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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

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.

China’s VR Shipments Declined 56% YoY in H1 2023 – Will Apple and Meta Revive it?

China’s Virtual Reality (VR) market declined by 56% year-over-year (YoY) in H1 2023, marking an end to the market’s two-year growth streak spanning 2020-2022.
Market leader Pico has chosen to strategically scale back its marketing investments since 2023 to ensure a healthier operation amid China’s tepid economic recovery, resulting in lower shipments target for its VR headsets.
Despite the bleak sales figure of the existing market, launch of Apple’s Vision Pro has ignited a wave of inspiration to drive the industry forward.

China’s VR market shipments declined significantly by 56% YoY in H1 2023, according to the latest data from Counterpoint’s China eXtended Reality (XR) research service. This marked the end of the Chinese VR market’s two-year growth streak, spanning 2020-2022, and reverting to a state of stagnation. The decline in China appears to be more severe than that observed in the global VR market, which fell 39% YoY in H1 2023. Consequently, China’s share of the global VR shipments in Q2 2023 accounted for only 10%, which is relatively low compared to its 20%-30% share in the global smartphone market.

Exhibit 1: China VR Market Shipments and YoY Growth, CY2018-H1 2023

Source: Counterpoint China XR Tracker, Q2 2023

Note: VR headsets referred to here exclude smartphone boxes that rely on a smartphone to serve as the display panel.

The subdued market demand in China can be attributed to several factors. Firstly, the market’s growth over the past two years was largely driven by the extensive marketing efforts of China’s leading VR player, Pico. After it was acquired by internet giant ByteDance in September 2021, Pico significantly ramped up its product promotion to drive sales. However, since 2023, Pico has chosen to strategically scale back its marketing investments to ensure its operations are more stable amid China’s tepid economic recovery. Consequently, this decision has resulted in a lowered shipment target for Pico’s VR headsets. Secondly, despite Pico’s efforts to educate consumers on the enjoyable and entertaining experiences offered by VR headsets over the years, the absence of killer applications and a robust content ecosystem remains a significant challenge in China’s VR industry, hindering user adoption and retention. Additionally, during H1 2023, the absence of enticing new products in China dampened consumer demand. While the sales generated by new models such as Sony’s PSVR 2 and the Pico 4 Pro showed promise, they were insufficient to counteract the noticeable decline in the overall market.

In terms of the competitive landscape, China’s VR market has seen significant consolidation, with just a handful of dominant vendors. As market leader, Pico holds a substantial market share of roughly 50%. However, even Pico experienced an over 50% YoY decline during H1 2023. Sony captured a 19% share of the market thanks to a significant sales surge following the release of PSVR 2, which attracted Chinese PlayStation enthusiasts to purchase and explore the product. Nevertheless, it is expected that the momentum of the PSVR 2 will wane during H2 2023. DPVR continues to lead in China’s enterprise segment due to its competitive pricing, but it also faces a decline due to a slowdown in spending on digital transformation by Chinese enterprise customers. Apart from the top three players, there are limited providers competing in China’s VR segment, with iQiyi withdrawing from the market due to operational difficulties.

Exhibit 2: Market Share (%) of VR Headset OEMs in China and YoY Growth (%)

Source: Counterpoint China XR Tracker, Q2 2023

Notably, Meta’s Quest VR is not yet officially available in the Chinese market, while Chinese smartphone OEMs such as OPPO, vivo and Xiaomi, despite their success in the global smartphone market, appear to be cautious when it comes to introducing a commercial VR headset.

Will Apple and Meta MR Headsets Revitalize Sales in China?

Despite the bleak sales figures of the existing market, the launch of Apple’s first MR headset, the Vision Pro, along with the accompanying “spatial computing” concept, has generated a significant buzz in the Chinese technology industry. Apple has set an industrial standard for what an ideal product can be, and we believe that the Apple Vision Pro (AVP), though not yet available in the market, has ignited a wave of inspiration to drive the industry forward.

Since the release of the AVP, China’s dedicated VR companies have actively delved into its technology specifications and ramped up their R&D endeavors. They are particularly focused on optimizing ultra-low-latency color video see-through technologies, optical solutions, and hand tracking algorithms, aiming to bridge the technological gap with Apple.
Chinese smartphone OEMs (Original Equipment Manufacturers), previously cautious with a “wait-and-see” approach to commercializing AR/VR headsets, are now re-evaluating their investments. Fearing the risk of lagging behind in the “spatial computing” era, strategic initiatives have been launched within these companies to reassess their projections regarding technology development trends and potential breakthroughs in the consumer XR segment. Additionally, we’ve noticed several OEMs bolstering their XR research teams to prepare for their first commercialized product, forging closer partnerships with industry players such as Qualcomm and Google.
Meanwhile, China’s internet giants, some of whom had scaled back investments or disbanded their “Metaverse”-related departments in early 2023, are now re-entering the arena. Tencent, for instance, is reported to have recently established the XR Device & Content Business Group within its Interactive Entertainment Group (IEG) to oversee the development, sales, and promotion of its forthcoming XR products. The company is also in discussions with Meta regarding a potential partnership to localize the Quest VR and integrate Meta’s content ecosystem in China.
Chinese Augmented Reality (AR) companies also have a more optimistic outlook for their future development, thanks to the emphasis on Mixed Reality (MR) features by the AVP. They strongly believe in the significance of the interaction between virtual objects and the real world, which may position AR as the ultimate future solution. In contrast to the challenges faced by China’s VR segment, Counterpoint’s China XR tracker indicates robust YoY growth in China’s AR glasses market during H1 2023. China is also a global leader in the development and commercialization of consumer AR glasses, despite the relatively small market base at present.
In the software domain, Shanghai is among the cities where the Developer Lab for the AVP is located, alongside Cupertino, London, Munich, Singapore, and Tokyo. Apple has commenced hosting Chinese developers since June, supporting them to create and run their applications on the VisionOS platform. We expect this to invigorate the Chinese application ecosystem for MR headsets, creating new opportunities for applications beyond just gaming.

Despite the positive impacts that the AVP has had on China, it remains to be seen how tangible of a sales boost it will provide to the market. The product is primarily aimed at developers rather than consumers, with a price tag of $3,500. Additionally, the user experience of the AVP, which relies on the combination of Apple’s proprietary M2 System on Chip (SoC) and R1 co-processor, presents a significant challenge for Chinese hardware players to catch up in the short term.

Meta’s newly launched Quest 3 headset, the first MR product to hit the consumer market based on Qualcomm’s XR 2 Gen 2 platform, has emerged as a more attainable benchmark for Chinese companies in the near term. Based on the hardware specifications disclosed by Meta, the Quest 3 has demonstrated substantial improvements in MR features, which are poised to open up new avenues and application scenarios for developers. However, it also seems that the Quest 3 has not fully tapped into the best capabilities of the XR 2 Gen 2 platform. Consequently, there may be opportunities for improvement that Chinese latecomers can explore. We expect these opportunities to catalyze the launch of new products by Chinese hardware OEMs in 2024/2025.

Furthermore, the advancements made by Meta with both the Quest 3 and its upcoming products, coupled with the competition presented by Apple, are likely to expedite the closing of a deal between Tencent and Meta within the Chinese market. This presents a noteworthy opportunity to enhance the sales and adoption of XR products in China.

We will closely monitor the market to observe how the competitive landscape will be reshaped with the entrance of these newcomers.

Global TWS Market Dominated by Entry-level Segment in H1 2023, Premium Segment Cools

The entry-level (<$50) segment continued to grow as TWS adoption rose across emerging markets.
Premium brands such as Apple, Samsung and Sony marked a slowdown due to a lack of new models.
For full year 2023, we forecast TWS sales to grow 2% in volume but decline 3% in value due to a mix shift towards low-cost TWS sales across emerging markets.

The global TWS market’s unit sales slipped only 2% YoY in H1 2023, according to the latest data from Counterpoint’s TWS Hearables Market Tracker, despite low demand for IT devices amid macroeconomic headwinds and consumer weakness. Surprisingly, the TWS market seemed somewhat immune to inflationary headwinds, especially the <$50 entry-level segment where sales increased 15% YoY in H1 2023. This mitigated the sales decline in higher-tier price segments as TWS demand polarized towards the entry and premium categories.

Some of these ups and downs within the price segments were driven by regional demand dynamics. In H1 2023, demand contracted in mature markets like North America and Europe where the TWS penetration has reached a mature level. In contrast, underpenetrated emerging markets like India, the Middle East and Africa, and Latin America registered robust growth during the period. China, one of the world’s largest TWS markets, showed signs of recovery as the COVID-19-related lockdowns eased in the latter half of 2022. The uptick in H1 2023 was also driven by the 618 e-commerce festival and promotions in China. The period also witnessed the rise of low-cost TWS brands. Chinese entry-level brand ZhengQibing saw sales unit growth of 141% YoY in H1 2023 as it focused on the sub-$20 models with attractive features and CMF designs.

Global TWS Market Share by Price Band, H1 2023 vs H1 2022 (Retail Price-based)

Source: Counterpoint’s TWS Hearables Market Tracker, Q2 2023

Additionally, the rising demand for TWS in big underpenetrated markets such as India, along with the Chinese market’s recovery helped the <$50 price category grow further. India’s Q2 2023 TWS shipments rose 34% YoY, capturing a 15% global share.

In India, local TWS brands such as boAt, Boult Audio and Noise reported strong double-digit YoY growth in Q2 2023driven by a broader portfolio of entry-level models. boAt successfully leveraged online shopping events like Amazon Prime Day, Flipkart Big Saving Days, and other online promotions to fulfill the demand for new affordable models. Boult Audio, with a keen focus on affordability, strategically launched a series of new models priced below $25, effectively drawing in customers. Noise‘s major model series, the Noise VS102 and VS404, were well received due to their affordable price, satisfactory sound quality, and long battery life. Additionally, they offered an up to 80% discount on their audio products during the Noise Anniversary Sales in 2023. The enhanced performance of models in the <$25 (retail price) segment also played a significant role in boosting sales.

Specifications of Major Entry-level TWS Models

Sources: Official Websites

Global TWS Market Growth by Price Band, H1 2023 vs H1 2022 (Retail Price-based)

Source: Counterpoint’s TWS Hearables Market Tracker, Q2.2023

Meanwhile, major global players such as Apple, Samsung and Sony saw market share declines and slower growth in the absence of new models. These premium-focused brands are bringing about incremental improvements in features compared to the low-cost models of challenger brands that are trying to innovate on design, audio features, latency, battery life, and more. Samsung also saw a noticeable decline in sales share on the high-tier price range with its aggressive pricing and promotions on the Galaxy Buds 2, due to a mix-shift in sales volumes centered around the $50-$100 price segment. Overall, the absence of new model releases and the lack of new features failed to drive replacement demand which resulted in a decrease in sales in the high- and premium-tier segments in H1 2023. The upcoming AirPods 2 with the new H2 chip and support for lossless audio, optimized for the upcoming Apple Vision Pro XR headset, could drive some uptick during the holiday season in Q4 2023.

Looking forward, the global TWS market’s sales volume is set to grow by 2% YoY in 2023, but revenue will decrease by 3% YoY. We expect the TWS market to keep growing till 2026 and the attach rate to new smartphone sales to reach 36% as the average lifespan of a TWS device before replacement reaches 1.5-1.8 years.

