Global Smartwatch Market Rebounds in 3Q23

Global smartwatch shipments increased 9% YoY in the third quarter of 2023, according to Counterpoint Research. After experiencing a slowdown earlier this year, the smartwatch market regained momentum in 2Q23 and continued the positive trend in Q3 as well. The primary drivers of this growth were the sustained strong performance of the Indian market led by Fire-Boltt, as well as Huawei’s tremendous rebound in China.

“There is significant value in examining the growth drivers of the global smartwatch market in Q3 2023. Amid a global economic slowdown, most consumer device markets like smartphones are still experiencing stagnation compared to a year ago. In contrast, the smartwatch market has recorded YoY growth for two consecutive quarters in both premium and budget segments,” said Woojin Son, Research Analyst at Counterpoint Research.

“Notably, High-level Operating System (HLOS) smartwatches, typically featuring higher specification and price, have grown largely driven by Huawei in Q3 2023 as the company posted its highest quarterly performance ever. Most of this surge occurred in the Chinese domestic market, coupled with the launch of new Huawei 5G smartphones. Meanwhile, the Indian market, which has been powerfully leading the Basic smartwatch sector, maintained robust growth in the quarter. The country contributed to 35% of total global shipments, securing its position as the leader in the global market for the third consecutive quarter,” added Son.

Apple delivered its best-ever Q3 performance, with a 7% YoY increase in shipments. This achievement is particularly noteworthy given that the latest Apple Watch, a key product in their lineup, was released slightly later than the previous year. The strong shipments of the 2nd-generation SE model significantly contributed to the growth of the industry leader.

Huawei witnessed an impressive 56% increase in overall shipments for the quarter, with HLOS smartwatches seeing a remarkable 122% surge. Samsung experienced a 19% decline in shipments. However, the new products released in August exhibited only a 3% drop compared to the previous ones. Fire-Boltt reclaimed its leadership position in India after recording its all-time highest quarterly shipments. All three major Indian brands — Fire-Boltt, Noise, and boAt — are experiencing a slower growth rate than before. However, this is interpreted not as a sign of sluggishness, but rather as an indication of entering a phase of stabilization.