India's Wearable Device Market Grew 2.1% YoY in 1Q24 to 25.6 Million Units
May 24, 2024 | IDCEstimated reading time: 2 minutes
According to International Data Corporation’s (IDC) India Monthly Wearable Device Tracker, India’s wearable device market grew by 2.1% year-over-year (YoY) to 25.6 million units after growing by at least double digits consecutively since 4Q17. The growth was restricted by the high inventory carried over from the festive quarters in 2H23. The average selling price (ASP) for overall wearables declined by 17.8% in 1Q24, from US$22.62 to US$18.59, a record low.
Key Highlights of 1Q24:
- Smartwatch shipments declined for the first time since 4Q18, by 7.3% YoY to 9.6 million units. The share of smartwatches within wearables dropped to 37.6% from 41.4% in 1Q23. Excess inventory in the online channel and fewer new launches led to this decline. Smartwatch ASPs dropped to US$20.65 from US$29.24 a year ago on the back of e-tailer sales events and discounts. The share of advanced smartwatches increased from 2.0% to 3.2%.
- The earwear category grew by 8.3% YoY, shipping 15.9 million units. Within earwear, the share of the Truly Wireless Stereo (TWS) segment reached 70.1% from 63.8% a year ago, growing by 19% YoY. Other shipments of earwear (including tethered and Over-ear) declined by 10.6%. ASPs for earwear declined by 7.3% to US$16.62.
- The top five vendors namely BoAt, Noise, Fire-Bolt, Boult, and Oppo, remain unchanged from a year ago. Although their collective share declined from 63.9% to 59.9%, the long tail of smaller vendors gained share. Within the smartwatch category, shipments of the top three vendors declined due to high channel inventory. However, Titan and BeatXP grew by 2X and 3X respectively. In the earwear category, all vendors from the top five grew their shipments, except Boult.
“Vendors have started focusing on retail expansion via partnerships with large format national and/or regional retail chains and bundling wearables with other product categories like smartphones, laptops, etc. It will be interesting to see if these initiatives help bring back the growth momentum, especially in the festive sales period in the second half of the year,” said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India.
Offline channel share increased to 37.9% from 26.1% in 1Q23. Online channel shipments declined by 14.1% YoY in 1Q24, its second consecutive quarter of decline.
The momentum for the smart ring category continues, with 64 thousand smart rings shipping in 1Q24 at an ASP of US$173.06. Ultrahuman continues to lead the smart ring market in India with a 43.9% share, followed closely by Pi Ring at 40.1% and Aabo at third with an 8.4% share.
Commenting on the wearable device market outlook for the year, Vikas Sharma, Senior Market Analyst, Smart Wearable Devices, IDC India says, “The smartwatch market is showing early signs of a slowdown in India. The vendors are facing challenges in luring customers to upgrade due to limited innovation and freshness in newer models. IDC expects a low double-digit annual shipment decline for smartwatches in 2024. At the same time, earwear shipments are expected to grow by mid-single digit, driven by AI capabilities and affordable yet advanced features like active noise cancellation options.”
Suggested Items
Q1 Smartphone Production Increases Due to Low Base Last Year, Expected to Decline 5–10% in Q2
06/14/2024 | TrendForceTrendForce reports that suppliers significantly reduced production targets in the first quarter of last year to address severe inventory accumulation in channels.
Top 10 Global Foundries at 4.3% QoQ Drop in 1Q24 Revenue as SMIC Climbed to 3rd Spot
06/12/2024 | TrendForceAs indicated by the survey of global market intelligence firm TrendForce, 1Q24 marked the entry of a traditional off-season for the consumer end, where the sporadic appearance of urgent orders within the supply chain were mostly replenishment of inventory among individual clients, and exhibited sluggishness in momentum on the whole.
Sharp Decline in European Electronics Manufacturing Jeopardizes Strategic EU Priorities
06/11/2024 | IPCA new report by IPC, reveals Europe’s growing dependency on other regions for electronics manufacturing in critical and strategic sectors including aerospace and defence. Despite the adoption of the European Chips Act, the Securing EU’s Electronics Ecosystem report finds the EU’s market share in critical electronics components beyond chips,
Africa's Smartphone Market Surpasses Feature Phones for the First Time in Q1 2024
06/07/2024 | IDCAfrica's smartphone market showed remarkable resilience in the face of macroeconomic challenges and forex issues in Q1 2024, with shipments increasing 17.9% year on year (YoY) to reach 20.2 million units.
Kitron: Issue of Shares Under Share Incentive Program
06/04/2024 | KitronReference is made to Kitron ASA's previous disclosures regarding its share incentive program. Kitron has received exercise notices from the participants in the share incentive program and Kitron's board of directors has consequently resolved to issue 700,027 new shares.