Apple Vision Pro: A Trillion-dollar Insurance Policy

At the launch of the iPhone 15 and Watch 9 series this week, Apple mentioned that it was on track to release the Apple Vision Pro, which it announced in June this year, in early 2024. It has also included some features in the new iPhone and Apple Watch that are consistent with its Vision Pro development:

A double-finger tap gesture can be used to select actions in the Apple Watch 9. The gesture uses a mix of sensor inputs processed by the Watch 9’s upgraded neural engine to identify the prompt. While the Apple Vision Pro uses cameras to spot gestures, the new Watch interactions will engender the use of subtle hand gestures that will also be used to interact with the Apple Vision Pro.
The new iPhone 15 Pro and Pro Max cameras can record images and videos stereoscopically. When viewed via the Vision Pro, the images and videos will have depth and provide a more immersive experience.

In our analysis of the Apple Vision Pro, we highlight that it is the most complex consumer electronics product ever made. And it is already causing a shift in approach by its rivals.

Nevertheless, we still believe that Apple is using the Vision Pro essentially as an insurance policy. The majority of Apple’s revenue and profit is derived from the iPhone product line, and related products and accessories – Watch, for example, would not exist without iPhone.

Therefore, iPhone is the core of Apple’s almost $2.75-trillion market cap (at the time of writing). Apple is bound to do anything in its power to defend the iPhone’s market position.

For a long time, people have speculated that the product most likely to replace the smartphone as their primary interface with digital life will be some sort of augmented reality device. So far, the eXtended Reality (XR) market has been disappointing – generating a few 10s of millions of unit sales but not a huge amount of consistent usage, apart from some niche enterprise use cases. Furthermore, the technical challenge of making true augmented reality glasses has proven to be beyond the capabilities of even the most technically gifted companies.

Apple is therefore not immediately threatened by the slowly developing XR industry. But would it be wise for it to sit on the sidelines and watch while potential competitors work on what might, one day, be a product that can truly compete with its iPhone revenue stream? Of course not, and it hasn’t.

For Apple, the worst possible outcome would be if the XR segment took off strongly and it did not have a product in the game. Even if Apple spends a few billion dollars developing its XR products and the market still doesn’t take off, it would be costly but scarcely make a dent in its ample cash reserves.

So, Apple has made the logical choice and invested in creating the Apple Vision Pro. Along the way, it has amassed an impressively large patent portfolio that it can use to defend its position.

If, ultimately, the XR market does take off, Apple will be in a prime position to exploit the opportunity. However, if it continues to behave as an interesting niche market, then Apple has cemented its place by having a product that will be used to measure all others.

Subscribing clients can read our full analysis of the Apple Vision Pro that also includes sales projection scenarios.

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.

Jabra Evolve2 65 Flex Review: Unfolding Future of Hybrid Work with Personalized ANC, Comfort & Lightweight Foldable Design

COVID-19 has accelerated the shift to hybrid work models while transforming the technological needs of the new-age professional. For example, the need for good wireless headsets for working in home, office or cafe environments has become imperative. However, designing a versatile headset for these hybrid work scenarios becomes challenging if we add the growing business travel to the equation.

For the last over 10 years, I have been working in front of the PC either at home, office or while traveling, but my search for an optimum lightweight wireless headset with top-notch active noise cancellation (ANC) continues. I have used multiple wired ANC headsets from Plantronics to Sennheiser for my desktop PC or laptop at home for years. While they have performed well, most of them are USB-Type A and their wires often become entangled, besides limiting their movement and lifespan.

Since carrying these headsets during a business trip is not only impractical but now also leads to incompatibility issues with the new wave of USB Type-C-only laptops, I have been mostly relying on the TWS headsets from Apple, Samsung, Sony, OnePlus and Nothing. Though they do a decent job, most of them have average battery life and hit-or-miss ANC capabilities, and sometimes they pop out without permission.

However, a month ago, our test lab received the Evolve2 65 Flex, Jabra’s latest addition to its portfolio of professional wireless headsets, and it has left us thoroughly impressed! It addresses most of the needs of the hybrid workstyle.

