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India’s market grew 171 per cent (year-over-year) to become the biggest smartwatch market globally in Q3 2022, a new report showed on Tuesday.
Despite inflation and geopolitical crises that have continued since the beginning of this year, the global smartwatch market shipments increased 30 per cent (year-over-year) in Q3, according to Counterpoint Research.
“India’s smartwatch market grew 171 per cent (year-over-year) 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,” said Senior Analyst Anshika Jain.
She added, “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.”
Due to the strong sales of its newly released Apple Watch 8 series, Apple grew 48 per cent (year-over-year).
Noise grew 218 per cent (year-over-year) to regain the top spot in the Indian market.
However, Fire-Boltt lost market share to Noise in India, falling to second place behind Fire-Boltt.
Moreover, Samsung increased its shipments by 62 per cent (quarter-over-quarter) by launching the new Galaxy Watch 5 series, said the report.
“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 per cent (year-over-year) in Q3 2022, basic smartwatch shipments more than doubled (year-over-year), accounting for 35 per cent of the total market,” said Research Analyst Woojin Son.
The shipments in North America, which remained the largest market from Q4 2020 to Q2 2022, increased 21 per cent, but India grew so much that it was pushed to second place globally, the report added.
Here are some quick points from the Counterpoint 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 2.7% 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 oat targets the entry-level smartwatch market. oat 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.
