NEW DELHI: The smartwatch shipments in India fell strongly by 32% year-on-year in Q2 2024 as initial excitement for such devices has started tapering off, according to the latest report released by Counterpoint Research on Monday.
The research firm has also attributed the decline to persisting inventory issues, adding that consumers now look for better sensor accuracy which is resulting in 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),” said Counterpoint in the report.
First-ranked Noise’s smartwatch shipment were down by 34% in the June 2024 quarter, and it held a volume share of 29% compared to a 30% share in Q2 2023. Second-placed Fire-Boltt’s shipments also fell by 40%, and its share was restricted from 28% in Q2 2023 to 24% in Q2 2024, while third-ranked Titan’s shipments surged by 87%, and the Tata group company expanded its share from 4% in Q2 2023 to 12% in Q2 2024, as per Counterpoint data.
Boat and Boult Audio, in the fourth and fifth ranks, also saw a 56% and 12% fall in shipments, respectively, in Q2 2024 compared to the corresponding quarter in 2023.
“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,” said Senior Research Analyst Anshika Jain.
Jain added that original equipment manufacturers (OEMs) are also focusing on improving the user interface by adding new features, and integrating new capabilities 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,” she said.
Counterpoint expects the smartwatch shipments to decline by 20% year-on-year 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,” said Research Analyst Harshit Rastogi.
He added that although the average selling price (ASP) has decreased due to intense competition, a gradual increase in the coming years is expected as OEMs introduce new features, complemented by the growing share of premium smartwatches.