Foldable, lightweight and comfortable design

The Jabra Evolve2 65 Flex sports a unique fold-and-go Danish design, which makes it very easy to carry the headset across multiple hybrid work modes. Further, to complement the foldable design, the headset weighs a mere 136 gm. It is made from high-quality PC/PC-ABS material, making it lighter, durable, flexible and rugged at the same time. As a result, the overall form factor is very compact.

The unique adjustable and collapsible headband design has layers of perforated foam, making it softer on the head. This along with rotating earcups with ultra-soft leatherette cushions helps the headset provide hours of comfortable usage. Jabra calls this new pattern, choice of materials and perforated design “Air Comfort” technology. The proof point for me was using it for 20 hours straight on a flight to the US, with ultimate comfort. There was no ear or head pain, or sweating, or the headset slipping off my head even when I briefly dozed off.

Another striking design element is that the external microphone stick folds back into the headset, transforming it into a cool personal headset for consuming music or entertainment on the go.

The headset sports seven buttons on the earcups. Initially, I was confused about the alignment and functions of each button. However, after a week’s usage, these etched into my muscle memory and proved to be quite useful. The buttons cover functions including power on/off, Bluetooth pairing, switching between ANC and HearThrough, volume/pause/play, opening UC apps such as Microsoft Teams, call connect/disconnect, and mute/unmute/command voice assistant.

Premium audio, ANC and voice calls

The Jabra Evolve2 65 Flex sports two analog MEMS and four digital MEMS microphones. It also features unique algorithms to slice out the background noises with the help of an advanced chipset to deliver premium, stable and enterprise-grade voice calling with a hybrid ANC experience. The call quality is fantastic in any environment, whether a closed cabin, noisy subway or Uber taxi, and device type, whether a laptop, smartphone or tablet.

The different customizations and personalizations using Jabra’s Sound+ app make the sound and voice quality optimal for ANC, HearThrough, or ANC-off modes. The integrated 360° Busylight, which is visible from all angles, is a great feature to notify when one is on a call or busy working by acting as a “do-not-disturb” sign.

The headset is certified for leading UC platforms from Microsoft Teams, CISCO Webex, Zoom, Google Meet, Amazon Chime, and others. The headset that I have been using is a Microsoft Teams variant with a dedicated button and the experience optimized for Teams calls.

The Sound+ app also helps set up the personal assistant on the device for enabling commands at the press of a button, and it works flawlessly on both iOS and Android. Also, it is recommended to set up your sound profile under “MySound” to optimize the headset to match your hearing profile.

The Sound+ app is also useful in optimizing the sound or audio depending on the type of content, like music or movies. The music presets are great along with the ability to save custom equalizer settings. The headset sports custom 28mm speakers with a full audio frequency range from 20Hz to 20KHz. After a week of “burn-in”, the headset is great for listening to music, especially classical, gothic rock, vocals and ballads, offering a much clearer and fuller sound, almost as good as a $200 in-ear headset.

Longer battery life and stable connectivity

What stands out for me is that the Jabra Evovle2 65 Flex is a light, foldable and compact form factor, along with a tremendous battery life. I recently used the headset for 20 hours straight during a flight to the US, with a mix of movies and music. At the end of the flight, the battery dropped to only 63% despite a mix of ANC on/off modes. I charged the headset just once during my 10-day business trip and usage of close to 60 hours, which is about 30 hours of usage per charge, very close to Jabra’s claim of 32 hours per full charge. Further, the headset can be wirelessly charged with a beautiful bundled wireless charging dock stand. The overall charging time via USB Type-C is less than 90 minutes and slightly longer with the wireless charging dock.

The headset can connect with two Bluetooth-enabled devices at the same time, like a laptop and primary phone, or primary and secondary phones. In terms of overall pairing, the headset can pair and remember up to eight devices. The headset also features Google Fast Pair for quick pairing with Android phones.

