India’s smartwatch shipments declined by 32% YoY in Q2 2024, according to the latest research from Counterpoint’s IoT Service. The decline can be attributed to persisting inventory issues and changing consumer behaviour. The initial excitement for smartwatches is tapering off as consumers become more health-focused and look towards better sensor accuracy, leading to a slow replacement cycle. This focus on accuracy also explains the premium segment’s noteworthy growth during the quarter. However, first-time users continue to opt for smartwatches in the budget segment and are often influenced by color, material and finish (CMF).
Commenting on the market trends, Senior Research Analyst Anshika Jain said, “The consumers have started adopting a wait-and-‘watch’ strategy as the industry is transitioning towards the fitness domain. Following the previous quarter’s shipment stagnation, OEMs are realigning their strategies through partnerships across industries, including with network operators and technology providers, to redefine the user experience and revive demand. The emphasis has been on improving the user interface and adding features such as NFC payments, cellular connectivity and offline navigation to target experienced users who are looking to upgrade toward the higher price band. Brands are even expanding their portfolios in the kids’ smartwatches and advanced smartwatches categories, the segments that largely remain untapped in India. First-time users continue to perceive smartwatches as fashion accessories and take decisions based on price and CMF factors.”
On specification trends, Jain said, “The display remains a key factor in smartwatch purchases, as evident in the increasing popularity of 1.9-inch and above screen sizes. OLED displays are also increasingly preferred, featuring in a quarter of smartwatches sold in Q2. While Bluetooth calling has become standard, cellular connectivity is also on the rise, achieving its highest share since Q1 2021.”
On the OEM front, Noise reclaimed the top position during the quarter with a 29% market share. Fireboltt followed in the second position. Titan and its sub-brand Fastrack achieved the highest YoY growth among major players to secure the third spot, surpassing boAt. The premium smartwatch segment, dominated by Apple and Samsung, saw over three-fold growth due to a lower base as consumers started seeking high-end devices for better user interface and more accurate health sensors.
Commenting on the market outlook, Research Analyst Harshit Rastogi said, “Smartwatch shipments are projected to decline by 20% YoY in 2024. While entry-level smartwatches will continue to dominate the segment in the coming years, mature users are likely to upgrade to advanced smartwatches due to better smartphone integration and sensor accuracy. Although the average selling price (ASP) has decreased due to intense competition, we expect a gradual increase in the coming years as OEMs introduce new features, complemented by the growing share of premium smartwatches.”
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.
