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After two successive quarters of decline, the global smartwatch market returned to growth in Q2 2023. According to research firm Counterpoint, smartwatch sales increased 11% year-on-year (YoY) in the second quarter of the year. The firm reported a decline in shipments in both Q4 2022 and Q1 2023.
As has been the trend for the past several quarters, this growth is driven by a massive surge in smartwatch adoption in India, the most populous country in the world. The market saw a 70% YoY increase in sales, capturing more than one-third (34%) of the global market. That’s a 12 percentage point jump from a 22% share in the second quarter of 2022.
This isn’t surprising when you consider that the Indian smartwatch market grew 121% in the previous quarter when the global market declined. The region saw a staggering 151% annual growth in shipments in 2022. All of this is thanks to low-cost offerings from local brands like Noise, Fire-Boltt, and Boat. The trio collectively accounted for 72% of total shipments in the country this past quarter.
Overall, 88 percent of smartwatches shipped in India in Q2 2023 were priced lower than $50. Counterpoint doesn’t provide a breakdown of product prices for other regions, but low-cost models aren’t likely to be as much prevalent anywhere else. In China, the share of products priced more than $500 surged to around 34%. High-end products had sustained popularity in the US as well.
Apple and Samsung suffered a drop in smartwatch sales in Q2 2023
For years, Apple has been the world’s largest smartwatch maker. It retained the top spot this past quarter as well. However, it suffered a 10% YoY decline in shipments. Its market share dropped from 27% to 22%. Counterpoint says this is the first time Apple’s quarterly smartwatch shipment volume has gone below eight million units in the last three years.
Samsung also suffered a massive decline in smartwatch sales in Q2 2023. The Korean firm’s shipments grew in India and China, but these markets have never been the volume drives for it. A lackluster performance in its two pivotal markets, North America and Europe, means its sales dropped 19% annually. The company wasn’t among the top three biggest smartwatch makers this past quarter.
It’s worth noting that Samsung usually sees a seasonal drop in the second quarter. This is because customers wait for new Galaxy Watch models in the third quarter. However, the growing popularity of local brands in India means its global market share is declining gradually. Time will tell whether the launch of the Galaxy Watch 6 series will help Samsung climb up this chart in the second half of the year.
