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Global Smartwatch Shipments See YoY Growth After Two Quarters

In Q2 2023, global smartwatch shipments increased 11% YoY after declining for two successive quarters.
For the first time in two years, Huawei took the second spot, fueled by a 58% YoY surge in domestic shipments.
India’s market recorded a remarkable 70% YoY growth, whereas North America saw a 9% decline.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – August 29, 2023

Global smartwatch shipments increased 11% YoY in Q2 2023 after declining in both Q4 2022 and Q1 2023, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker. India’s shipments soared by 70% YoY, serving as the primary driver for the global market’s rebound. China’s market also recorded a modest increase. Besides, a shift in the competitive landscape was evident as Huawei ascended to the second position in terms of global market share.

Research Analyst Woojin Son said, “Huawei recorded impressive growth in Q2 2023, securing the second position in quarterly shipments for the first time in two years. The leading Chinese brand’s growth stagnated for some time due to technological sanctions and a slowdown in its domestic market. Although the Chinese market’s recovery remained lukewarm, Huawei aggressively pushed new flagship products such as the Watch 4 series into the market in Q2, achieving its highest quarterly shipments after 2020. Huawei seems to be determined to bounce back in the market. It remains to be seen whether this momentum can be effectively expanded to other sectors, such as smartphones.”

Global Top 3 Smartwatch Brands’ Shipment Share, Q2 2023 vs Q2 2022

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q2 2023

Market summary

Apple saw a 10% YoY decline in its Q2 2023 shipments. This decline pushed its Q2 shipments to below 8 million units for the first time in three years. Consequently, Apple’s market share fell to 22% from 27% in Q2 2022.
Huawei made big strides by increasing its domestic market share to 39% following a surge of 58% in shipments. This achievement propelled the brand to the second spot in the global smartwatch market share rankings. Another significant change was observed in the premium segment, especially in the >$500 band. Huawei’s products in the >$500 band in China expanded their share in the band to 52% in Q2 2023, a remarkable leap from the brand’s near-absence from the band in the same quarter of 2022.
Indian brands Noise and Fire-Boltt emerged as major contenders, boasting 86% and 70% YoY growth, respectively. Within Noise’s offerings, products priced under $50 constituted a significant 98% of total shipments. Noise’s Colorfit Icon series managed to carve out a substantial 28% share of the total shipments. Fire-Boltt also made strides in expanding its market share by capitalizing on cost-effective smartwatches.
Samsung witnessed a 19% YoY decline in Q2 2023. The brand managed to boost shipments in the Chinese and Indian markets. Samsung’s performance in North America and Europe, its pivotal markets, recorded 24% and 13% YoY declines, respectively.

Smartwatch Shipment Share by Region, Q2 2023 vs Q2 2022

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q2 2023

In terms of regional shipment shares, India’s market stood at 34%, a 12% points surge compared to the year-ago period. In Q2 2023, 88% of India’s smartwatch shipments were dominated by products priced <$50. Leading the charge in this segment were Noise, Fire-Boltt and boAt, collectively contributing to 72% of India’s total shipments.

The Chinese market’s share declined due to the swift expansion of India’s market. However, China’s shipments grew 5% from Q2 2022. In terms of revenue, the share of products priced >$500 surged to around 34% in China.

In North America, there was an 9% YoY reduction in shipments in Q2 2023. However, the revenue saw a rise of around 3% due to the sustained popularity of high-end premium products. Nevertheless, North America’s share in global smartwatch revenues declined, compared to both Q2 2022 and Q2 2021.

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

press(at)counterpointresearch.com

China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters

In Q1 2023, China’s smartwatch shipments declined both YoY and QoQ.
HLOS* smartwatches’ share increased when compared to that in 2022.
Despite its shipments falling 15% YoY, Huawei ranked first in Q1 with more than a quarter of the market share.
Apple’s Watch Series 8 was the best-selling model in Q1 even as the brand’s shipments fell 27% YoY.

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

China’s smartwatch market did not fully recover in the first full quarter after the country’s reopening. According to Counterpoint Research’s latest Global Smartwatch Model Tracker, China’s smartwatch shipments declined 28% YoY and 16% QoQ in Q1 2023 to reach their lowest level in 12 quarters.

Senior Analyst Shenghao Bai said, “Although the Spring Festival can boost consumption generally, the demand for smartwatches was still weak in Q1 2023. This was similar to what we saw in China’s smartphone shipments. The market needs more time to recover.”

The top three brands were Huawei, Apple and BBK (imoo). They accounted for nearly 60% of China’s smartwatch market in Q1 2023. Among the types of smartwatches, the HLOS* smartwatch’s shipments saw the smallest YoY drop even as its share increased to 45% from 39% in Q1 2022. Meanwhile, China’s ‘kids smartwatch’ shipments decreased 31% YoY. The country is the world’s biggest kids smartwatch market.

Chart-China-Smartwatch-Q1-2023

Source: Counterpoint’s Global Smartwatch Model Tracker

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

Commenting on the market trends, Research Associate Alicia Gong said, “Despite the overall demand for smartwatches dropping in Q1, the demand share for HLOS smartwatches rose. These are advanced watches offering users more customization and independence. Though BBK (imoo) still dominated the kids smartwatch market with a 35% share, its shipments of the watch remained flat YoY amid a shrinking kids segment.”

Market summary

Huawei was the biggest winner in China’s smartwatch market with a 27% share, thanks to its strategy of having multiple portfolios. Though the brand’s overall shipments dropped 15% YoY, it ranked first in all price bands from $101 to $400. The Huawei Watch GT 3 was the second best-selling model in Q1 2023.

Apple took the second largest share, mainly driven by its Apple Watch Series 8 and Apple Watch SE 2022. The two models were the first and third best-selling models in Q1 2023. However, Apple’s shipments decreased 27% YoY due to shrinking demand. Focusing on HLOS smartwatches helped the brand take an 87% share in the above-$400 segments.

BBK (imoo)’s Q1 shipments were generally flat YoY thanks to the back-to-school season. The brand benefited from its multiple-models strategy. Its Z6A series contributed the most to its shipments.

Xiaomi’s shipments saw a 42% YoY drop but a 31% QoQ increase in Q1 2023. The brand ranked first in the <$50 segment.

OPPO was the only one among the main brands to see its shipments increase both YoY and QoQ. The performance was driven by the OPPO Watch 3 and OPPO Watch 3 Pro. OPPO’s market share increased to 4% in Q1.

Qihoo 360 recorded a 35% YoY drop. It had fewer models on sale compared to Q1 2022.

Amazfit has a variety of models in China but lags behind in having popular models. The brand’s shipments declined 34% YoY in Q1 2023.

*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.

*All the prices mentioned in the article are wholesale prices.

Background

Analyst Contacts

Shenghao Bai

Alicia Gong

Counterpoint Research

India Smartwatch Market’s 121% YoY Growth Restricts Global Decline to 1.5% in Q1 2023

The global smartwatch market continued to contract in Q1 2023 following an 8% YoY decline in Q4 2022.
Fire-Boltt surpassed Samsung for the first time in the global smartwatch market, capturing the second spot.
All regions except India witnessed a YoY decline in shipments in Q1 2023.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – May 25, 2023

Global smartwatch shipments contracted 1.5% YoY in Q1 2023, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. The 121% growth in India’s shipments managed to restrict the decline. This was the second consecutive quarter of a YoY decrease in global shipments, which were hit by the seasonal decline in demand for products from major players like Apple and Samsung, along with consumer sentiment dampened by global financial pressures.

