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Published Jan 23, 2025
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Budget smartwatches are now facing a sales decline, as consumer interest wanes. The Indian wearable market dropped 20.7% YoY in Q3 2024, continuing a trend of falling shipments. A total of 38 million units were shipped, but for the first time since 2019, the average selling price (ASP) rose by 1.3%, reaching $21.1. This article will discuss everything about the new reports about the budget smartwatch sales in more detail.
IDC attributes the downturn to fewer new product launches and cautious inventory strategies, even during festive sales. Despite this, brands like Boult and Realme saw growth, with 32.5% and 56.5% increases, respectively. Noise continued to lead the smartwatch category, while BoAt cleared out older stock. Nothing experienced a remarkable 308.2% YoY growth across wearables.
Smartwatch shipments specifically declined 44.9% YoY, down to 9.3 million units. Discounting strategies during festive sales helped brands clear inventory, but even advanced smartwatches, like the Apple Watch, saw a 39.9% YoY decline. The smartwatch market is under pressure, primarily due to undifferentiated products, with analysts predicting the market will remain flat or see a slight decline in 2025. However, early signs show a shift towards advanced smartwatches, driven by demand for better health tracking.
Budget Smartwatch Sales Decline
IDC Report in India
Rise of Smart Rings and Other Wearables
On the other hand, the smart ring market continues to grow, with shipments increasing to over 91,000 in Q3 2024. Prices have dropped 16.2% YoY, and new products are expected in the coming quarters.Global Smartwatch Market Overview
The global smartwatch market showed a slight 1% YoY decline, with 139 million units shipped in the first three quarters of 2024. Huawei has emerged as a dominant player, surpassing Apple in cumulative shipments, thanks to strong growth in regions like Asia-Pacific and Latin America. Apple briefly regained the top spot in Q3 2024 with its Series 10, but faces mounting competition from Chinese brands offering more budget-friendly options.- Also, read
Competitive Pressure from Xiaomi and Samsung
The rise of Xiaomi and Samsung also signals a shift toward mid-range devices, with improved health tracking and battery life becoming key selling points. Meanwhile, Apple remains focused on the premium segment, though it will need to innovate to stay ahead of the competition.Reasons for the Decline
The decline in budget smartwatches can be attributed to several factors. Many smartwatches still offer inaccurate health and fitness tracking, with no significant innovation in the category. Basic models often fail to offer the comprehensive tracking features of more expensive devices, such as sleep improvement suggestions or exercise recommendations. Additionally, the rise of smart rings and the continued popularity of analog watches, which now offer basic fitness tracking, further weaken the case for budget smartwatches.Opinion: The Future of Smartwatches
In my opinion, smartwatches might eventually become obsolete in some form or another. Despite their popularity, many tech enthusiasts are starting to abandon them. Features like the sleep tracker are often inaccurate, and the idea of tracking "deep sleep" with simple sensors is unrealistic. Accurate results can only be achieved with advanced technology like polysomnography (PSG), which measures brain activity. As technology advances, people will likely return to regular analog watches as they rather have the most extraordinary charm than any other smartwatches in existence. For example, an analog watch that comes under 10k will catch more eyes than a smartwatch that might go beyond 20k. And as even earbuds like my Liberty 4 offers heart rate monitoring, and companies like Sennheiser are adding temperature sensors. With the possibility of eSIMs in earbuds, the need for smartwatches may continue to diminish.- Meanwhile, check out our review of the OnePlus 13R
Article Last updated: January 23, 2025
