According to Counterpoint Research’s Global Smartwatch Model Tracker, the global smartwatch shipments increased by 12% YoY in 2022, driven by a strong growth of shipments in the first three quarters. However, it witnessed a decline of 2% YoY in Q4 2022. The report shows that there is a price polarization in demand, with shipments in the mid-price range dropping, while those in the >$400 and ≤$100 segments increasing by 129% and 34%, respectively, compared to the previous year.
One of the major highlights of 2022 is the increase in the >$400 price band, with shipments doubling YoY. This is largely due to Apple, which strongly drove the average selling price (ASP) rise in the global smartwatch market. Apple released its first premium model, Ultra, at a release price of $799 in the US, and as the exchange rate rose, the local price of Apple Watch in various countries changed. The demand for the premium segment remained strong despite the decline in consumer sentiment at the end of 2022.
Counterpoint Research’s report shows that in 2022, Apple’s shipments increased by 17% YoY, accounting for about 60% of the global smartwatch market revenue. On the other hand, Samsung’s yearly shipments increased by 12%, accounting for only 10% of global smartwatch shipments. Huawei’s market share fell 1% YoY.
In terms of regions, North America remains the largest smartwatch market, recovering in Q4 2022. The region showed a significant increase in shipments driven by the strong performance of Apple in the fourth quarter. Senior Analyst Anshika Jain said, “The third quarter of 2022 saw a big rise because most of the brands pushed high inventories into the channel ahead of the festive season. Therefore, we saw a decline in shipments in the fourth quarter.”
The report shows that while the global smartwatch market has continued to grow in 2022, the growth rate has slowed compared to previous years. However, there are some bright spots, such as the significant increase in shipments in the >$400 and ≤$100 price bands and the strong performance of Indian brands. As the demand for smartwatches continues to increase, it will be interesting to see how the market develops in the coming years.
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