Being the second-largest wearable market after China, India saw its wearable device market decline for the first time ever, by 10.0% year-over-year (YoY) to 29.5 million units in Q2 2024.
Analyst firm IDC reported that wearable shipments in India decreased by 4.7% in the first half of 2024, with a 10.0% year-over-year (YoY) fall in the second quarter.
Mainly, the decline was driven by the sinking popularity of smartwatches. It sank by 27.4% YoY to 9.3 million units. The share of smartwatches within wearables also dropped to 31.5% from 39.0% in Q2 2023.
The Smartwatch category includes both advanced smartwatches (e.g., Apple Watch, Wear OS watches), and basic smartwatches (e.g., Noise watches, BoAt watches). Remarkably, the sales of advanced smartwatches grew by 21.9%, with market share increasing from 1.5% to 2.5%. However, it didn’t help the decline of the category altogether.
Smartwatch average selling price (ASP) dropped to $20.6 from $25.6 a year ago due to price cuts to clear inventory of previous device models and other discounts/promotional offers by brands. ASP for the overall wearables category also hit a record low, declining by 10.3% from $21.0 to $18.8 in the quarter.
Market analysts believe the wearable decline may widen till the end of the year. Many established brand names have failed to distinguish themselves in the market and introduce innovations to existing smartwatch products.
Commenting on the smartwatch market outlook for the year, Vikas Sharma, Senior Market Analyst, Smart Wearable Devices, IDC India said, “Several new model launches by incumbent brands are expected during the upcoming festive season which may help in arresting this decline. However, the annual shipments for smartwatches are expected to decline by 10% in 2024. We will also possibly see refreshed smartwatch portfolios by the smartphone vendors at low to mid-price segments.”
Meanwhile, some wearables producers have diversified their offerings with smart glasses, earwear, smart rings, etc. The report highlights the emergence of a new wearable category within the earwear segment – OWS/OES (Open Wireless Solution/ Open Ear solution) that currently remains niche.
Wristband sales grew by 23.4% year-on-year, while the smart ring category continued to grow, with more than 72 thousand smart rings sold in Q2 2024 at an ASP of $204.6. IDC expects the launch of more affordable smart rings on the local market by incumbent wearable brands during the upcoming festive season in the next few months.
Besides, smart rings are one wearable category that keeps expanding its functionality. For instance, this July, a crypto firm Tangem presented the first hardware crypto wallet in the form of a ring. The same month, Indian tech startup Ultrahuman had its smart ring equipped with a unique function – monitoring users’ heart rhythm at night to detect signs of Atrial Fibrillation (AFib).
