Decline in Indian Smartwatch Market Points to Innovation Fatigue
The Indian smartwatch market is experiencing a decline in shipments, with a 27.4% year-on-year drop in Q2, according to a survey by analyst firm IDC. The decline is attributed to innovation fatigue and lack of new features in smartwatches. Local brands are launching models without any significant advancements, leading to low differentiation and limited consumer interest.
The top three players in the Indian smartwatch market, Noise, Fire-Boltt, and boAt, all saw a significant dip in Q2. Despite price cuts to clear inventories, consumers are not attracted to buying new smartwatches or replacing existing ones due to the lack of innovative features. The initial excitement around smartwatches in India is tapering off, leading to dwindling growth rates and a bleak outlook for the market.
However, advanced smartwatches with full-fledged operating systems and app stores saw a 21.9% increase in shipments, indicating a higher demand for more feature-rich devices. Apple and Samsung, on the other hand, experienced declines in their quarterly shipments, with a 29% and 26% drop in market shares, respectively. The decline for these companies is seen as cyclical, with Samsung introducing new watches without bundle offers and Apple focusing on clearing out old stock before an upcoming update to their Apple Watch lineup.
Looking ahead, IDC forecasts a 10% decline in annual smartwatch shipments in India, while Counterpoint predicts a double-digit percentage drop this year. In contrast, the headphone market in India remained flat, with true wireless stereo (TWS) earbuds experiencing a 9.1% year-on-year growth. Domestic brands continue to dominate the headphone segment, followed by Chinese smartphone vendors. The dip in the headphone segment is seen as temporary, as there is still demand for TWS earbuds.
Overall, the decline in the Indian smartwatch market highlights the need for innovation and differentiation to drive consumer interest. Companies that fail to introduce new features and advancements in their smartwatches are likely to face challenges in attracting customers. On the other hand, the headphone market is expected to rebound, particularly in the TWS segment, as demand for earbuds remains strong.