Research Analyst Woojin Son said, “The global smartwatch market, which had been experiencing steep growth for several years, has entered a period of stagnation since the end of last year when it declined 8% YoY in Q4 2022. Amid a global slowdown in demand for tech devices, the smartwatch consumption trend has also undergone a transformation. The market share of high-price and high-performance HLOS smartwatches*, primarily released by Apple and Samsung, decreased from 60% in Q1 2022 to 53% in Q1 2023. On the other hand, the market share of Basic smartwatches* significantly increased from 23% to 34% driven by rapid growth in the Indian market. Although the overall smartwatch shipment volume declined slightly compared to last year, affordable products that offer a certain level of performance generated substantial demand based on their price accessibility. These low-end smartwatches are also absorbing or replacing the existing smartband market.”

Global Top 3 Smartwatch Brands’ Shipment Share, Q1 2023 vs Q1 2022

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q1 2023

Market summary

Apple’s shipment volume fell 20% YoY in Q1 2023. This was the first time in three years that its Q1 shipments fell below 10 million units. As a result, Apple’s market share, which was 32% in Q1 2022, dropped to 26%. This can be attributed to the ongoing macroeconomic crisis, which has led to decreased accessibility to relatively higher-priced Apple Watches. Despite the Apple Watch Series 8’s release about a month ahead of its predecessor, it did not achieve the same level of success as the previous model.
Indian brand Fire-Boltt surpassed Samsung for the first time and reached the second position in the global market. Its shipments increased by approximately three times compared to the previous year and saw a 57% growth compared to the previous quarter. This reflects the rapid growth of the Indian market, just like other local brands such as Noise and boAt.
While Samsung experienced a 15% increase in shipments in its key market North America, it witnessed a decline in shipments in other major markets. As a result, its overall global shipments declined by 15% compared to the previous year and 21% compared to the previous quarter.
Huawei, the most influential Chinese OEM, saw a 14% YoY decline in its shipments in the Chinese market, which is a key market for the company. However, Huawei saw increased shipments in India, LATAM and MEA, limiting its overall decline in global shipments to 9%. Huawei has been employing a strategy of relaunching models previously released for the Chinese market in the international market.

Smartwatch Shipment Share by Region, Q1 2023 vs Q1 2022

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

Source: Counterpoint Global Smartwatch Model Tracker, Q1 2023

In terms of the regional markets, India surpassed North America, reclaiming its position as the top region with a 27% share of global smartwatch shipments. Senior Analyst Anshika Jain said, “India’s smartwatch market grew 121% YoY in Q1 2023 driven by affordability, rising customer demand and availability of a wide variety of options in the budget segment. Around 40% of the total shipments were driven by the <INR 2,000 (<$25) price band, its highest proportion ever. The share of India-based players crossed 90% for the first time as they were quick in terms of upgrading their portfolios and adapting their products to customer needs at a reasonable price point.”

China’s smartwatch market experienced a significant contraction of 28% compared to the previous year, as the country’s economy showed a slower recovery than expected. This decline represents the sharpest contraction among the major regional markets and the lowest quarterly shipments since the outbreak of COVID-19 in Q1 2020.

*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

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press@counterpointresearch.com

Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022

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

China Smartwatch Shipments Down 8.8% YoY in 2022; Huawei, Apple Dominate Market with Almost 50% Share

China’s smartwatch shipments declined 8.8% YoY in 2022, mainly due to the COVID-zero policy’s impact on consumption. The global shipments grew 9.0% YoY during the same period.
Huawei and Apple dominated the China smartwatch market in 2022, raising their combined share to almost 50%.
Growth in the high-to-premium segment (>$200) was driven by increasing consumer demand for premium features like health monitoring and professional sports guidance.
The top three best-selling models were the Huawei Children Watch 4 Pro, BBK Q1A and BBK Z6A.

