India’s wearable device market declined for the first time, falling by 10 percent year-over-year to 29.5 million units in the second quarter of 2024. According to the International Data Corporation (IDC), a global market intelligence and advisory services provider, shipments in the first half of 2024 decreased by 4.7 percent, totaling 55.1 million units.
The decline is attributed to cautious inventory stocking by vendors, who focused on clearing old stock before the festive season and limited new product launches, as per the report. The average selling price (ASP) for wearables also hit a record low, declining by 10.3 percent from USD 21.0 to USD 18.8 in the second quarter of 2024, according to IDC’s tracker.
The smartwatch category continued to struggle, declining by 27.4 percent year-on-year to 9.3 million units. The share of smartwatches within wearables dropped to 31.5 percent from 39.0 percent in the second quarter of 2023. “Channel inventory, especially of previous generation models, and innovation exhaustion are restricting growth,” IDC noted.
The average selling price for smartwatches fell to USD 20.6 from USD 25.6 a year ago, due to price cuts aimed at clearing inventory and discounts offered by brands. Advanced smartwatches grew by 21.9 percent, with market share increasing from 1.5 percent to 2.5 percent.
The earwear category remained almost flat, growing by 0.7 percent year-on-year with 20.1 million units shipped. Within earwear, the Truly Wireless Stereo (TWS) segment reached a record 71.0 percent share, up from 65.5 percent a year ago, growing by 9.1 percent year-on-year. However, shipments of other earwear, including tethered and over-ear models, declined by 16.1 percent to 5.8 million units. Earwear’s average selling price decreased by 4.2 percent to USD 17.2. A new subcategory within earwear, the Open Wireless Solution/Open Ear solution, has also emerged.
Also Read: The Origin Of Iconic ‘Mercedes-Benz’ Name: CEO Reveals The Story
“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, major players remain heavily dependent on online channels,” said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India.
According to IDC, the share of the online channel increased to 63.4 percent from 62.0 percent in the first quarter of 2024, growing by 17.6 percent quarter-on-quarter. In contrast, offline channel shipments saw 11.1 percent growth quarter-on-quarter.
The smart ring category continues to grow, with more than 72,000 smart rings shipped in Q2 2024 at an average selling price of USD 204.6. IDC anticipates the launch of more affordable smart rings by established 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, stated that several new model launches by established brands are expected during the festive season, which may help mitigate the decline. “However, annual smartwatch shipments are expected to decline by 10 percent in 2024. We may also see refreshed smartwatch portfolios from smartphone vendors in the 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.
(With ANI Inputs)
