According to the latest global smartwatch model tracking report released by Counterpoint Research, global smartwatch shipments increased by 9% year-on-year in the third quarter of 2023. After experiencing a slowdown earlier this year, the smartwatch market regained growth momentum in the second quarter of 2023 and continued its favorable trend in the third quarter. The main factors driving this growth are the continued strong performance of the Indian market led by Fire-Boltt and Huawei's sharp rebound in the Chinese market.
Research analyst Woojin Son said: "It is of great value to study the growth drivers of the global smartwatch market in the third quarter of 2023. Against the backdrop of the global economic slowdown, most consumer device markets such as smartphones have remained stagnant compared with a year ago. In contrast, the high-end and budget segments of the smartwatch market have experienced two consecutive quarters Recording year-on-year growth. Notably, premium operating system (HLOS) smartwatches typically have higher specifications and prices, and the growth in Q3 2023 was mainly driven by Huawei, which posted its highest quarterly results ever. This surge mainly occurred in the Chinese domestic market, and Huawei also launched new 5G smartphones.
Son added: "At the same time, the Indian market has maintained strong growth in the basic* smartwatch segment. India's shipments accounted for 35% of total global shipments, maintaining its position as the global market leader for the third consecutive quarter."
Apple's third-quarter shipments increased by 7% year-on-year, creating its best performance in history. This achievement is particularly noteworthy because the latest Apple Watch, a key product in its product range, was released slightly later than the previous year. Strong shipments of second-generation SE models have significantly contributed to the growth of the industry leader.
Huawei's overall shipments this quarter increased by an impressive 56% year-on-year, with shipments of HLOS smartwatches soaring by 122%. Huawei's Watch 4 and 4 Pro series released in the second quarter of 2023, as well as the Watch GT4 released in the third quarter of 2023, have received good market response. Huawei's shipment growth was driven by the return of its smartphones and the bundled sales model induced by various sales channels.
Samsung's shipments fell 19% year-on-year. However, new product launches in August were down only 3% compared to the previous month. Essentially, Samsung's decline in smartwatch shipments this quarter appears to be primarily attributable to a sharp decline in legacy models. At the same time, compared with last year's 5Pro, the proportion of Galaxy Watch 6 Classic has increased significantly, thus promoting the rise of the brand's ASP.
Fire-Boltt regains its leadership position in India after recording its highest-ever quarterly shipments. The growth rates of India's three major brands (Fire-Boltt, Noise and boAt) have all declined compared to before. However, this does not mean that growth is slowing down, but rather that it has entered a stabilizing phase.
Types of smart watches:
HLOS smart watch: An electronic watch running an advanced operating system, such as WatchOS (Apple) or WearOS (Samsung), that can install third-party applications.
Basic smartwatch: An electronic watch that runs a lower version of the operating system and cannot install third-party applications.
Research background
Counterpoint Technology Market Research is a global research company specializing in products in the TMT (technology, media and telecommunications) industry. It provides major technology and financial companies with monthly reports, custom projects, and detailed analysis of the mobile and technology markets. Its main analysts are senior experts in the high-tech industry.