India's smartwatch market grew by more than 300% year-on-year to overtake China for the second spot, with homegrown brands such as Fire-Boltt and Noise taking top spots in global market share, according to a report by Counterpoint Research.
Fire-Boltt recorded a remarkable increase in shipments, taking first place in India's market in terms of quarterly shipments, Counterpoint Research's recently published Global Smartwatch Model Tracker says.
Noise grew 298% year-on-year, gaining popularity in both online and offline markets of India. However, due to the rapid growth of Fire-Boltt, it lost the No. 1 position in the Indian market with a 26% share, the report says.
The global smartwatch market's shipments grew 13% year-on-year in the second quarter of calendar year 2022 amid macro uncertainties such as inflation and geopolitical conflicts.
"The market performed relatively well in the second quarter compared to the downtrend we expected three months ago. However, as expected, China's economic slowdown resulted in a YoY decline in its market, with major Chinese brands such as Huawei, imoo and Amazfit seeing limited YoY growth or decline. Nevertheless, given that the smartphone market declined 9% YoY during the same period, we believe that the smartwatch market is on the right track to healthy growth," says Sujeong Lim, associate director, Counterpoint Research.
By region, North America continued to occupy the top spot, but its gap with the second spot narrowed somewhat.
A notable market for the quarter was India, which grew 347% Y-o-Y to overtake China for the second spot. "During the quarter, 30% of models shipped in the Indian market sold for less than $50, and major local brands launched cost-effective models, lowering the entry barriers for consumers," Lim says.
China, which ranked second in the previous quarter, was pushed down to third place with a 10% Y-o-Y decrease in its shipments as consumer demand contracted due to Covid-19 lockdowns and negative economic growth.
Apple's shipments increased 8% on a yearly basis, taking the top spot in this quarter as well. However, as the effect of the new model launch gradually weakened, the decline in Apple Watch 7 series shipments became larger compared to the previous quarter, the report says.
Samsung maintained its second place with a 40% year-on-year growth. The Galaxy Watch 4 series has maintained its popularity, especially in North America and India, it adds.
Xiaomi's shipments increased 13% Y-o-Y with no significant change in its market share. "The brand needs to increase its presence in India to further expand its market share, but competition will not be easy due to strong local brands," says Counterpoint Research.
Garmin fell two places to the seventh spot compared to the previous year. The brand ranked third after Apple and Samsung in terms of wholesale revenues.
Amazfit's shipments declined 11% Y-o-Y due to the weak demand in the China market. It, however, performed well in India, growing 65% quarter-on-quarter.