The strong performance of Indian brands like Noise, Fire-Boltt and boAt was a major factor in the YoY increase in outsourced smartwatch shipments in H2 2022
According to the latest Global Smartwatch Outsourced Manufacturing Tracker and Report from Counterpoint Research, global smartwatch outsourced manufactured shipments jumped 15% YoY and accounted for 69% of overall global shipments in H2 2022. Senior Research Analyst with Counterpoint, Shenghao Bai believes that 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 per the report, ODMs and EMSs have become major players in the smartwatch industrial chain as the global smartwatch market continues to grow. Bai added, “69% of global smartwatches were produced by ODM/EMS in H2 2022, compared with 63% in H2 2021.”
This year, the research firm expects the share of shipments from outsourced manufacturers to rise to about 70% from 68% last year.
Counterpoint named Luxshare, Foxconn and COMPAL as the leading outsourced manufacturers in H2 2022. Together, the three companies were responsible for half of the global smartwatch outsourced shipments during the said period.
Senior Research Analyst with Counterpoint, Ivan Lam commented, “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.”
Moreover, Huaqin, LINWEAR, I DO and Yawell remained strong Tier-2 players in smartwatch production businesses. Bai opined, “The competition is getting tighter as well. There are increasing requirements for OEMs to be mindful of cost, deliverability and reliability.”
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry.