India is the second largest wearable market after China. At instances, it’s also the biggest smartwatch market. Nonetheless, within the second quarter, the nation’s wearable machine shipments fell 10% year-on-year to 29.5 million items. In the meantime, analyst agency IDC reported this week that gross sales fell 4.7% to 55.1 million items within the first half of this yr.
Market analysts imagine this downward pattern might broaden within the coming quarters, they usually blame smartwatches.
The survey confirmed that India’s good watch shipments fell 27.4% year-on-year to 9.3 million items within the second quarter, down from almost 12.8 million items. Counterpoint additionally confirmed to TechCrunch that based on its evaluation, the Indian good watch market has declined by as a lot as 30% in contrast with the identical interval final yr.
Earlier this yr, TechCrunch reported that Indian smartwatch producers have been dealing with strain from the sudden rise of unknown manufacturers. On the identical time, well-known manufacturers fail to face out out there. Some corporations have begun diversifying into different areas, together with good rings, to generate income.
IDC reported that smartwatches’ share of your entire wearable market fell to 31.5% from 39% a yr in the past.
“Innovation fatigue or {hardware} exhaustion is the principle cause for the decline of the Indian good watch market,” Vikas Sharma, senior market analyst for good wearables at IDC, instructed TechCrunch. “Most native manufacturers launched fashions with none new options.”
The highest three gamers within the Indian smartwatch market are all home manufacturers: Noise, Fireplace-Boltt and boAt. All noticed vital declines within the second quarter. As manufacturers lower costs to clear stock, the common promoting value of good watches in India additionally dropped to US$20.6 from US$25.6 a yr in the past.
However the value cuts failed to draw prospects.
“Shoppers aren’t eager on shopping for new smartwatches or changing current smartwatches as a result of low function differentiation and restricted innovation out there,” Anshika Jain, senior analyst at Counterpoint, instructed TechCrunch.
Jain added that the enchantment of smartwatches has largely pushed their fast progress in India over the previous few years. Nonetheless, she famous that this progress part is now cooling because the preliminary pleasure across the phase has waned.
“That is additionally mirrored in decrease progress charges and a bleak outlook,” the analyst stated.
IDC studies that, in contrast to easier fashions, premium smartwatches (these with app shops and operating mature working methods) grew 21.9%, rising their market share from 1.5% to 2.5%.
Nonetheless, the corporate confirmed to TechCrunch that Apple and Samsung’s quarterly shipments noticed their respective market shares decline by roughly 29% and 26%.
The corporate stated Apple shipped about 35,000-40,000 Apple Watch items within the second quarter, accounting for 0.5% of India’s general smartwatch market, whereas Samsung accounted for 0.9% with shipments of 75,000-80,000 items. share.
Sharma stated Apple and Samsung’s decline in market share is cyclical.
“Samsung launched new watches on the finish of the second quarter, however with out bundling; as well as, folks often await reductions on higher-priced watches as a result of on-line gross sales. Samsung has stopped bundling for a while [that used to cost its smartwatches to customers at around $36 when purchasing with a flagship smartphone],” he stated.
The analyst additionally identified that the Apple Watch product line is about to be refreshed, so the corporate is principally targeted on clearing out outdated stock.
The share of the general premium smartwatch market is rising as some Indian corporations launch new fashions operating Android working system. That is full Android (not Put on OS) and the Play Retailer. Some corporations name these units “WristPhones” as a result of they function Nano SIM card slots and help voice calls.
Regardless of this, IDC predicts a ten% decline in annual smartwatch shipments within the nation. Equally, Counterpoint believes that smartwatches in India will see a double-digit proportion decline this yr.
Headphone shipments stay flat
Along with a decline in smartwatch gross sales, headphone gross sales in India remained flat, with 20.1 million items shipped within the second quarter, based on IDC. This represents a year-over-year improve of 0.7%. The true wi-fi stereo (TWS) phase grew 9.1% year-over-year, taking its share to 71% from 65.5% a yr in the past. Nonetheless, tethered (or neckband) headphones and over-the-ear headphones (which IDC combines) fell 16.1% to five.8 million items.
Home manufacturers proceed to dominate the Indian market, adopted by Chinese language smartphone maker Oppo and its sub-brand Realme. In the meantime, Apple (and its subsidiary Beats) and Samsung (together with sub-brands JBL, Infinity and Harman) accounted for 0.9% and a couple of.3% of complete headphone shipments respectively.
IDC’s Sharma instructed TechCrunch that the decline within the headphone market is momentary, as demand for TWS earbuds stays.
India additionally receives a lot of off-brand headphones, which can be found on-line and in shops. Nonetheless, IDC doesn’t monitor these items.
“Season 3 goes to be large. [for headphones] In comparison with season two,” Sharma stated. Compared, good watches will not develop till no less than 2026, Jain stated.
“In 2026 and past, we count on the market to recuperate pushed by new use instances for good watches,” she stated.
