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.

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.

Follow Counterpoint Research

press(at)counterpointresearch.com

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

Receive quarterly updates in your email

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%

DOWNLOAD THIS REPORT:

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.

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.

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

Global Smartwatch Market Analysis, Q1 2024

PDF File

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.

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.

Background

Follow Counterpoint Research

press(at)counterpointresearch.com

OnePlus Watch 2: Big Upgrades, Competitive Pricing

OnePlus’ Watch 2 is a substantial upgrade with a bigger and brighter display, dual-band GPS, bigger battery, and increased internal storage among others.
However, the primary upgrade is its ability to run both Google’s WearOS 4 and Real-Time OS (RTOS) without sacrificing the battery life.
Retailing at $300, the OnePlus Watch 2 is priced lower than its competing WearOS offerings from Samsung and Google.

Three years after launching the OnePlus Watch, the company announced a new smartwatch – OnePlus Watch 2 – at MWC 2024 in Barcelona. The latest model is a substantial upgrade with a bigger and brighter display, dual-band GPS, bigger battery, and increased internal storage among others. However, the primary upgrade is its ability to run both Google’s WearOS 4 and Real-Time OS (RTOS) without sacrificing the battery life.

While most High-Level OS (HLOS) smartwatches offer a battery life of a day or two, the OnePlus Watch 2 can last for 100 hours on a single charge in smart mode, and even 12 days in power-saving mode, alleviating concerns over daily charging.

Google has made fundamental changes to the WearOS 4 with a hybrid interface, which allows OnePlus to cherry-pick the best of both OSs. The smartwatch can seamlessly switch between RTOS and HLOS depending on the active task. Tasks like running WearOS apps or third-party apps will invoke WearOS.

Other features like continuous health tracking and smartphone notification mirroring would be taken care of by the power-efficient RTOS. This means RTOS will be constantly active, whereas the HLOS will only run when required. We can expect to see this hybrid version of WearOS 4 in upcoming smartwatches, paving the way for further adoption of Google’s smartwatch OS and maintaining share against Apple’s Watch OS.

OnePlus’ dual-chipset approach facilitates the switch between RTOS and HLOS, powered by the BES2700 microcontroller unit and Qualcomm’s Snapdragon W5 application processor respectively. The Snapdragon processor shuts down completely when in power-saving mode.

With Fossil’s exit from the smartwatch market and Samsung’s Galaxy watches running on its Exynos processors, Qualcomm can maintain or even grow its presence across the smartwatch space with the OnePlus’ Watch 2 owing to its wider presence across the globe compared to the Pixel Watch 2.

Retailing at $300, the OnePlus Watch 2 is priced lower than its competing WearOS offerings from Samsung and Google and would likely appeal to users entering the WearOS ecosystem or OnePlus users looking for enhanced integration with their smartphones. Older-generation Galaxy Watches retailing at lower prices would also compete with the smartwatch in emerging markets like India. Like its peers, the smartwatch is incompatible with iOS and Android Go-powered smartphones.

While the OnePlus Watch 2 has implemented commendable upgrades, we expect to see further advancements like cellular connectivity, fall detection and SOS in its next update. FDA approval, like its peers, would also prove to be a boost in showcasing its capabilities.

With major smartphone OEMs expanding their foray into the health-tracking market, OnePlus could also bring more devices like smart scales and smart rings in the coming years to remain competitive.

OnePlus had less than 1% market share in the global smartwatch market in 2023, which could grow owing to this new upgraded iteration.

India Smartwatch Market Sees Record Shipments in 2023 With 50% YoY Growth

With a 30% share, Fire-Boltt took the top spot in 2023, driven by the widest portfolio among all OEMs.
Noise and boAt captured second and third spots with 25% and 17% shares respectively.
The top five brands’ share was the highest ever at 81%, indicating a growing but consolidating market.
Fastrack and Boult entered the top five for the first time.
54% market was under the retail price band of INR 2,000, which registered over 3x growth.

