For the first time in history, India’s wearable device market witnessed a decline. Shipments dropped by 10% year-over-year to 29.5 million units in the second quarter of 2024, as reported by the International Data Corporation (IDC). This decline also affected the first half of the year, with a 4.7% decrease and 55.1 million units shipped.
Factors Driving the Decline
Several factors contributed to this downturn. Vendors adopted a cautious approach to inventory stocking, prioritizing the clearance of existing stock before the festive season. Additionally, fewer new product launches played a role in the declining numbers.
Falling Average Selling Prices
The overall average selling price (ASP) for wearables also reached a record low, falling by 10.3% to $18.8 (₹1,577) in Q2 2024.
Smartwatches Struggle
The smartwatch segment faced a significant challenge, with a 27.4% year-over-year decline to 9.3 million units. Consequently, their share within the wearables market dropped from 39% to 31.5%. Smartwatch ASP also fell to $20.6 (₹1,728) from $25.6 (₹2,147) a year ago due to price cuts and discounts aimed at clearing inventory. In contrast, advanced smartwatches saw a 21.9% growth, with their market share increasing from 1.5% to 2.5%.
Earwear Market Remains Flat
The earwear category remained relatively stable, growing by a mere 0.7% year-over-year with 20.1 million units shipped. Within this category, the Truly Wireless Stereo (TWS) segment reached a record 71% share, growing by 9.1% year-over-year. However, shipments of other earwear types, such as tethered and over-ear headphones, declined by 16.1% to 5.8 million units. The earwear ASP also decreased by 4.2% to $17.2 (₹1,443).
Smart Rings Continue Growth
In contrast to other segments, the smart ring category continued its growth trajectory. More than 72,000 smart rings were shipped in Q2 2024, with an ASP of $204.6 (₹17,166).
Future Outlook
IDC anticipates the launch of more affordable smart rings by established wearable brands during the upcoming festive season, potentially stimulating further growth in this segment. The share of the online channel also increased to 63.4%, indicating a shift in consumer purchasing behavior.
The Indian wearable market experienced its first-ever decline in Q2 2024, driven by factors such as cautious inventory management and fewer new product launches. This decline was particularly pronounced in the smartwatch segment. However, the smart ring category continued to show promise, and the upcoming festive season might bring renewed growth opportunities for the market.
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