India is the second-largest wearable market after China. At instances, it has additionally been the biggest smartwatch market. However, in Q2, wearable shipments within the nation declined 10% year-on-year to 29.5 million models. The first half of the 12 months, in the meantime, fell 4.7% to 55.1 million models, analyst agency IDC reported this week.
Market analysts imagine this decline might widen over the approaching quarters, they usually place the blame firmly on smartwatches.
According to the survey, smartwatch shipments in India declined by 27.4% YoY to 9.3 million models in Q2, down from almost 12.8 million. Counterpoint individually confirmed to TechCrunch that based on its evaluation, the Indian smartwatch market dipped by as a lot as 30% YoY.
Earlier this 12 months, TechCrunch reported that Indian smartwatch gamers confronted stress from the sudden rise of unknown manufacturers. Established names, in the meantime, have failed to differentiate themselves out there. Some have begun diversifying into different segments, together with sensible rings, for income.
IDC reported the share of smartwatches within the total wearable market dropped to 31.5% from 39% a 12 months prior.
“Innovation fatigue or {hardware} exhaustion is the prime purpose why the smartwatch market in India is declining,” Vikas Sharma, IDC’s senior market analyst for sensible wearable units, informed TechCrunch. “Most native manufacturers are launching fashions with none new options.”
The prime three gamers within the Indian smartwatch market are all home manufacturers: Noise, Fire-Boltt and boAt. All noticed a big dip in Q2. The common promoting worth of smartwatches in India additionally declined to $20.6 from $25.6 a 12 months in the past as manufacturers have reduce costs to clear inventories.
But worth cuts have failed to draw clients.
“Consumers should not warming as much as shopping for a brand new smartwatch or changing an current one as a result of low differentiation when it comes to options and restricted innovation out there,” Anshika Jain, a senior analyst at Counterpoint, informed TechCrunch.
Jain added that smartwatches’ attraction primarily drove their hyper-growth in India over the previous few years. However, she famous that this development section is now cooling down because the preliminary pleasure of the section is really fizzling out.
“This can also be mirrored within the dwindling development charges and a bleak outlook,” the analyst stated.
Unlike less complicated fashions, superior smartwatches (which have an app retailer and run a full-fledged working system), noticed a rise of 21.9%, with their market share rising to 2.5% from 1.5%, IDC experiences.
However, the agency confirmed to TechCrunch that Apple and Samsung noticed a decline of their quarterly shipments of round 29% and 26% of their respective market shares.
Apple captured 0.5% of the general smartwatch market in India by delivery round 35,000-40,000 Apple Watch models in Q2, whereas Samsung had a 0.9% share with 75,000-80,000 models shipped throughout the quarter, the agency stated.
Sharma stated that the market share dip for Apple and Samsung was cyclical.
“Samsung launched new watches on the finish of Q2 together with no bundle supply; additionally, because of on-line gross sales, individuals normally watch for offers to return on increased worth watches. For a while, Samsung had stopped the bundle supply [that used to cost its smartwatches to customers at around $36 when purchasing with a flagship smartphone],” he said.
The analyst additionally famous that the Apple Watch lineup is due for an replace, so the corporate has largely targeted on clearing out outdated inventory.
The total superior smartwatch section noticed a rise in its share as some Indian firms launched new fashions operating Android OS. That’s full Android — not Wear OS — together with the Play Store. Some firms seek advice from the units as “WristPhones,” as they arrive with a nano SIM card slot and have voice calling help.
Nevertheless, IDC forecasts the nation’s annual smartwatch shipments declining by 10%. Similarly, Counterpoint believes India’s smartwatch will witness a double-digit proportion drop this 12 months.
Headphone shipments flatten
Alongside smartwatch decline, headphones numbers remained flat in India, per IDC, with 20.1 million models shipped in Q2. That represents 0.7% YoY development. The true wi-fi stereo (TWS) section grew 9.1% YoY to a share of 71% from 65.5% a 12 months in the past. However, tethered (or neckband-styled) and over-ear headphones — which IDC lumps collectively — declined by 16.1% to five.8 million models.
Domestic manufacturers proceed to dominate the section in India, adopted by Chinese smartphone distributors Oppo and its sub-brand Realme. Apple (and its subsidiary Beats) and Samsung (together with sub-brands JBL, Infinity and Harman), in the meantime, accounted for 0.9% and a pair of.3% of complete headphone shipments.
Sharma of IDC informed TechCrunch that the dip within the headphone section is short-term, as demand for TWS earbuds nonetheless exists.
India additionally receives a big variety of non-branded earbuds, which can be found on-line and in shops. IDC doesn’t observe these models, nonetheless.
“Q3 can be very massive [for headphones] in comparison with Q2,” Sharma stated. In distinction, smartwatches should not more likely to see development till not less than 2026, based on Jain.
“In 2026 and past, we anticipate the market to get well, pushed by newer use circumstances in smartwatches,” she stated.