New Delhi, Beijing, Boston, Buenos Aires, Hong Kong, London, San Diego, Seoul – February 7, 2024

India’s smartwatch shipments grew 50% YoY in 2023, according to the latest research from Counterpoint’s IoT Service. This growth was driven by the rising penetration of smartwatches, proliferation of low-cost devices to target first-time users, and enhanced efforts by Indian brands through extensive marketing and distribution, promotions and local manufacturing. In addition, there is growing awareness and interest among customers to track their health vitals, utilize the device as a style statement, or leverage it for gifting purposes.

Commenting on the market dynamics, Research Analyst Harshit Rastogi said, “The market saw over 125 active smartwatch brands in 2023 even as it started moving towards consolidation. The combined share of the top five brands reached the highest ever at 81%. In addition, growth of emerging players like Fastrack, Boult and BeatXP led to further consolidation of the market. The product portfolio of the top players expanded quite a lot compared to 2022 to cater to different customer segments. Moreover, the market is now further skewed towards the lower price bands with 54% of the shipments in 2023 coming under the INR 2,000 retail price band, up from 26% in 2022.”

Commenting on the outlook, Senior Research Analyst Anshika Jain said, “While the market continues to register high growth rates, we are seeing some stabilisation, signaling wider adoption. The quarterly growth rates have come down from triple to double digits. We expect the market to grow 23% YoY in 2024. With the introduction of new features like cellular connectivity, high-level OS (HLOS) and better displays, the market is likely to sustain growth. We are now observing that OEMs are tapping into new emerging markets like Southeast Asia and the Middle East and foraying into other wearable categories like smart rings to accentuate their presence in the market.”

Market Summary

Fire-Boltt led the market with a 30% share. The brand maintained its focus on offering a wide SKU portfolio and a strong offline presence.
Noise (along with sub-brand Alt) captured the second spot with a 26% market share. The Noise Colorfit Icon 2 and Colorfit Icon Buzz were the best-selling smartwatches in 2023. The brand expanded its retail presence in 2023 and also expanded its portfolio in the kids smartwatch category.
boAt (with sub-brands TAGG and Defy) maintained its third spot in the market with a 17% share and 40% YoY growth. The brand sported its widest portfolio in 2023 and also introduced its Crest+ OS. Besides, it launched limited-edition smartwatches for the Cricket World Cup in 2023.
Fastrack registered the highest shipment growth among major OEMs to move to the fourth spot with a 5.4% market share. With existing brand value and wide offline presence, it has expanded rapidly.
Boult captured the fifth spot with a 3.8% market share. It had the lowest ASP among the top five OEMs.
Samsung declined by 3% YoY in 2023 but registered 17% YoY growth in Q4 2023. The Galaxy Watch 4 continued to be the brand’s best-selling model owing to its promotional pricing, making it the best-selling WearOS smartwatch in India.
Apple’s shipments declined by 57% YoY in 2023 owing to longer replacement cycles and higher ASP coupled with iPhone-only compatibility. The brand maintained its lead in the shrinking INR 20,000 and above retail price band. With increased iPhone sales in India in 2023, we can expect gradual growth in Apple Watch shipments in 2024.

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.

Follow Counterpoint Research

press(at)counterpointresearch.com

Global Smartwatch Market Rebounds; Huawei and Fire-Boltt Hit New Peaks

The global smartwatch market rebounded with a 9% YoY rise in Q3 2023 shipments, continuing the upward trend from the previous quarter.
Growth was propelled by strong performances in the Indian market, particularly from Fire-Boltt, and Huawei’s significant surge in China.
Outside India, the rise in high-specification HLOS smartwatches, driven by new Apple, Huawei, and Samsung releases, dominated the market.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – December 01, 2023

Global smartwatch shipments increased 9% YoY in Q3 2023, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. After experiencing a slowdown earlier this year, the smartwatch market regained momentum in Q2 2023 and continued the positive trend in Q3 as well. The primary drivers of this growth were the sustained strong performance of the Indian market led by Fire-Boltt, as well as Huawei’s tremendous rebound in China.

Research Analyst Woojin Son said, “There is significant value in examining the growth drivers of the global smartwatch market in Q3 2023. Amid a global economic slowdown, most consumer device markets like smartphones are still experiencing stagnation compared to a year ago. In contrast, the smartwatch market has recorded YoY growth for two consecutive quarters in both premium and budget segments. Notably, High-level Operating System (HLOS)* smartwatches, typically featuring higher specification and price, have grown largely driven by Huawei in Q3 2023 as the company posted its highest quarterly performance ever. Most of this surge occurred in the Chinese domestic market, coupled with the launch of new Huawei 5G smartphones.”