Wrapping up

The Jabra Evolve2 65 Flex ticks all the right boxes, from compact, collapsible and comfortable design to premium audio and voice call experience with unparalleled battery life, making it one of the best UC and on-ear headset in the market. It is great for someone who travels a lot or uses headsets for long calls and doesn’t want to worry about charging or comfort. The headset comes at a premium price point of $500 or ₹45,000. I would highly recommend the headset as it offers tremendous value for money and sets new standards in the premium professional wireless headset space.

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

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

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press(at)counterpointresearch.com

Global XR Headset Market Declined in Q1 2023 With No New Quest Model

Global XR headset shipments (covering AR and VR headsets) declined 33% YoY in Q1 2023.
Consumers are losing interest in the XR market, as market leader Meta’s Quest series has not been refreshed in over two years.
Quest series has cumulatively shipped more than 20 million units as of Q1 2023, with the Quest 2 contributing 18 million units.
The newly released PSVR2 garnered significant attention from the video-gaming brand’s user base, leading Sony to capture the second position in Q1 2023.
2023 is the year of next-generation VR headset launches. The PSVR2, E4 and Vive XR Elite are some of the prominent launches so far. And then, of course, Apple has announced its Vision Pro.

London, San Diego, New Delhi, Beijing, Buenos Aires, Seoul, Hong Kong – July 5, 2023

Global extended reality (XR) headset shipments (covering augmented reality (AR) and virtual reality (VR) headsets) declined 33% YoY in Q1 2023, according to Counterpoint Research’s XR Model Tracker. Consumers are losing interest in the XR market, as Meta’s Quest series, the market leader, has not been refreshed in over two years. The performance of the newly launched next-generation Sony PSVR2 (PlayStation VR2), along with the price reduction of the Quest 2 by Meta, saved the global market from a more drastic decline.

Meta was the best-selling global XR headset brand during Q1 2023 with the Quest 2 as its long-time best-performing VR headset. The Quest series has cumulatively shipped more than 20 million units as of Q1 2023, with the Quest 2 contributing 18 million units. The Quest 2 continues to sell relatively well and to maintain its momentum, Meta is making the headset more affordable by lowering its price after last year’s price increases. Besides, Meta has announced the launch of Quest 3 later this year, which is expected to further boost sales and transition from the success of Quest 2.

Nevertheless, Meta’s shipment share fell to 49% in Q1 2023, the lowest since the launch of Quest 2 in Q4 2020. This decline was a result of the highly anticipated launch of Sony’s successor to its 2016 headset PSVR. The newly released PSVR2 garnered significant attention from the video-gaming brand’s user base, leading Sony to capture the second position in Q1 2023 with a 32% market share. Besides, the PSVR2 shipped 1.2 times more units than its predecessor in the first quarter of its launch.

Pico and DPVR took third and fourth places with market shares of 7% and 6% respectively. While Pico’s performance had earlier improved after its acquisition by TikTok’s parent company ByteDance, a lack of attractive consumer use cases and limited high-quality content resulted in a 38% decline in its shipments in Q1 2023.

DPVR’s shipment volumes are primarily driven by its enterprise partners, with whom it has established strong relationships. These partners regularly place orders for several thousand units. However, delays in orders from education sector partners led to a 40% decline in DPVR’s shipments in Q1 2023.

2023 is the year of next-generation VR headset launches. Sony’s PSVR2 , DPVR’s E4 and HTC’s Vive XR Elite are some of the prominent launches so far this year. Having advanced technology and features, these headsets are retailing at around or over $500, which will likely negatively impact their sales potential. It will also depend on how much value consumers perceive these VR headsets are delivering.

And then, of course, Apple has announced its Vision Pro, which has set a new high bar for consumer XR devices, though at a price above most people’s reach. Apple will nevertheless cast a shadow over the market ahead of the Vision Pro’s actual release.

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:

Karn Chauhan

Peter Richardson

Harmeet Singh Walia

Follow Counterpoint Research
press(at)counterpointresearch.com

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