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

Huawei enjoys a good reputation among Chinese consumers. Driven by price cuts, its Children Watch 4 Pro ranked first in the bestseller list for the market in 2022. The Watch 3 Pro and GT 3 (46mm) were the other two top-three models for Huawei. The brand benefited from its relatively more focus on HLOS smartwatches, with its HLOS smartwatch shipments doubling in 2022 to support Huawei’s 9% YoY growth in 2022.
Good sales of Apple’s Watch Series 7 models, coupled with the newly released Watch Series 8 and Ultra models, helped Apple register 4% YoY shipment growth in China. Continued innovation in health monitoring functions, as well as the perfect data and interaction experience, drove Apple’s growth. Meanwhile, the Ultra has created a new segment of professional smartwatches, which helped Apple dominate the premium segments.
BBK (imoo) recorded a double-digit shipment decline YoY. BBK relies more on offline channels, which were impacted by the strict COVID policy in 2022. Although the brand’s Q1A and Z6A models ranked second and third respectively in the China smartwatch market in 2022, its newly launched Z8 and D3 models failed to overtake previous annual sales leaders Z3 and Z5.
Xiaomi’s smartwatches mainly belong to the <$200 segments. Its annual sales in the China market dropped 18% YoY in 2022 as demand shrank in the $101-$200 and ≤$50 segments.
OPPO saw a 105% YoY gain in 2022, mainly driven by its newly released Watch 3 Series. Its market share also increased to 3%.

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

Analyst Contacts

Shenghao Bai

Ivan Lam

Alicia Gong

Follow Counterpoint Research

press@counterpointresearch.com

Global Smartwatch Shipments Grow 9% YoY in 2022; Price Polarization Seen in Demand

The market showed decent YoY growth in 2022, though it dropped 8% YoY in Q4
Quarterly shipments turned to a YoY decline after seven consecutive quarters of growth.
Shipments in the >$400 price band more than doubled in 2022, while the mid-price range saw a YoY drop.
Indian brands such as Noise and Fire Boltt found spots in the global top 5 sellers’ list thanks to the rapid growth of their domestic market.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – February 22, 2023

The global smartwatch market shipments grew 9% YoY in 2022 due to the strong YoY growth witnessed in the first three quarters of the year, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker. But the shipments fell 8% YoY in Q4 2022 amid inflationary pressures and slow India growth. This was the market’s first negative growth in eight quarters since the pandemic hit the world in 2020.

Global Top-selling Smartwatch Brands’ Shipment Share, 2022 vs 2021

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q4 2022

The most striking feature of the year was price polarization in demand. Shipments in the mid-price range decreased while those in the >$400 and ≤$100 segments increased 104% and 41%, respectively, compared to the previous year.

Research Analyst Woojin Son said, “Apple strongly drove the average selling price (ASP) rise in the global smartwatch market in 2022, especially in the >$400 price band. There are two main reasons for this ASP rise – a diversified Apple smartwatch line-up and a rise in the exchange rate. This year, Apple released its first premium model, Ultra, at a release price of $799 in the US. In addition, as the exchange rate rose, the local price of Apple Watch in various countries changed. The demand for the premium segment remained relatively strong despite the decline in consumer sentiment at the end of 2022.

Son added, “On the other hand, we must be cautious about the low-price band of sub-$100. While this segment expanded in 2022 along with the remarkable growth of India’s market, it showed a large withdrawal in Q4 when compared to Q3.”

