- Indian brands Noise and Fire Boltt made it to the list of global top 5 sellers
- 4Q22 shipments declined YoY after nearly two years of quarterly growth
According to a recently published report by Counterpoint, the global smartwatch market shipments grew 12% year-on-year (YoY) in 2022 due to the strong YoY growth seen in the first three quarters of the year. But, the report added, the shipments dropped 2% YoY in Q4 2022 amid inflationary pressures and slow domestic growth. It noted that this was the market’s first negative growth in eight quarters since the COVID-19 spread in 2020.
On the upside, India’s market saw a growth of over 150% in 2022 compared to the last year. Indian players also witnessed growth in global branding given a good performance in the domestic market. As per the Global Smartwatch Model Tracker, it grew consistently until Q3 2022 but fell 36% QoQ in Q4. Senior Analyst with Counterpoint, Anshika Jain commented, “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.”
Interestingly, this year witnessed price polarization in demand. The report suggested that the shipments in the mid-price range dropped while those in the >$400 and ≤$100 segments grew 129% and 34%, respectively, compared to 2021.
Research Analyst Woojin Son remarked about the brand spots, “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.”
“On the other hand,” Son added, “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.”
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry.