The latest survey of global smartwatch shipments in 2022 by Counterpoint Research reveals that Apple Watch dominated the market with incredible growth in spite of a 2% YoY drop in Q4, 2022. It also drove the average selling price (ASP) in the global smartwatch market in 2022, especially in the>$400 price band.
Apple has dominated the global smartwatch market throughout 2022:
- In Q1, 2022 it captured a 36.1% market share.
- In Q2, 2022 it captured a 29.3% market share.
- In Q3, 2022 it captured a 50.6% market share.
Diverse Apple Watch lineup drove the growth of ASP in the global smartwatch market in 2022
In September 2022, the Cupertino tech giant launched Apple Watch Series 8, Apple SE (second-generation), and its first-generation premium model Apple Watch Ultra. Apple’s diverse smartwatch lineup attracted consumers to opt for premium models. Research Analyst Woojin Son said:
“Apple strongly drove the average selling price (ASP) rise in the global smartwatch market in 2022, especially in the >$400 price band. There are two main reasons for this ASP rise – a diversified Apple smartwatch line-up and a rise in the exchange rate. This year, Apple released its first premium model, Ultra, at a release price of $799 in the US. In addition, as the exchange rate rose, the local price of Apple Watch in various countries changed. The demand for the premium segment remained relatively strong despite the decline in consumer sentiment at the end of 2022.
To summarise Apple’s market in 2022, its shipments saw a 17% YoY increase driven by strong sales of the Apple Watch Series 8, Apple Watch SE 2, and Apple Watch Ultra. And for the first time, Apple’s smartwatch shipments increase by 50 million capturing a 60% share of the global smartwatch market revenue.
Apple Watch clones suffered a significant decline in Q4, 2022
However, the fourth quarter of 2022 did not bear good news for Apple Watch clones by Indian manufacturers like Noise, Fire-Boltt, Helix India, and others.
Heavily promoted by Indian celebrities, the low to mid-range Apple Watch clones in India like the ColorFit series by Noise and Ninja series by Fire-Boltt sale strong sales in the first half of 2022.
India became the second-largest smartwatch market for the first time in Q2, 2022. The Indian market saw 300% Y-o-Y growth driven by the strong growth of local brands like Noise and Fire-Boltt who sell Apple Watch clones at the fraction of its price.
However, the demand for the sub-$100 band depreciated in Q4, 2022. Although the Indian market more than doubled compared to 2021, It grew steadily until Q3 2022 but fell 36% QoQ in Q4. Son added:
On the other hand, we must be cautious about the low-price band of sub-$100. While this segment expanded in 2022 along with the remarkable growth of India’s market, it showed a large withdrawal in Q4 when compared to Q3.