• Luxshare was the top outsourced smartwatch manufacturer in H2 2022 as it undertook around 40% of Apple Watch production.
• In Tier-2, Huaqin ranked first as it produced smartwatches from a variety of brands. Meanwhile, LINWEAR, I DO and Yawell benefitted from the stellar growth of Indian brands.
• The share of outsourced manufacturing shipments is expected to continue to grow as the global smartwatch market expands.

Beijing, New Delhi, Hong Kong, Taipei, Seoul, San Diego, Buenos Aires, London – May. 2023

Global smartwatch outsourced manufactured shipments increased 15% YoY and accounted for 69% of overall global shipments in H2 2022, according to Counterpoint Research’s latest Global Smartwatch Outsourced Manufacturing Tracker and Report.

Senior Research Analyst Shenghao Bai said, “The YoY increase in outsourced smartwatch shipments in H2 2022 was driven by the strong performance of Indian brands Noise, Fire-Boltt and boAt. The outsourced manufacturers who offered production services for these brands benefited in H2 2022.”

Bai added, “As global smartwatch shipments continue to grow, the contribution of outsourced manufacturing sources has also increased. 69% of global smartwatches were produced by ODM/EMS in H2 2022, compared with 63% in H2 2021.”

Luxshare, Foxconn and COMPAL were the top three outsourced manufacturers in H2 2022. The three players were responsible for half of the global smartwatch outsourced shipments during the period. Luxshare ranked first in H2 2022 as it undertook around 40% of Apple Watch orders. Among Tier-2 players, Huaqin, LINWEAR, I DO and Yawell displayed strong performances in their smartwatch production businesses.

Source: Counterpoint Global Smartwatch Outsourced Manufacturing Tracker, H2 2022

Commenting on the performance of the leading players, Senior Research Analyst Ivan Lam said, “The top three manufacturers mainly benefited from Apple Watch orders in H2 2022. Luxshare's smartwatch shipments were flat compared with that in H2 2021. Foxconn’s shipments in H2 2022 rose due to the orders from Apple, helping the company rank second in terms of shipments. Meanwhile, COMPAL reduced orders from Apple in pursuit of a higher profit margin.”

Lam further added, “In Tier 2, Huaqin’s shipments increased slightly following the company’s partnership with Samsung. Huaqin also continued its cooperation with Huawei, HONOR and OPPO. Manufacturers like LINWEAR, I DO and Yawell increased their shipments by cooperating with multiple brands, especially those from India which mainly focus on the <$50 segment. Yawell received a large share of orders from Noise and Fire-Boltt in Q3 2022.”

ODMs and EMSs have started playing more important roles in the smartwatch industrial chain as the global smartwatch market continues to grow. The share of shipments from outsourced manufacturers is expected to rise to about 70% in 2023 from 68% in 2022 all year. Commenting on the trend, Bai said, “The competition is getting tighter as well. There are increasing requirements for OEMs to be mindful of cost, deliverability and reliability.”

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 

Shenghao Bai

Ivan Lam

Counterpoint Research