Smartwatch Market Grows 13 Percent in 1Q22

The global smartwatch market recorded 13% more shipments compared to the same period last year, despite concerns over economic slowdown and inflation, according to Counterpoint Research. Despite a 24% slump QoQ, due to weak seasonal demand, Xiaomi performed well with its record-highest quarterly shipments.

“Although the global smartwatch market saw little growth in 2020 due to the impact of Covid-19, it has continued to perform well since its rebound last year. In particular, Apple accounted for more than a third of the total shipments last year, and it is further increasing its influence with a market share of 36% in the first quarter of this year. The high brand loyalty of iPhone users is one of the success factors of the Apple Watch. This popularity appears to be higher among the younger generation, making Apple an irreplaceable market leader. Of course, everything was possible because of the high performance of the product and the excellent connection among supported iOS devices. We believe that Apple’s market share is likely to rise further by the end of this year,“ said Sujeong Lim, Associate Director at Counterpoint Research.

Apple maintained a solid lead and increased by 14%. Some shipments carried over to 1Q22 due to a month the late launch of the Apple Watch 7, which helped continue the strength of the brand. Samsung solidified second place with a 46% increase in shipments. It grew significantly in the APAC region with the popularity of the Galaxy Watch 4 series.

Huawei remained flat in terms of shipments. Due to the weak position in the international market caused by GMS restrictions, the proportion of the Chinese market in the brand’s total shipments is gradually increasing. Xiaomi recorded its first Top 4 position with 69% growth and is breaking its shipment record every quarter as it rapidly penetrates globally. A large proportion of its sales come from the low-end segment under $100. Garmin ranked fifth in terms of shipments but came in third in terms of revenues thanks to its higher ASP. It occupies the majority portion in the premium segment over $500.

By region, while most major regions grew, only Europe recorded flat growth. Although Apple and Samsung continued to grow year-over-year, other major brands such as Garmin and Fitbit performed weakly in the European market during this period. “We initially expected the war between Russia and Ukraine to have minimal impact on the market in Q1, but the prolongation of the conflict and the resulting logistical constraints have begun to affect the European region. The impact of the war will become more serious in Q2,“ added Lim.