India’s Wearable Market is on the Brink of Collapse
In a shocking turn of events, India’s wearable market has seen a massive decline in Q2, with smartwatches taking the biggest hit. According to a report by IDC, wearable shipments in India fell 10% year-on-year to 29.5 million units, while smartwatch shipments plummeted by 27.4% to 9.3 million units.
The decline is attributed to a lack of innovation and differentiation in the smartwatch market, with many local brands launching models without new features. The top three players in the Indian smartwatch market – Noise, Fire-Boltt, and boAt – all saw a significant dip in Q2, with the average selling price of smartwatches declining to $20.6 from $25.6 a year ago.
Consumers are not warming up to buying new smartwatches or replacing existing ones due to the lack of excitement and innovation in the market. Analysts predict that the decline will continue, with IDC forecasting a 10% decline in annual smartwatch shipments.
Headphone Shipments Flat
While smartwatches are struggling, headphones have seen a flat performance in India. According to IDC, headphone shipments remained steady at 20.1 million units in Q2, with the true wireless stereo (TWS) segment growing 9.1% YoY to a share of 71%. However, tethered and over-ear headphones declined by 16.1%.
Domestic brands continue to dominate the headphone segment, followed by Chinese smartphone vendors Oppo and Realme. Apple and Samsung accounted for a mere 0.9% and 2.3% of total headphone shipments, respectively.
What’s Next?
Analysts predict that the smartwatch market will continue to decline until at least 2026, driven by newer use-cases in smartwatches. However, headphones are expected to recover in Q3, driven by demand for TWS earbuds.
The decline of the smartwatch market is a stark reminder of the importance of innovation and differentiation in the tech industry. As consumers become increasingly demanding, companies must adapt and innovate to stay ahead of the competition.
The Future of Wearables
The future of wearables in India is uncertain, but one thing is clear: the market will continue to evolve and change. As new technologies emerge and consumer preferences shift, companies must be prepared to adapt and innovate to stay relevant.
Will the smartwatch market recover in the future? Only time will tell. One thing is certain, however: the wearable market in India is on the brink of collapse, and it’s up to companies to innovate and adapt to stay ahead of the competition.