Global Smartwatch Shipment Share by Wholesale Price Band, 2022 vs 2021

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q4 2022

Market summary

In 2022, Apple’s global market share decreased by 2.6%p with shipments remaining almost flat year on year. In terms of revenue, however, it grew 15% YoY, accounting for 56% of the global smartwatch market revenue and further widening the gap with No. 2 Samsung.
Samsung’s yearly shipments increased by 12% to account for more than 10% of global smartwatch shipments in 2022. Although sales of the newly released Galaxy Watch 5 series in the year were positive, its revenues only increased by less than 1%, which seems to be largely due to a slight drop in the ASP compared to the previous year.
Huawei‘s market share fell 0.5%p YoY due to the Chinese smartwatch market losing momentum to India in 2022. However, the brand’s revenue increased by 20% thanks to its relative focus on HLOS* smartwatches.
Noise and Fire Boltt, the Indian brands that supported the rapid growth of their home market, showed excellent growth in 2022. The two brands surpassed 5% of the global market share to rank fourth and fifth, respectively. Although the makers failed to beat Huawei as the Indian market’s growth slowed in Q4, they are attracting discussions on whether they will be able to threaten Samsung’s position beyond Huawei next year.
Fitbit and Xiaomi’s rankings fell to 10th and 11th in 2022 from 7th and 8th in the previous year. The strength of Indian brands was also affected, but these two brands failed to defend their share in their main markets like North America (Fitbit) and China (Xiaomi). Their shipments were decreased or flat compared to the previous year.

Smartwatch Shipment Share by Region, 2022 vs 2021

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

Source: Counterpoint Global Smartwatch Model Tracker, Q4 2022

In terms of regions, North America recovered as the largest smartwatch market in Q4 2022, which also allowed it to remain in first place for a full year again. The Apple’s home market showed a significant increase in shipments QoQ, despite the sales of Apple Watches being lower than expected in the fourth quarter. However, North America’s share decreased slightly as India emerged as another core region in 2022.

India’s market more than doubled compared to 2021. It grew steadily until Q3 2022 but fell 36% QoQ in Q4. Senior Analyst Anshika Jain said, “The third quarter of 2022 saw a big rise because most of the brands pushed high inventories into the channel ahead of the festive season. Therefore, we saw a decline in shipments in the fourth quarter.”

In the fourth quarter of 2022, China’s shipments rebounded for the first time in the year as the COVID-zero policy was eased, and both Huawei and Apple are received a positive response with their more diverse products.

*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

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press@counterpointresearch.com

CES 2023: Smartwatches Expand Health Features and Target Kids and Seniors

Citizen, Fossil, eBuyNow, and iTouch all announced new smartwatches at CES, with health and wellness taking center stage
Kids and senior smartwatch market to grow as Xplora enters the US market
Companies continue to wait for new sensors to monitor blood sugar and blood pressure

At the beginning of this month, companies from around the world gathered in Las Vegas to unveil their most exciting pieces of technology at CES 2023. Everything from laptops to cars to VR glasses was on display and our analysts were at the event tracking the latest and greatest launches from tech companies. One area that we paid particular attention to was smartwatches, which saw several big announcements at the event.

Xplora plans entry into US smartwatch market, announces plans for a senior watch

Xplora is already popular throughout Europe, offering a lineup of differentiated kids watches that appeal to children in the 4-11 age group. The company is hoping that its strong performance in Europe can be replicated in the US when it launches in retail channels there later this year. In the US, most brands currently only offer one kids watch, if any at all. Xplora offers the X6Play, which won a Best of Innovation Award at CES, which is more powerful and has more advanced features, and the XGO3, which is less powerful and less expensive. Xplora is likely to benefit from having more advanced devices for kids at the top of its target age range and simple devices for kids at the bottom of the range. Additionally, service plan prices start at only $9.99/month, a full $5/month cheaper than Verizon or T-Mobile when pre-paying for a year of service, which will appeal to price-savvy consumers. Xplora also announced during CES that it was releasing a watch targeted at seniors. While the US does have some senior watch models available, this market remains immature and underpenetrated. Xplora’s expertise in kids watches should help give it a leg-up on the competition and a head start in addressing this underserved market.

Citizen announces two new smartwatches, moves beyond health and wellness tracking

Japanese heritage watch maker Citizen announced two new smartwatches to replace its current lineup. The Citizen CZ Smart Casual and CZ Smart Sport both feature sleek displays and a wide array of changeable bands, but the true innovation comes in the form of new health and wellness features. While most smartwatches today feature things like sleep tracking, heart rate tracking and even blood oxygen content, the CZ Smart Casual and Smart Sport go beyond health and wellness tracking to health and wellness prediction and intervention. The CZ Smart YouQ App uses tests adapted from NASA’s research to create a profile of user awareness and focus throughout the day. Users can use these profiles to glean insights into moments of peak performance and plan their day accordingly. After the first week, the app can also make recommendations to improve focus and awareness during points in the day when the user is predicted to see a drop.

