand’s ecosystem of offerings.

Shipments of Global Top 5 Smartwatch OEMs: Q2 2021 vs Q2 2020

 

Counterpoint Research Shipments of Global Top 5 Smartwatch OEMs Q2 2021 vs Q2 2020

Source: Counterpoint’s Global Smartwatch Shipments Tracker, Q2 2021

Apple Watch active user base crosses 100 million; sub-$100 segment grows 547% YoY

Commenting on the smartwatch market outlook, Senior Analyst Sujeong Lim said, “The smartwatch attach-rates for smartphones have been steadily rising. Apple’s ecosystem is seeing a greater attach rate as the brand continues to bake in attractive designs, health features and related services around it. Apple Watch’s user base crossed the 100-million mark for the first time during the quarter ended June, capturing the lion’s share of the smartwatch user base globally. The US continues to be the key Apple Watch market, contributing to more than half of its user base, with an attach rate of close to 30%.”

Lim added, “Looking at the success of Apple Watch, more OEMs have entered the smartwatch market with a relatively less advanced OS but comparable fitness and health-related features, and stylish designs at affordable prices targeting hundreds of millions of potential users globally. The pandemic has further pushed consumers towards being more health-conscious and features such as SPO2 and heart rate monitoring have trickled down to the sub-$100 smartwatch segment. The sub-$100 smartwatch segment grew a massive 547% annually, highlighting its mass-market reach.”

North America largest, India fastest growing market

China, the second largest market after North America, grew in terms of volume but its growth rate was somewhat lower than that of other regions, and its share by region decreased. As seen in the smartphone market, the recovery of consumer spending here after the pandemic has been slower than in other regions. Also, the space vacated by HuaweiHONOR in China is yet to be filled.

Commenting on high growth markets, Senior Analyst Anshika Jain said, “India was the smallest market in the second quarter of last year, accounting for less than 2% of the total market, but its share increased to 6% in just one year. The proliferation of sub-$100 affordable, feature-rich smartwatches from Chinese brands such as Xiaomi, realme and OPPO, and Indian brands such as boAt and Noise has been one of the key growth drivers.”

Source: Counterpoint’s Global Smartwatch Shipments Tracker, Q2 2021.

Top-selling Smartwatches Globally, Q2 2021

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:

Sujeong Lim


Anshika Jain

 

Neil Shah

 

Follow Counterpoint Research
press@counterpointresearch.com       

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Global Smartwatch Shipments Grew 41% YoY in 2018

Apple Series 4 was the best-selling model with just one quarter of shipments. Counterpoint’s preliminary assessment that Apple Watch Series 1 was more popular in Q2 2018 was overestimated, as Series 3 actually shipped equally well until the arrival of the redesigned Series 4 in Q4 2018

Top five brands contribute to 70% of the market shipments. Fitbit, Amazfit, and Huawei grew exponentially in 2018

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

June 25, 2019

Global smartwatch shipments grew a healthy rate of 41% year-on-year (YoY) in 2018 driven by Apple, imoo, Fitbit, and Samsung, according to the latest research from Counterpoint’s Global Smartwatch Tracker.

Commenting on the findings, Counterpoint Research Analyst, Satyajit Sinha, said, “Apple Watch shipments grew a solid 22% YoY in 2018. Apple Watch Series 4  was the star performer. It sold 11.5 million units during 2018, making it the best-selling model for the year.  We believe its success was due to its focus on health-related features like ECG and fall detection. Further, it speaks volumes of how far Apple has come with Apple Watch as a meaningful health device.

During our last year’s Q2 2018 preliminary estimates, we overestimated the contribution of Apple Series 1 shipment compared to the Series 3. However, our further supply chain and channel checks revealed the relatively higher contribution of Apple Watch Series 3. As a result, Series 3 becomes the second most popular smartwatch model during 2018 instead of Series 1.”

Sinha, further added, “The overall smartwatch segment is going through a phase of evolution of cellular capabilities, which can make it a true standalone wearable device. Players like Apple, imoo, Samsung, Huawei, Ticwatch, and other kids watch brands were the early adopters. However, Apple and imoo cellular smartwatch contributed to 13% and 10% of 2018 shipments, respectively.”

Exhibit 1: Global Smartwatch Shipments market share by in  2017 vs. 2018 vs. 2019E

Source:  Counterpoint Research Global Smartwatch Tracker

Commenting on other vendors’ performance, Senior Analyst, Sujeong Lim, noted, “Samsung grew exponentially at 90% YoY as the Korean brand’s market share jumped to 9% in 2018. Samsung had a 50% of smartwatch shipments, represented by its Galaxy Watch series launched at the beginning of Q3 2018 with better battery life. The rotating bezel to navigate the UI and a very traditional round clockface design are the most appealing Samsung features for smartwatch consumer.”

Commenting on the Huawei’s smartwatch sales, Counterpoint Senior Analyst, Ethan Qi, added, “Huawei grew exponentially at 129% YoY helping the Chinese brand’s market share grow to 2% in 2018. Banking on its proprietary OS, striking design, and affordability, Huawei is gaining good traction, and we expect Huawei’s smartwatch segment will be its only consumer segment which will see a growth in 2019. We expect growth to be particularly strong in China and South East Asia.”

The top five best-selling smartwatches accounted for 48% of the market in 2018. Three out of the top five models came from Apple. For Fitbit, the launch of the Verse smartwatch was a turning point as the brand was struggling to get a foothold in the market. The other entrant in the top five best-selling models list was imoo’s Z3, a 4G LTE based kids watch. The Z3 is supported by Qualcomm Wear 2100 and is IPX8 water-resistant.

 

For our latest in-depth research on the smartwatch segment, follow our research portal here.

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Satyajit Sinha

Sujeong Lim

 

Ethan Qi

 

Counterpoint Research
press(at)counterpointresearch.com

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