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Low-cost watches are eating Apple and Samsung’s lunches
The wearables industry got a serious shot in the arm thanks to the arrival of one of the best smartwatches in recent memory. This is evident from four shipping figures released by market research agencies such as Counterpoint. The firm’s most recent report, covering the third quarter of 2022, shows the growth of the sector and other clothing items that make wallets lighter than full smart watches. But it seems that this increase has come at the cost of Samsung, which is less than impressive numbers for the summer.
Counterpoint’s report showed that the global market increased by 30% in Q3 2022 compared to the same period last year. More specifically, the Indian smartwatch market is seeing a 171% year-on-year growth, making it the largest market in the world. On the other hand, some important developing markets also grew in the third quarter, although none of them were China or Europe, according to the Counterpoint Global Smartwatch Model Tracker.
Adding more context to the data, analyst Woojin Son said that basic or budget smart watches were the driving force behind this increase in shipments – basic smartwatches accounted for 35% of the pie. Currently, smart watches, classified under high-performance systems by Counterpoint, have increased their shipments by 23% annually. Regardless of the income obtained by budget smartwatches, the higher average price of high-end smartwatches means that they bring more income than their lower-end counterparts.
Surprisingly, Apple’s global smartwatch shipments rose 48%, helped by the recent arrival of the Apple Watch Series 8.
Samsung also saw its shipments increase, albeit at a much lower 6%. The new Galaxy Watch 5 and the takeover of sales from the Galaxy Watch 4 series played a major role in driving growth with a 62% increase in shipments from Q2.
That said, Samsung has seen its share of India’s smartwatch market fall below 3%.
India’s Noise brand is leading the pack among smartwatch shipments in the country while maintaining third place globally. The following episodes may prove difficult for Samsung as Noise continues to close the gap with low-end consumers.
Currently, Samsung ranks second in the HLOS market with a 22.3% share, while Apple leads with 50.6%. Both have come down from previous peaks.
Another interesting anecdote from Counterpoint’s report from Garmin’s figures: the shipment of the smartwatch maker did not increase compared to Q3 2021, but the sales price was higher at $365 – better of Apple’s average – that is, its revenue grew by 11%.
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