High-level Operating System (HLOS)* Smartwatch Market Share, Q3 2022 vs Q3 2023

Source: Counterpoint Global Smartwatch Model Shipment and Revenue Tracker, Q3 2023

Son added, “Meanwhile, the Indian market, which has been powerfully leading the Basic* smartwatch sector, maintained robust growth in the quarter. The country contributed to 35% of total global shipments, securing its position as the leader in the global market for the third consecutive quarter.”

Market Summary

Apple delivered its best-ever Q3 performance, with a 7% YoY increase in shipments. This achievement is particularly noteworthy given that the latest Apple Watch, a key product in their lineup, was released slightly later than the previous year. The strong shipments of the 2^nd-generation SE model significantly contributed to the growth of the industry leader.
Huawei witnessed an impressive 56% YoY increase in overall shipments for the quarter, with HLOS smartwatches seeing a remarkable 122% surge. Its Watch 4 and 4 Pro series, released in Q2 2023, and the Watch GT 4, released in Q3 2023, have achieved good popularity. The increase in Huawei’s shipments was due to the return of its smartphones and the bundled sales model induced by various sales channels.
Samsung experienced a 19% YoY decline in shipments. However, the new products released in August exhibited only a 3% drop compared to the previous ones. In essence, the decrease in Samsung smartwatch shipments this quarter appears to be primarily attributed to a sharper decline of legacy models. Meanwhile, the proportion of the Galaxy Watch 6 Classic significantly increased compared to last year’s 5 Pro, contributing to the rise in the ASP of the brand.
Fire-Boltt reclaimed its leadership position in India after recording its all-time highest quarterly shipments. All the three major Indian brands — Fire-Boltt, Noise and boAt — are experiencing a slower growth rate than before. However, this is interpreted not as a sign of sluggishness, but rather as an indication of entering a phase of stabilization.

*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

Will the Upgraded Apple Watch Series 9 and Watch Ultra 2 turn around Apple’s Smartwatch Slump?

Apple announced the anticipated Apple Watch Series 9 and Watch Ultra 2 on September 12.
Both watches will come with Apple’s new S9 SiP, powering several new features.
The launch comes amid a slump in Apple Watch shipments over the last three quarters.
While new features and hardware make the devices a notable upgrade over their predecessors, macroeconomic conditions may undermine the success of these devices.

Apple announced two new Watches – the Apple Watch Series 9 and the Watch Ultra 2 – at its launch event on Tuesday, September 12. The two devices feature several key updates over their predecessors that, on their own, are impressive. However, amid a slump in Apple Watch shipments, will the upgrades be enough to get buying consumers to the store?

Apple’s S9 SiP Brings New Features and Functionality

Central among the upgrades for both the Apple Watch S9 and the Apple Watch Ultra 2 is the S9 SiP – the first new processor in an Apple Watch since the 2020 Apple Watch S6 – which is a big deal. The new S9 SiP features over 60% more transistors, giving a 30% speed boost to its GPU. The chip also features a quad-core neural engine that is twice as fast as that on the Apple Watch Series 8, enabling improved on-device machine learning and AI functionality. Additionally, the S9 SiP features improved power efficiency, helping the Apple Watch S9 and Apple Watch Ultra 2 achieve a battery life of 18 hours and 36 hours, respectively.

The upgraded performance of the S9 SiP enables several new features on the Apple Watch Series 9 and Apple Watch Ultra 2. Notably, Siri will now operate on-device, making it faster and more reactive to users’ needs. The improved neural engine also makes dictation up to 25% more accurate, which should reduce the frustration users have when Siri misunderstands their requests. Users will also now be able to ask Siri to log health information or to reply to them with key health metrics. This should be helpful for when users are in the middle of a workout and are unable to look at their watch faces.

Apple Watch Series 9 from Apple’s Announcement

The updated neural engine also powers one of the event’s biggest Apple Watch announcements – the new double-tap gesture. Users can now double-tap their forefinger with their thumb on their watch-wearing hand to accept or decline calls, start and stop music, snooze alarms, and more. This feature will be very convenient for users whose other hand is occupied with another task. The neural engine processes data from the watch’s gyroscope, accelerometer, and heart-rate sensor to bring this feature to life. It’s also worth noting that the double-tap gesture is used for the Apple Vision Pro. It seems Apple is slowly introducing its consumers to the vocabulary of gestures that will drive its spatial computing devices.

Apple Watch Ultra 2 from Apple’s Announcement

Brighter Displays

Another upgrade to the Apple Watch Series 9 and Watch Ultra 2 was in their display technology. While the previous Apple Watch Series 8 and Watch Ultra featured displays of 1,000 nits and 2,000 nits of brightness at their brightest level. The Apple Watch Series 9 and Watch Ultra 2 feature up to 2,000 nits of brightness and 3,000 nits of brightness, respectively. This will make reading the display in bright outdoor settings much easier, which should be especially attractive to outdoors enthusiasts as well as athletes.

Sustainability Engineered into the Apple Watch S9 and Ultra 2

Apple engineered sustainability into the DNA of its new Apple Watches. From the materials used in the devices to shipping methods, Apple made a serious effort to reduce its carbon footprint. In fact, when paired with specific bands, the Apple Watch S9 and Ultra 2 are carbon neutral. Apple also announced that with recent measures, last year’s Apple Watch SE 2 is now carbon neutral with specific bands, making Apple’s entire lineup of latest watches carbon neutral. This sets a high bar for competitors who will feel the pressure to implement similar measures.

To achieve this feat, Apple moved to replace all cobalt in its Apple Watch batteries with recycled cobalt and moved to use 95% recycled materials for the casing of the Apple Watch Ultra 2. Additionally, Apple is shipping a higher number of units via ocean rather than air, which significantly lowers carbon emissions.

Pricing and Availability

Despite the upgraded chip, pricing for the new Apple Watch S9 matches that of its predecessor, at $399 for the 41mm version and $429 for the 45mm version. The price for the cellular versions each cost $100 more. The Apple Watch Ultra 2 maintains the same price as its predecessor at $799. Consumers can trade-in their current smartwatch for up to $380 off through the Apple website.

*This section of the blog will be updated as major carriers and retailers announce their promotions.

Will the Apple Watch Series 9 and Watch Ultra 2 end the company’s Watch slump?

Apple’s smartwatch shipments have been in a slump. Since 2022, record levels of inflation caused consumers in North America and Western Europe to hold off on non-essential purchases, including smartwatches. This hurt Apple Watch sales, which were down 10% in Q2 2023 with YoY declines for three straight quarters. Due to this, Apple has lost share in the global smartwatch market. Although macroeconomic conditions continue to impact consumers as they spend more on things like rent, mortgages, loan repayments, the updated chip in the Apple Watch S9 and Apple Watch Ultra 2 gives consumers a legitimate reason to upgrade from their Apple Watch S7 or earlier device. However, despite the upgraded hardware and new features, consumers’ budgets may be too strapped to make the upgrade. Therefore, promotions may play the deciding role in the success of Apple’s new devices.

China Smartwatch Shipments Rise 5% YoY in Q2 2023

China’s smartwatch shipments rose 5% YoY in Q2 2023 to mark the market’s gradual recovery.
Huawei remained the best-selling brand with a 39% market share.
imoo (BBK) surpassed Apple to rank second in market share.
The ≥$500 price band’s share increased significantly, while the ≤$50 price band’s share decreased significantly.

Beijing, New Delhi, Seoul, Hong Kong, London, Buenos Aires, San Diego – August 30, 2023

Marking a gradual recovery in Q2 2023, China’s smartwatch shipments increased 5% YoY, according to Counterpoint Research’s latest Global Smartwatch Model Tracker.

Senior Analyst Shenghao Bai said, “The YoY rise in Q2 came on a low base of the same period last year. At the same time, the holiday travel in Q2 and the 618 e-commerce festival also boosted consumer demand for smartwatches. The market has recovered slightly better than we had predicted.”

Source: Counterpoint’s Global Smartwatch Model Tracker

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

Market summary

Huawei recorded a 58% YoY growth, maintaining its good reputation among consumers. The newly launched Huawei Watch 4 and Huawei Watch 4 Pro series models were popular with consumers, while old models such as the Huawei Watch GT 3 series still sold well. Another newly launched model, the Huawei Watch Ultimate, contributed to the brand’s performance in the ultra-premium segment.

imoo (BBK) benefited from the demand in the first full back-to-school quarter after the pandemic lockdown was lifted in China. Its multiple offline retail stores also contributed to the brand’s growth.

Apple recorded a 15% YoY decrease in Q2 2023. Although the Apple Watch Series 8 was the best-selling model family in China during the quarter, its shipments decreased 25% compared to that of its predecessor Apple Watch Series 7 in Q2 2022. With new product launches expected in Q3 2023, Apple is likely to increase its market share in the quarter.

Xiaomi recorded a decrease of 15% YoY but an increase of 7% QoQ. The brand still took the biggest share in the ≤$50 segment. Waning consumer interest in entry-level products contributed to the decline in Xiaomi’s market share.

OPPO achieved a 28% YoY increase in Q2 2023. Promotions during the 618 e-commerce festival helped the OPPO Watch 3 and OPPO Watch 3 Pro’s sales.

Source: Counterpoint’s Global Smartwatch Model Tracker

Note: The price refers to the wholesale price

In terms of wholesale price bands, the ≤$50 band’s share significantly dropped compared to the same period last year. This price band’s share has been recording YoY drops in the past several quarters. On the other hand, the ≥$500 segment’s share rose significantly to 11% from almost negligible in Q2 2022.

Research Analyst Alicia Gong said, “The entry-level products with simple features are not as popular with consumers as they once were. A growing number of consumers are gravitating toward smarter devices with more health monitoring, sports tracking and guidance functions. Since the Apple Watch Ultra’s release last year, the share of premium segments has been growing. The promotions during the 618 e-commerce festival also contributed to these segments’ growth.”

Background

Top

Coverage: Smartwatch 360

Samsung’s Reinforced Galaxy Watch 7 Lineup to Boost Revenue Growth in 2024

Table 1: Specifications Comparison of Samsung’s New Smartwatch Lineup

Related Posts

India’s Smartwatch Market Stagnates in Q1 2024 for the First Time Ever

Related Posts

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

Global Smartwatch Shipments Market Share Quarterly

Highlights:

Global Smartwatch Market Analysis, Q1 2024

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

Global Semiconductor Foundry Market Share: Quarterly

Q1 2024 Global Smartphone Sales, Top 10 Best Sellers

Global Smartphone AP-SoC Market Share: Quarterly

Global Electric Vehicle Market Share, Q2 2022 – Q1 2024

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

US Smartphone Market Share: Quarterly

Global Smartphone Sales Share by Operating System

Global Smartphone Market Share: Quarterly

China Smartphone Market Share: Quarterly

India Smartphone Market Share: Quarterly

Top 5 Smartphone Models Share For 8 Countries

Counterpoint Macro Index

Global Smartphone Shipments Share – Last Eight Years of Winners & Losers

Global Smartphone Shipments 2011 – 2023

Wear OS, HarmonyOS to Register Strong Growth in Global Smartwatch Market in 2024

Related Posts

OnePlus Watch 2: Big Upgrades, Competitive Pricing

Related Posts

India Smartwatch Market Sees Record Shipments in 2023 With 50% YoY Growth

Related Posts

Will the Upgraded Apple Watch Series 9 and Watch Ultra 2 turn around Apple’s Smartwatch Slump?

China Smartwatch Shipments Rise 5% YoY in Q2 2023

Coverage

Insights

Social media

Contact us

Top

Table 1: Specifications Comparison of Samsung’s New Smartwatch Lineup

Related Posts

Related Posts

Global Smartwatch Shipments Market Share Quarterly

Highlights:

Global Smartwatch Market Analysis, Q1 2024

Related Posts

Related Posts

Related Posts

Coverage

Insights

Social media

Contact us

Term of Use and Privacy Policy