Smartwatch Shipments Plunge 44.8% in India: IDC Report Wristbands faced the sharpest drop among all categories, declining by a significant 48.4 p[er cent year-over-year (YoY). Shipments plummeted to just 56.1 thousand units, compared to 108.8 thousand units in Q3 2023. Smartwatches also struggled, experiencing a 44.8 per cent YoY decline in shipments, which fell to 9.3 million units.

The Indian wearable device market experienced a sharp decline for the second consecutive quarter, according to International Data Corporation's (IDC) India Monthly Wearable Device Tracker. In Q3 2024, total wearable shipments fell 20.7 per cent year-over-year (YoY) to 38 million units, reflecting the challenges faced by the sector. Reduced new product launches and a cautious inventory strategy during the festive season contributed to this downturn. Notably, the average selling price (ASP) for wearables rose by 1.3 per cent to $21.3 for the first time since Q2 2019, signalling shifts in market dynamics.

Smartwatches faced the steepest decline, with shipments dropping 44.8 per cent YoY to 9.3 million units. This drop was fueled by brands focusing on clearing older inventory through heavy discounts, particularly on e-commerce platforms. Despite the drop in volume, ASPs for smartwatches rose slightly by 1.4 per cent, from $25.8 to $26.2. Advanced smartwatches, which offer premium features, also declined by 39.9 per cent YoY. However, their market share inched up from 2.4 per cent to 2.6 per cent, indicating growing consumer interest in higher-end devices.

Long-tail smartwatch brands, including white box shipments, saw a dramatic 59.1 per cent drop in shipments following a surge of 328.8 per cent YoY in Q3 2023. Anand Priya Singh, market analyst for Smart Wearable Devices at IDC India, noted, "The tapering demand for smartwatches in 2024 led to a sudden drop in the share of these long-tail brands, significantly impacting festive shipments."

Earwear

The earwear segment declined 7.5 per cent YoY to 28.5 million units in Q3 2024, but within this category, Truly Wireless Stereo (TWS) devices continued to dominate, reaching a record market share of 73.2 per cent. Shipments of TWS devices dipped slightly by 0.7 per cent YoY, while other earwear types, such as tethered and over-ear products, fell by 22 per cent to 7.6 million units. Meanwhile, the ASP for earwear grew 5.9 per cent, reaching $19.2, reflecting growing consumer preference for higher-quality devices.

Offline channels for earwear performed well, with shipments increasing by 9.4 per cent YoY and their market share rising from 29.1 per cent to 34.4 per cent. In contrast, online sales dropped 14.4 per cent YoY, a notable shift in the distribution landscape.

Emerging Players

Despite the challenging environment, some brands managed to thrive. Noise (Nexxbase) maintained its lead in the smartwatch segment, while Boult and Realme emerged as standout performers, registering growth of 32.5 per cent and 56.5 per cent YoY, respectively. In the TWS category, Boult and Realme achieved remarkable growth of 55 per cent and 94.6 per cent YoY, respectively. Meanwhile, smartphone brand Nothing recorded an astounding 308.2 per cent YoY growth in the overall wearable market, underlining its rising influence.

One bright spot in the wearable market was the growth of smart rings. Over 92,000 units were shipped in Q3 2024, driven by increasing consumer interest and a 16.2 per cent reduction in ASP to $162.1. Ultrahuman led this niche category with a 36.8 per cent market share, followed by boAt at 20.5 per cent and Pi Ring at 16.3 per cent. The declining ASP and anticipation of new launches suggest that smart rings are poised to capture more attention in upcoming quarters.

Vikas Sharma, senior market analyst for Smart Wearable Devices at IDC India, said, "The smartwatch category remains stressed as we head into r 2025 due to undifferentiated products and a limited number of brands in play. Its market is expected to remain flat or decline marginally in 2025. However, we are seeing early signs of a gradual consumer shift from basic to advanced smartwatches, as the need for better health tracking with efficient sensors and advanced functionality is gradually coming to the fore."