New Delhi, August 8
India's wearable device market declined for the first time, by 10 per cent year-over-year to 29.5 million units in the quarter of 2024.
According to International Data Corporation (IDC), a global market intelligence and advisory services provider, shipping in the first half of 2024 declined by 4.7 per cent, shipping 55.1 million units.
Cautious inventory stocking by the vendors with a focus on clearing the old stock before the festive season begins and fewer new launches were the key reasons for this decline, as per the report.
The average selling price (ASP) for the overall wearables also hit a record low, declining by 10.3 per cent from USD 21.0 to USD 18.8 in the second quarter of 2024, the tracker maintained by IDC showed.
The smartwatch category continued to struggle, declining by 27.4 per cent year-on-year to 9.3 million units. The share of smartwatches within wearables dropped to 31.5 per cent from 39.0 per cent in second quarter of 2023.
"Channel inventory, especially of previous generation models, and innovation exhaustion are restricting growth," the IDC said.
Smartwatch average selling price dropped to USD 20.6 from USD 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, the tracker said.
The earwear category remained almost flat, growing by 0.7 per cent year-on-year with 20.1 million units shipping.
Within earwear, the share of the Truly Wireless Stereo (TWS) segment reached a record 71.0 per cent from 65.5 per cent a year ago, growing by 9.1 per cent year-on-year.
Earwear others, which includes tethered and over ear, shipments declined by 16.1 per cent with 5.8 million units. Earwear's average selling price declined by 4.2 per cent to USD 17.2.
Also, a new subcategory within the earwear segment emerged, namely (Open Wireless Solution/ Open Ear solution).
"The offline channel remains underutilized, 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 channels," said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India.
As per IDC, the share of the online channel increased to 63.4 per cent from 62.0 per cent in the first quarter of 2024, growing by 17.6 per cent quarter-on-quarter. While offline channel shipments witnessed 11.1 per cent growth quarter-on-quarter.
The smart ring category continues to grow, with more than 72 thousand smart rings shipped in 2Q24 at an average selling price of USD 204.6. IDC expects the launch of more affordable smart rings by incumbent wearable brands during the upcoming festive season in the next few months.
Commenting on the smartwatch market outlook for the year, Vikas Sharma, Senior Market Analyst, Smart Wearable Devices, IDC India says 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," Sharma added.
International Data Corporation (IDC) is a global provider of market intelligence, advisory services, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries.