Market analysis

• Apple grew 48% YoY thanks to strong sales of its newly released Apple Watch 8 series. Released in early September, the new series accounted for about 56% of the overall shipments. Apple accounted for about half of the market among HLOS smartwatches in Q3 2022. However, this was a slight decrease from the 54% share in Q2 2022 due to the slump in North America and Europe, which are major markets.
• Samsung increased its shipments by 62% QoQ with launching new Galaxy Watch 5 series, while its market share of the HLOS segment increased by 5% points QoQ. However, Samsung’s shipments only grew 6% YoY as it lost ground in India, falling below 3% share there. In the global market, Samsung was still in second place but with a decreased market share (down by 2.6% points YoY), narrowing the gap with the third-placed Noise.
• Noise grew 218% YoY to regain the top spot in the Indian market. It ranked third in the global market, followed by Apple and Samsung. In the case of the basic smartwatch market, Noise ranked first in India, but the gap with Fire-Boltt was less than 1% due to fierce competition in that market.
• Fire-Boltt showed a flat market share compared to the previous quarter but fell behind Noise to retreat to second place in India. But thanks to the Indian market’s rapid growth, Fire-Boltt was able to maintain its fourth place in the global market. Fire-Boltt is active mostly in the Indian market, so the growth of the brand shows how much impact the Indian market had this quarter.
• Although Huawei grew 65% YoY, it recorded zero shipments in India for the first time since 2018. It ranked fifth in the global market, the same as the previous year.
• Like Fire-Boltt and Noise, the sixth-placed boAt targets the entry-level smartwatch market. boAt crossed the 2-million mark in shipments during the quarter.
• Garmin’s shipments were flat from the previous year. But in terms of revenue, the brand grew 11%. This is because its ASP of about $365 was even higher than Apple’s ASP.

 

Smartwatch Shipment Share by Region, Q3 2022 vs Q3 2021

Smartwatch Shipment Share by Region, Q3 2022 vs Q3 2021

Source: Counterpoint Global Smartwatch Model Tracker, Q3 2022

  In terms of regions, India occupied the top position for the first time. Senior Analyst Anshika Jain said, “India’s smartwatch market grew 167% YoY in Q3 2022 to become the biggest market in the world. The main factor behind the record quarter was India’s festive season. Indian brands expanding their product portfolios at affordable price points and emphasis on local manufacturing also contributed to the growth. Bluetooth-calling emerged as an important feature, contributing a 58% share in total shipments, the highest ever share to date. Consumers are also preferring bigger display sizes, which is evident from the fact that over half of the total shipments in Q3 came from the 1.5”-1.69” display size.” In the case of North America, which remained the largest market from Q4 2020 to Q2 2022, the shipments increased 21% YoY. But India grew so much that it was pushed to second place globally. Due to the continued “zero-COVID” policy and the subsequent economic downturn, China fell 6% YoY. Its market size decreased for the fourth consecutive quarter.   *Smartwatch type definition

• 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 the inability 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 [email protected]