Beijing, New Delhi, London, San Diego, Buenos Aires, Hong Kong, Seoul – March 23, 2023
China’s smartwatch shipments fell 8.8% YoY in 2022, mainly due to the COVID-zero policy’s impact on demand, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. The year saw the country’s smartwatch market size shrinking to pre-COVID levels, with only Q1 2022 registering a quarterly YoY growth in shipments. The global smartwatch shipments grew 9% YoY during the same period.
Huawei and Apple dominated the China smartwatch market in 2022, with their combined share rising to almost 50%. Only OPPO (105% YoY), Apple (4% YoY) and Huawei (9% YoY) grew YoY among key brands.
Source: Counterpoint Global Smartwatch Model Shipments & Revenue Tracker
Note: Figures may not add up to 100% due to rounding
Senior Analyst Shenghao Bai said, “China’s strict anti-COVID policies impacted consumer sentiment in 2022. Curbs on movement and remote education regulations further impacted the demand for kids’ smartwatches in the country, the world’s biggest kids’ smartwatch market, and their shipments fell 25% YoY. From key brands’ perspective, only Huawei, Apple and OPPO achieved YoY growth, driven by the success of their new launches.”
The biggest standout feature of the year was the high-to-premium segments’ (>$200) share rise. Shipments in the $301-$400 segment grew 31% YoY, while shipments in the ≥$401 segment grew a whopping 1138% YoY. The ≤$50 segment’s share dropped to 22%, with a 28% YoY decrease in shipments compared to the previous year.
Source: Counterpoint Global Smartwatch Model Shipments & Revenue Tracker
Senior Analyst Ivan Lam said, “The demand for high-end and premium segments remained relatively strong in 2022, despite the decline in consumer sentiment and global macro headwinds. This shift to the high-end segment is similar to the shift witnessed in the smartphone market in 2022. High-end smartwatch consumers usually have higher demands for health detection, communication and system features. Such consumers are also more loyal to the brand. In recent years, Apple and Huawei’s marketing efforts have led high-end consumers to view their smartwatches as professional-grade devices with advanced sports and health monitoring capabilities. These watches are also appreciated for their sleek and stylish designs, making them suitable for everyday wear.”
Research Associate Alicia Gong added, “As Chinese consumers’ expectations for smartwatch features and experiences continue to rise, entry-level models’ (≤$50) share is falling gradually.”
Brands summary
Outlook
China’s smartwatch market is expected to rebound due to an active volume push by OEMs such as Huawei, Xiaomi, HONOR and OPPO against the backdrop of post-COVID reopening in 2023. The market’s ASP (average selling price) is also expected to rise due to the continuous demand for more professional models.
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.
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