According to a report by International Data Corporation (IDC), India’s wearable device market declined for the first time ever, by 10 per cent year-over-year (YoY) to 29.5 million units in the second quart (Q2) of 2024. The first half (H1) of 2024 declined by 4.7 per cent, shipping 55.1 million units.
The average selling price (ASP) for the overall wearables also hit a record low, declining by 10.3 per cent from $21.0 to $18.8 in Q2 2024.
As per the report, Smartwatch category continued to struggle, declining by 27.4 per cent year (YoY) to 9.3 million units. The share of smartwatches within wearables dropped to 31.5 per cent from 39 per cent in 2Q23. Channel inventory, especially of previous generation models, and innovation exhaustion are restricting growth. Smartwatch ASP dropped to $20.6 from $25.6 a year ago due to price cuts to clear inventory and discounts/offers by brands, advanced smartwatches grew by 21.9 per cent, with market share increasing from 1.5 per cent to 2.5 per cent.
Meanwhile, earwear category remained flat, growing by 0.7 per cent YoY with 20.1 million units. Within earwear, the share of truly wireless stereo (TWS) segment reached a record 71 per cent from 65.5 per cent a year ago, growing by 9.1 per cent YoY. Earwear others (which includes tethered and over ear) shipments declined by 16.1 per cent with 5.8 million units. Earwear ASP declined by 4.2 per cent to $17.2.
The report mentioned that a new subcategory within the earwear segment has emerged, namely open wireless solution/ open ear solution (OWS/OES). Currently, a niche segment, with vendors like PTron (Palred), Truke (Eccentric Enterprises), and Noise (Nexxbase), have launched models in the affordable price segment, with Bose at the premium end.
Commenting on the report, Anand Priya Singh, market analyst, smart wearable devices, IDC India, said, “The offline channel remains underutilised, 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.”
It added that the share of the online channel increased to 63.4 per cent from 62 per cent in Q1 2024, growing by 17.6 per cent quarter-over-quarter (QoQ). While offline channel shipments witnessed 11.1 per cent growth QoQ.
As per the report, smart ring category continues to grow, with more than 72,000 smart rings shipment in Q2 2024 at an ASP of $204.6. Ultrahuman led with a 48.4 per cent share, followed by Pi Ring at 27.5 per cent and Aabo at third with a 10.5 per cent share. IDC expects the launch of more affordable smart rings by incumbent wearable brands during the upcoming festive season in the next few months.
Meanwhile, 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 per cent in 2024. We will also possibly see refreshed smartwatch portfolios by the smartphone vendors at low to mid-price segments.”