Fossil announces new hybrid smartwatch

Fossil announced a new smartwatch at CES, the Fossil Gen 6 Hybrid Wellness Edition. The major feature of this watch is its E Ink display that shows health and wellness data such as heart rate, blood oxygen content and steps all behind two mechanical arms for analog time-keeping. The E Ink display helps keep power consumption low, with the device’s battery life advertised at two weeks. This is Fossil’s second hybrid smartwatch, and the first to include such in-depth health and wellness features, a clear indication of how health and wellness have become the driving use for smartwatches.

eBuyNow announces four new smartwatches under Motorola name

eBuyNow, the company behind the original Moto Watch, announced at CES that it would launch four new smartwatches under the Motorola name in the coming year. The company focused heavily on the Moto Watch 100, which while not specifically for seniors, is marketed as being the cheapest smartwatch on the market that features fall detection, a key feature for senior watches. In addition to the Moto Watch 100, eBuyNow announced the Moto Watch 70, Moto Watch 150 and Moto Watch 200, all of which are priced below $200.

iTouch announces new smartwatch and fitness tracker in partnership with fitness icon Jillian Michaels

iTouch announced that it would be launching its new iTouch Air 4 in partnership with fitness icon Jillian Michaels. The company says the Air 4 features improvements in the accuracy of its fitness tracking while aiming to help users improve their health and well-being without breaking the bank. The devices are expected to launch in the spring of this year through iTouch’s website as well as retail channels in the US. The device will likely cost users around $100.

There are a few things that the smartwatch announcements at CES can tell us about the direction that the smartwatch market is heading in. First, it is clear that health and wellness are the primary use case of smartwatches in 2023. Brands are expanding their health and wellness offerings to devices that did not previously offer them, improving their health tracking features, and even moving beyond health tracking to predictions and suggestions. Second, smartwatches targeting kids and seniors are expanding to the open market. T-Mobile and Verizon have both offered kids and senior watches in the past, but eBuyNow (Motorola) and Xplora are adding competition in open channels. Xplora is especially well-placed to disrupt these underpenetrated markets with its aggressive service prices and the know-how it brings from its success in European markets. Lastly, breakthroughs still are yet to be made in blood sugar tracking and blood pressure monitoring. But these are certainly targets for many OEMs down the line. Both features would significantly improve the usefulness of smartwatches and improve demand.

India Becomes Biggest Smartwatch Market in Q3 2022

Driven by the basic smartwatch segment, the global smartwatch market grew 30% YoY.
India grew 167% YoY, taking the top spot for the first time thanks to the growth of local brands.
Apple grew 48% YoY thanks to strong sales of its newly released Apple Watch 8 series.
Noise grew 218% YoY to regain the top spot in the Indian market.

London, Seoul, New Delhi, Hong Kong, Beijing, San Diego, Buenos Aires – November 29, 2022

Despite inflation and geopolitical crises that have continued since the beginning of this year, the global smartwatch market shipments increased 30% YoY in Q3 2022, according to Counterpoint Research’s latest Global Smartwatch Model Tracker. During the quarter, India’s market grew 167% YoY to become the biggest smartwatch market in the world. Other markets also grew YoY, except China and Europe.

