Despite strong demand for Xiaomi and Samsung products, wearable band shipments rose only 3% YoY in 3Q24 to 52.9 million units, while smartwatches dominate market value.
Global wearable band shipments grew by only 3% in Q3 2024, reaching a total of 52.9 million units, according to Canalys’ latest report. This marks the second consecutive quarter of growth for the sector as shipments across all three device categories—basic bands, basic watches, and smartwatches—showed year-on-year (YoY) increases.
Notably, the basic band category experienced a significant rebound, growing by 7% YoY to 10.4 million units. This growth was largely driven by new product launches, such as Xiaomi’s Mi Band 9 and Samsung’s Galaxy Fit3.
The basic watch segment saw a more modest YoY growth of 3%, with shipments totalling 23.9 million units, partly due to slower demand in India. Smartwatch shipments saw a slight increase of 0.1%, reaching 18.5 million units, with Huawei and Samsung’s growth offsetting Apple’s decline.
The breakdown of global wearable band shipments in 3Q24 shows that Apple and Xiaomi tied for the highest share, each with 8.5 million units shipped, maintaining a 16.1% market share. Xiaomi’s YoY growth stood out, increasing by 37.3%.
Huawei followed closely with 7.1 million units, capturing 13.5% of the market, marking a 38.5% increase from the previous year. Samsung shipped 4.8 million units, accounting for 9.1% of the market, representing a 24.3% YoY growth. Noise, on the other hand, saw a 29.6% drop in shipments, with only 2.5 million units, down from 3.5 million in 3Q23. Other vendors combined for 21.4 million units, a 10% decrease from the previous year. The overall market growth rate was 2.9% YoY.
Among all the brands, Xiaomi posted its strongest wearable band shipment since Q4 2020, driven by strong demand for its Mi Band 9 and Redmi Watch 5 series. The company expanded its offerings with different versions for its bands and watches, including Pro, NFC, and Active variants for the Mi Band, as well as Lite and Active versions for the Redmi Watch 5 series.
Xiaomi’s expanded product range helped it reach a wider customer base, but its average selling price (ASP) dropped 9% YoY, hitting its lowest since Q1 2021. While the premium Watch S series saw a 70% YoY increase, balancing entry-level products with premium branding remains a key challenge.
Region-wise, the wearable band market displayed differences, with emerging markets showing strong growth potential while North America struggled.
Cynthia Chen, Research Manager at Canalys, pointed out that regions like Latin America and EMEA benefited from strong sales of Xiaomi’s and Samsung’s products, such as the Galaxy Fit3, which helped drive growth in these areas.
“Conversely, North America faces declining demand, hindered by reduced demand for Apple’s legacy models and Fitbit’s shrinking share, as mature markets lack compelling features to drive upgrades, leading to continued sluggish performance,” she noted.
In addition to regional factors, Chen also highlighted a shift in the basic wearable band market, driven by ‘AMOLED’ displays and advanced tracking features, which attract consumers in emerging markets seeking affordable premium functionality.
While this boosts expectations, it intensifies competition and pressures profit margins. Smartwatches, though only 35% of shipments, contribute 74% of the market’s value, urging vendors to invest in advanced technology to stay competitive.
