Posted by The wearables market has shown a healthy growth of 8.8% in the first quarter of 2024 compared to the same period last year. However, this growth comes with a notable shift towards more affordable models, marking the fifth consecutive quarter of declining Average Selling Price (ASP).
Market Trends and Consumer Preferences
According to IDC’s Worldwide Quarterly Wearable Device Tracker, consumers are increasingly favoring mid-range and entry-level wearable devices over premium models. This trend suggests that buyers currently see limited value in spending extra on high-end wearables. Analysts predict that this might change with the introduction of advanced sensors capable of measuring metrics like blood pressure or glucose levels, which could drive interest in premium models.
Performance of Leading Brands
Despite overall market growth, leading brands experienced mixed results. Apple remains the dominant player but saw a significant market share decline, down almost 19% year-over-year. This drop is partly due to a sales ban and the removal of certain features, as well as a lack of new product launches in their headphone lineup, which is included in the wearables segment.
In contrast, Xiaomi showed impressive growth, with a nearly 44% increase in shipments year-over-year. Xiaomi’s success is attributed to its constant release of affordable products and a successful return to Wear OS, positioning it as the third largest Wear OS manufacturer.
Huawei also saw significant gains, overtaking Samsung for third place. This rise is linked to Huawei’s resurgence in the smartphone market, which has positively impacted its wearable division.
Samsung experienced a modest growth of 13%, slightly above the industry average, thanks to the popularity of the Galaxy Fit3. However, this wasn’t enough to counterbalance the declining sales of the Galaxy Watch, resulting in Samsung losing its third-place position to Huawei.
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Imagine Marketing, known for its “boAt” brand, held the fifth spot. While its headphone sales increased by 17.5%, its smartwatch sales dropped sharply by 61.3%.
Market Share and Shipment Data
Here’s a snapshot of the top 5 wearable device companies by shipment volume, market share, and year-over-year growth for Q1 2024:
| Company | 1Q24 Shipments (millions) | 1Q24 Market Share | 1Q23 Shipments (millions) | 1Q23 Market Share | Year-Over-Year Growth |
|---|---|---|---|---|---|
| Apple | 20.6 | 18.20% | 25.4 | 24.50% | -18.90% |
| Xiaomi | 11.8 | 10.5% | 8.2 | 7.9% | 43.4% |
| Huawei | 10.9 | 9.6% | 6.3 | 6.1% | 72.4% |
| Samsung | 10.6 | 9.3% | 9.4 | 9.0% | 13.0% |
| Imagine Marketing | 6.1 | 5.4% | 6.4 | 6.2% | -4.8% |
| Others | 53.1 | 46.9% | 48.2 | 46.4% | 10.1% |
| Total | 113.1 | 100.0% | 104 | 100.0% | 8.8% |
Conclusion
The wearables market continues to grow, driven by a preference for more affordable devices. While premium models currently see less demand, the introduction of advanced health monitoring sensors may shift consumer interest in the future. Brands like Xiaomi and Huawei are gaining ground with their aggressive market strategies, while Apple faces challenges due to market restrictions and a stagnant product lineup. As the market evolves, the focus on innovation and affordability will likely shape the competitive landscape.