- Global smartwatch shipments fell for the second consecutive quarter, 1.5% YoY this time
- The market growth in India was driven by affordability, rising customer demand and availability of a wide variety of options in the budget segment
Counterpoint’s latest research revealed that while the global smartwatch shipments contracted 1.5% YoY in Q1 2023, India’s shipments witnessed a whopping 121% growth. This was the second consecutive quarter of a YoY decrease in global shipments, but the decline was restricted, thanks to the Indian market. As per the study, all regions except India witnessed a YoY decline in shipments this quarter.
Global Smartwatch Model Tracker pointed out that worldwide shipments were hit by the seasonal decline in demand for major products and the low consumer sentiment due to global financial pressures. It must be noted that the global smartwatch market had fallen by 8% YoY in Q4 2022.
Coming to the regional markets, the tracker analysed that India surpassed North America to become the top region with a 27% share of global smartwatch shipments. As per senior analyst Anshika Jain, the market growth in India was 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 <Rs 2,000 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,” she added.
Apple stood first in terms of shipment volume, though it declined 20% YoY to fall below 10 million units in Q1 2023. Counterpoint noted that Indian brand Fire-Boltt surpassed Samsung for the first time and grabbed the second position in the global market. Standing third, Samsung’s overall global shipments decreased by 15% YoY and 21% QoQ.
Counterpoint’s research analyst Woojin Son commented, “The global smartwatch market, which had been experiencing steep growth for several years, had 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 smart band market.”
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It defined the HLOS smartwatch as any electronic watch running a high-level OS, such as Watch OS (Apple) or Wear OS (Samsung), with the ability to install third-party apps. While basic smartwatch is any electronic watch running a lighter version of an OS, with no ability to install third-party apps.
