India’s smartwatch shipments grew 21% year-on-year in the July-September quarter of 2023, according to the latest research from Counterpoint’s IoT Service. The growth was driven by high inventory build-up for the festive season sales in October.
Even as established players continued to drive the market, new entrants such as Fastrack and beatXP shipped high volumes and chipped away market share from the top three.
The share of domestic manufacturing reached the highest ever at 82%, compared with just 4% a year ago, according to Counterpoint. The Counterpoint research also revealed that the average selling price (ASP) of India’s smartwatch declined 41% year-on-year to reach its lowest-ever level due to continuous push towards budget offerings. As a result, the report says, over three-fifths of the market now comes under the Rs 2,000 price band.
This quarter, smartwatches were even available for less than Rs 1,000 to target first-time users. The shorter replacement cycles for the basic smartwatches and the maximum number of new launches being in this price segment further accelerated the trend. According to Counterpoint’s senior research analyst Anshika Jain, market reached its highest quarterly shipments in Q3 2023 due to strong festive planning by brands, new launches, and entry of new players.
“In this quarter, we saw features like larger screens and OLED displays further trickling down to the lower price bands. As a result, in the Rs 2,000- 3,000 price band, contribution of >1.9-inch smartwatches stood at 21%, while over half of devices were available with OLED displays. In the coming years, the market will continue to grow in double digits due to the brands’ efforts to expand their portfolios, offline partnerships with several large-format retailers (LFRs) and growing emphasis on local manufacturing,” she added.
Market summary
Fire-Boltt led the market with a 28% share and sported the widest portfolio. It also had the lowest ASP among the top three players, further driving the shipment volume. The Phoenix, Hunter, Ninja Pro Max, Ninja Calling Pro Plus, and Ninja Call Pro models drove the market share.
Noise captured the second spot with a 24% share. The Colorfit Icon 2 was its best-selling model for the quarter. Online channels contributed 79% to its shipments.
On a year-on-basis, boAt shipments slightly grew. Almost all boAt models are being assembled locally. The brand refreshed several popular models like the Storm Call 2 and Wave Call 2, which were also its bestsellers for the quarter.
Fastrack, a sub-brand of Titan, an existing giant in traditional watches, captured the fourth spot with an 8% market share. It enjoys an existing brand value, streamlined offline distribution and accessible pricing, facilitating faster growth.
After registering a four-fold quarter-on-quarter growth in Q3 2023, beatXP entered the top five for the first time. This fitness-oriented sub-brand is a product of healthcare startup Pristyn Care, which entered the smartwatch market in Q4 2022. It has more products lined up for the coming quarters and is expected to gain more market share due to its lower ASP.
Boult grew 251% after entering the offline channel in Q3. The brand has partnered with several LFRs, like Sangeetha Mobiles and Poorvika Mobiles, for better in-store experience and expansion. Corporate sales also remain sizeable for the brand.
Samsung refreshed its portfolio with sixth-generation smartwatches getting assembled locally. The Galaxy Watch 4 series continues to be Samsung’s bestseller, contributing to 35% of its shipments, primarily due to its comparatively low price. The brand led the `10,000- 20,000 price band with a 65% share.
Apple shipments declined 52% as its new series became available in late September and without a refresh to the Watch SE 2022. The brand remains the market leader in the under `20,000 retail price band.
Around 98% of the smartwatches run on a lighter OS version while the remaining run on a High-Level OS (HLOS), like Wear OS and Watch OS.