According to data released by the data company (IDC), in the second quarter of 2024, India's wearable device shipments fell by 10.0% year-on-year to a total of 29.5 million units.
Among the segments, the smartwatch category suffered the hardest hit, falling 27.4% year-over-year, with shipments falling to 9.3 million units. The share of smartwatches in wearables decreased to 31.5% from 39.0% in the second quarter of 2023. Industry insiders said channel inventory, especially of older models, and the depletion of innovation were limiting growth. The average selling price (ASP) of a smartwatch has also dropped to $20.6 from $25.6 a year ago, due to price cuts to clear inventory and brand discounts/offers.
On the other hand, the hearables market was largely flat, up 0.7% year-on-year, with shipments reaching 20.1 million units. Among hearables, true wireless stereo (TWS) market share reached a record 71.0%, up 9.1% year-over-year. Shipments of other types of hearables, including wired and headsets, fell 16.1% to 5.8 million units. The average selling price of hearables decreased by 4.2% to $17.2.
Figure: India smart wearable device shipments
According to IDC's report, the India wearables market shipped 55.1 million units in the first half of 2024, but fell by 4.7% year-on-year. The second quarter became a concentrated reflection of the market decline, with shipments falling to 29.5 million units, a year-on-year decline of 10%. Among them, smart watches, as an important part of the market, suffered a 27.4% plunge in shipments, from nearly 12.8 million units in the same period last year to 9.3 million units.
IDC conducted an in-depth analysis of the reasons for this market decline. First of all, the cautious attitude of suppliers in sales strategies has become an important factor affecting the market. In order to clear old inventory in antip of the upcoming holiday promotion, suppliers have reduced the launch of new products, resulting in a lack of new products in the market that will appeal to consumers. Secondly, changes in market demand are also factors that cannot be ignored. With the gradual saturation of the market, consumers' demand for wearable devices is becoming more and more intense, but the lack of innovative and attractive products in the market makes it difficult to meet consumer expectations. In addition, innovation fatigue in the smartwatch market is also one of the important reasons for the decline in shipments.
As the world's second-largest wearable device market, India's shipment decline has undoubtedly had a profound impact on the entire industry. Market analysts generally believe that this downward trend could extend further if no effective response can be taken in the coming quarters. However, the report also reveals some positive information. Sales of premium smartwatches have increased and market share has increased, indicating that there is still a certain demand for high-quality, high-performance wearables.
