Between 2019 and 2023, the growth in India’s smartwatch market shipment remained phenomenal. It was in either double or triple digit. However, the first quarter of 2024 marked a surprising downturn in this trend. For the first time since Q4 2018, there was a notable drop in demand for smartwatches in the country, resulting in a 7.3% YoY decline in shipments, totalling just 9.6 million units. The share of smartwatches within the wearables category also decreased, falling to 37.6% in Q1 2024 from 41.4% in Q1 2023, according to IDC’s latest data.
The yearly decline is even more striking when examining the performance of the top 5 smartwatch brands in India. In Q1 2023, all top 5 brands enjoyed triple-digit growth in shipments. However, in Q1 2024, the top 3 brands saw declines, while the remaining two maintained their double and triple-digit year-over-year growth.
Key Highlights: Top 5 Smartwatch Brands in India Q1 2024
The positions of India’s top three smartwatch brands remained unchanged in Q1 2024 compared to Q1 2023 and Q4 2023, with Fire-Boltt, Nexxbase (Noise), and Imagine Marketing (boAt) maintaining their leadership. However, each brand faced varying fortunes.
- Fire-Boltt smartwatch shipments in India declined a notable 24% YoY in Q1 2024, compared to an impressive 224.2% YoY growth recorded in Q1 2023. Consequently, Fire-Boltt’s market share dropped from 28.6% to 23.5% over the same period.
- The demand for Nexxbase (Noise) smartwatches slightly dropped in India, resulting in a decline of 2.1% YoY in Q1 2024. This is in sharp contrast to the 157.6% YoY growth observed in Q1 2023. Despite the decline, Noise’s market share increased to 22.8% during the last quarter, indicating a strong brand presence and customer loyalty.
- boAt has been struggling to maintain the demand for its smartwatches among Indian consumers. After experiencing 222.2% YoY shipment growth in Q1 2023, boAt’s growth slowed dramatically to 54.3% YoY in Q2 2023 and nearly flatlined with a 0.7% YoY growth in Q3 2023.
- In Q4 2023, boAt smartwatch shipments declined a notable 16.9% YoY, and this downward trend continued in Q1 2024 with a steep 61.3% YoY drop. Consequently, boAt’s market share dramatically fell from 17.5% in Q1 2023 to 7.3% in Q1 2024.
- Titan demonstrated strong performance, with an astonishing 91.7% YoY growth in smartwatch shipments in Q1 2024. As a result, its market share also more than doubled to 6.7%.
- BeatXP made significant strides by entering the top smartwatch vendor list in Q4 2023. It achieved a remarkable 232.1% YoY growth in shipments in Q1 2024, driven by aggressive online marketing strategies. As a result, BeatXP’s market share increased from 1.1% in Q1 2023 to 4.1% in Q1 2024.
Now the question arises: What caused this sudden drop in demand for smartwatches in India?
Factors Contributing to Decline
Several factors contributed to the decline in smartwatch shipments in India in Q1 2024. Firstly, there was an excess inventory in the online channels, which saturated the market and dampened new sales. Retailers had overstocked during the previous year, anticipating continued high demand, but were left with unsold units as consumer interest waned.
Secondly, there were fewer new product launches in Q1 2024. The innovation cycle slowed down, and consumers had fewer reasons to upgrade their existing devices. This stagnation in new offerings reduced the appeal of smartwatches compared to other tech gadgets vying for consumer attention.
Additionally, economic factors played a significant role. Inflationary pressures and economic uncertainty led Indian consumers to prioritize essential spending over discretionary purchases like smartwatches. Layoffs in the IT sector also contributed to reduced spending on gadgets, resulting in a notable drop in demand for smartwatches.
It is worth noting that the average selling price (ASP) of smartwatches in India dropped 29.4% YoY, to $20.65 in Q1 2024 from $29.24 a year earlier due to aggressive e-tailer sales events and discounts. Surprisingly, even this price drop did not stimulate demand as expected. Instead, it may have devalued the perception of smartwatches, making consumers skeptical about their quality and longevity.
Interestingly, despite the overall decline, the share of advanced smartwatches in India increased from 2.0% in Q1 2023 to 3.2% in Q1 2024. This suggests a growing niche market for high-end, feature-rich smartwatches, even as the broader market contracted. This trend mirrors the smartphone market scenario in India, where a similar premiumization is observed. Consumers are increasingly opting for premium models with advanced features, reflecting a shift in consumer preferences toward higher quality and more sophisticated technology, even amid economic uncertainties.
