NEW DELHI: India's wearable device market experienced a 10.0 per cent year-over-year (YoY) decline, shipping 29.5 million units in the second quarter of 2024, according to a report by IDC (International Data Corporation).
The average selling price (ASP) for wearables also reached a record low, falling by 10.3 per cent from USD21.00 to USD18.80 in 2Q24. For the first half of 2024, shipments decreased by 4.7 per cent, totaling 55.1 million units.
The report attributes this decline to cautious inventory management by vendors, who focused on clearing old stock before the festive season, and fewer new product launches.
In terms of categories, smartwatches continued to struggle, with a 27.4 per cent YoY decline to 9.3 million units. The share of smartwatches within the overall wearables market dropped to 31.5 per cent from 39.0 per cent in 2Q23.
According to IDC, factors such as channel inventory of previous-generation models and innovation exhaustion have limited growth. The average selling price of smartwatches also decreased from USD25.60 to USD20.60 over the past year due to price cuts and discounts. Advanced smartwatches, however, saw growth of 21.9 per cent, with their market share increasing from 1.5 per cent to 2.5 per cent. In the earwear category, growth was modest at 0.7 per cent YoY, with 20.1 million units shipped.
The Truly Wireless Stereo (TWS) segment within earwear reached a record 71.0 per cent market share, up from 65.5 per cent a year ago, growing by 9.1 per cent YoY.
“The offline channel remains underutilized, often serving merely as a means for brands to offload excess inventory. Due to cost pressures, many brands are shifting their focus toward e-tailer channels, particularly during festive periods. While several smaller brands rely on offline channels, the major players remain heavily dependent on online channel,” said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India.
The share of the online channel increased to 63.4 per cent from 62.0 per cent in 1Q24, marking a 17.6 per cent quarter-over-quarter (QoQ) growth, while offline channel shipments grew by 11.1 per cent QoQ.
In the smart ring category, shipments continued to grow, with over 72,000 smart rings shipped in 2Q24 at an ASP of USD204.60. Ultrahuman led the market with a 48.4 per cent share, followed by Pi Ring with 27.5 per cent, and Aabo with a 10.5 per cent share.
IDC anticipates that more affordable smart rings will be launched by established wearable brands during the upcoming festive season in the next few months.