Research Analyst Woojin Son said, “Among the types of smartwatches*, the basic smartwatch, with relatively lighter versions of operating systems (OSs) and more affordable prices, has been the key driver in sharply boosting the global market recently. While HLOS smartwatch shipments grew 23% YoY in Q3 2022, basic smartwatch shipments more than doubled YoY, accounting for 35% of the total market. This remarkable increase in basic smartwatch shipments shows us that the market base is rapidly expanding toward more accessible segments amid aggressive drives by the supply side. But still, in terms of revenue, the HLOS smartwatch overwhelms the basic smartwatch with a market size of almost 10 times due to its high average selling price (ASP).”

Global Top-selling Smartwatch Brands’ Shipment Share by Device Type, Q3 2022

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q3 2022

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

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press@counterpointresearch.com

India Smartwatch Market Takes Second Spot for First Time in Q2 2022

The global smartwatch market grew 13% YoY in Q2 2022 with Apple retaining the top spot.
India became the second-largest smartwatch market driven by the strong growth of local brands such as Fire-Boltt and Noise.

Seoul, Beijing, Boston, London, Toronto, New Delhi, Hong Kong, Taipei – August 25, 2022

The global smartwatch market’s shipments grew 13% YoY in Q2 2022 amid macro uncertainties such as inflation and geopolitical conflicts, according to Counterpoint Research’s recently published Global Smartwatch Model Tracker. In particular, India’s smartwatch market grew by more than 300% YoY to overtake China for the second spot. Indian OEMs such as Fire-Boltt and Noise took top spots in global market share.

Associate Director Sujeong Lim said, “The market performed relatively well in the second quarter compared to the downtrend we expected three months ago. However, as expected, China’s economic slowdown resulted in a YoY decline in its market, with major Chinese brands such as Huawei, imoo and Amazfit seeing limited YoY growth or decline. Nevertheless, given that the smartphone market declined 9% YoY during the same period, we believe that the smartwatch market is on the right track to healthy growth.”

Global Top-Selling Smartwatch Brands’ Shipment Share, Q2 2022 vs Q2 2021

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q2 2022

Market summary

Apple’s shipments increased 8% YoY, taking the top spot in this quarter as well. However, as the effect of the new model launch gradually weakened, the decline in Apple Watch 7 series shipments became larger compared to the previous quarter.
Samsung maintained its second place with a 40% YoY growth. The Galaxy Watch 4 series has maintained its popularity, especially in North America and India.
Huawei took the first position in the Chinese market for the third consecutive quarter. But the brand will find it difficult to regain the second position from Samsung globally due to the brakes on its global expansion.
Xiaomi’s shipments increased 13% YoY with no significant change in its market share. The brand needs to increase its presence in India to further expand its market share, but competition will not be easy due to strong local brands.
Garmin fell two places to the seventh spot compared to the previous year. However, due to its higher ASP, the brand ranked third after Apple and Samsung in terms of wholesale revenues.
Amazfit’s shipments declined 11% YoY due to the weak demand in China market. But it performed well in India, growing 65% QoQ.
Fire-Boltt recorded a remarkable increase in shipments, taking first place in India’s market in terms of quarterly shipments.
Noise grew 298% YoY, gaining popularity in both online and offline markets of India. However, due to the rapid growth of Fire-Boltt, it lost the No. 1 position in the Indian market with a 26% share.

Smartwatch Shipment Proportion by Region, Q2 2022 vs Q2 2021

Source: Counterpoint Global Smartwatch Model Tracker, Q2 2022

By region, North America continued to occupy the top spot, but its gap with the second spot narrowed somewhat. A notable market for the quarter was India, which grew 347% YoY to overtake China for the second spot. Lim said, “During the quarter, 30% of models shipped in the Indian market sold for less than $50, and major local brands launched cost-effective models, lowering the entry barriers for consumers.”

China, which ranked second in the previous quarter, was pushed down to third place with a 10% YoY decrease in its shipments as consumer demand contracted due to COVID-19 lockdowns and negative economic growth. In addition, Europe, which ranked third in the previous quarter, was pushed down to fourth place with a 13% YoY decline against the backdrop of the Russia-Ukraine war.

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research
press@counterpointresearch.com

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