Wearable market returns to growth after six months of decline

The global wearable market has returned to growth after two successive quarters of year-on-year (YoY) decline in shipments. According to research firm Canalys, the industry shipped 44.2 million units of wearable devices in Q2 2023. That’s a six percent annual growth from the same period last year. The firm had reported an 18 percent YoY decline in the year-ending quarter of 2022, followed by a one percent decline in the first three months of 2023.

As has been the trend lately, the basic watch category registered the biggest growth across the market. It accounted for 44 percent of the whole market this past quarter, the biggest share of the category yet. Shipments of basic watches grew in the previous quarters as well, despite an overall decline in wearable shipments. This is thanks to a phenomenal rate of low-cost smartwatch adoption in India, the world’s most populous country.

The Indian wearable market saw a 73 percent growth in sales of basic watches this past quarter, the report states. Local companies like Noise, Boat, and Fire-Boltt led the charge with entry-level models offering exceptional value to consumers. Fire-Boltt, for example, had an average selling price below $19. This, coupled with affordable products from Huawei, Xiaomi, and Huami ensured that basic watches continued their phenomenal sales momentum in India.

The basic band category, which has been steadily declining in recent years, saw a further drop in shipments in Q2 2023. This category captured 19 percent of the global market. Shipments of smartwatches, meanwhile, mostly remained flat YoY from last year. As usual, the category should see notable growth in the third and fourth quarters. Samsung’s Galaxy Watch 6, Apple’s Watch 9, and Google’s Pixel Watch 2 should drive smartwatch sales.

Apple continued to top the global wearable market in Q2 2023

Apple has been the world’s largest smartwatch company for the past several years. It continues to top the market despite a three percent annual decline in shipments and the emergence of new Indian brands. Noise and Fire-Boltt have both made it into the top five with eight percent and seven percent market share, respectively. Their shipments grew a whopping 93 percent and 86 percent in Q2 2023.

However, they are nowhere close to Apple, which captured 20 percent of the global wearable market this past quarter. Xiaomi (11 percent) and Huawei (10 percent) sit below the Cupertino giant. While Xiaomi’s shipment remained flat, Huawei registered a 13 percent growth. Samsung has dropped out of the chart but could make it back in the second half of the year if the Galaxy Watch 6 series sells well.