Will the Upgraded Apple Watch Series 9 and Watch Ultra 2 turn around Apple’s Smartwatch Slump?

Apple announced the anticipated Apple Watch Series 9 and Watch Ultra 2 on September 12.
Both watches will come with Apple’s new S9 SiP, powering several new features.
The launch comes amid a slump in Apple Watch shipments over the last three quarters.
While new features and hardware make the devices a notable upgrade over their predecessors, macroeconomic conditions may undermine the success of these devices.

Apple announced two new Watches – the Apple Watch Series 9 and the Watch Ultra 2 – at its launch event on Tuesday, September 12. The two devices feature several key updates over their predecessors that, on their own, are impressive. However, amid a slump in Apple Watch shipments, will the upgrades be enough to get buying consumers to the store?

Apple’s S9 SiP Brings New Features and Functionality

Central among the upgrades for both the Apple Watch S9 and the Apple Watch Ultra 2is theS9 SiP –the first new processor in an Apple Watch since the 2020 Apple Watch S6– which is a big deal. The new S9 SiP features over 60% more transistors, giving a 30% speed boost to its GPU. The chip also features a quad-core neural engine that is twice as fast as that on the Apple Watch Series 8, enabling improved on-device machine learning and AI functionality. Additionally, the S9 SiP features improved power efficiency, helping the Apple Watch S9 and Apple Watch Ultra 2 achieve a battery life of 18 hours and 36 hours, respectively.

The upgraded performance of the S9 SiP enables several new features on the Apple Watch Series 9 and Apple Watch Ultra 2. Notably, Siri will now operate on-device, making it faster and more reactive to users’ needs. The improved neural engine also makes dictation up to 25% more accurate, which should reduce the frustration users have when Siri misunderstands their requests. Users will also now be able to ask Siri to log health information or to reply to them with key health metrics. This should be helpful for when users are in the middle of a workout and are unable to look at their watch faces.

Apple Watch Series 9 from Apple’s Announcement

The updated neural engine also powers one of the event’s biggest Apple Watch announcements –the new double-tap gesture．Users can now double-tap their forefinger with their thumb on their watch-wearing hand to accept or decline calls, start and stop music, snooze alarms, and more. This feature will be very convenient for users whose other hand is occupied with another task. The neural engine processes data from the watch’s gyroscope, accelerometer, and heart-rate sensor to bring this feature to life. It’s also worth noting that the double-tap gesture is used for the Apple Vision Pro. It seems Apple is slowly introducing its consumers to the vocabulary of gestures that will drive its spatial computing devices.

Apple Watch Ultra 2 from Apple’s Announcement

Brighter Displays

Another upgrade to the Apple Watch Series 9 and Watch Ultra 2 was in their display technology. While the previous Apple Watch Series 8 and Watch Ultra featured displays of 1,000 nits and 2,000 nits of brightness at their brightest level. The Apple Watch Series 9 and Watch Ultra 2 feature up to 2,000 nits of brightness and 3,000 nits of brightness, respectively. This will make reading the display in bright outdoor settings much easier, which should be especially attractive to outdoors enthusiasts as well as athletes.

Sustainability Engineered into the Apple Watch S9 and Ultra 2

Apple engineered sustainability into the DNA of its new Apple Watches. From the materials used in the devices to shipping methods, Apple made a serious effort to reduce its carbon footprint. In fact, when paired with specific bands, the Apple Watch S9 and Ultra 2 are carbon neutral.Apple also announced that with recent measures, last year’s Apple Watch SE 2 is now carbon neutral with specific bands, making Apple’s entire lineup of latest watches carbon neutral. This sets a high bar for competitors who will feel the pressure to implement similar measures.

To achieve this feat, Apple moved to replace all cobalt in its Apple Watch batteries with recycled cobalt and moved to use 95% recycled materials for the casing of the Apple Watch Ultra 2. Additionally, Apple is shipping a higher number of units via ocean rather than air, which significantly lowers carbon emissions.

Pricing and Availability

尽管升级芯片,定价为新的应用程序le Watch S9 matches that of its predecessor, at $399 for the 41mm version and $429 for the 45mm version. The price for the cellular versions each cost $100 more. The Apple Watch Ultra 2 maintains the same price as its predecessor at $799. Consumers can trade-in their current smartwatch for up to $380 off through the Apple website.

*This section of the blog will be updated as major carriers and retailers announce their promotions.

Will the Apple Watch Series 9 and Watch Ultra 2 end the company’s Watch slump?

Apple’s smartwatch shipments have been in a slump. Since 2022, record levels of inflation caused consumers in North America and Western Europe to hold off on non-essential purchases, including smartwatches. This hurt Apple Watch sales, which were down 10% in Q2 2023 with YoY declines for three straight quarters. Due to this, Apple haslost sharein the global smartwatch market. Although macroeconomic conditions continue to impact consumers as they spend more on things like rent, mortgages, loan repayments, the updated chip in the Apple Watch S9 and Apple Watch Ultra 2 gives consumers a legitimate reason to upgrade from their Apple Watch S7 or earlier device. However, despite the upgraded hardware and new features, consumers’ budgets may be too strapped to make the upgrade. Therefore, promotions may play the deciding role in the success of Apple’s new devices.

Global Smartwatch Shipments Market Share (Q1 2022 – Q2 2023)

Global Smartwatch Shipments Market Share Q2 2023

August 31, 2023

This page represents theglobal smartwatch marketshare based onshipments by quarter(from 2022-2023) by top brands.

Note: Rankings provided are based on the standings for each quarter.
The chart includes the top three brands and “others” for each quarter.

Source:Global Smartwatch Shipments by Model Quarterly Tracker

DOWNLOAD:
(Use the buttons below to download the complete chart)

Global Smartwatch Shipments Market Share (Q1 2022 – Q2 2023)
Brands	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023
Apple	32%	27%	22%	37%	26%	22%
Samsung	10%	9%	12%	9%	9%	–
Huawei	7%	7%		7%		10%
Fire Boltt	–	–	–	–	9%	–
Noise	–	–	9%	–	–	10%
Others	50%	57%	56%	47%	56%	58%

Highlights:

The global smartwatch market’s shipments bounced back to increase by 11.1% YoY in Q2 2023 to reach 35 million. The previous two quarters had experienced a YoY decline.
While Apple and Samsung saw YoY declines of 10% and 19% respectively, Huawei and India’s top two brands – Noise and Fire-Boltt – recorded significant growth.
In terms of regional markets, India led the overall global gains as it more than offset declines in North America, Europe and the rest of Asia.

We also have a detailed smartwatch shipments model tracker available for subscribing clients:

Global Smartwatch Shipments by Model Quarterly Tracker, Q2 2023

This report analyses the shipments of smartwatches splitting them in ASPs, price bands and revenues. It also includes model and specs level analysis with a region split.
This is a robust quarterly report with fact-based deep analysis that covers multiple dimensions and will help players across the smartwatch value chain to holistically analyze the current state of the global smartwatch market and plan ahead of competition.

The global smartwatch market increased by 11.1% YoY reaching 35million of quarterly shipments. This is a turnaround in three quarters after experiencing a YoY decline in the previous two quarters.

While Apple and Samsung saw YoY declines of 10% and 19% respectively, Huawei and India’s top two brands – Noise and Fire Boltt – recorded significant growth. By region, India led the overall global gains as it more than offset declines in North America, Europe and the rest of Asia.

*Data on this page is updated every quarter

This data represents the global smartwatch market share by quarter (from 2020-2023) by top brands. For detailed insights on the data/tracker, please reach out to us atcontact(at)www.arena-ruc.com．If you are a member of the press, please contact us atpress(at)www.arena-ruc.comfor any media enquiries.

Disclaimer: The data, charts and other visuals on this page are the exclusive property of Counterpoint Research. While we encourage free use and sharing of all the data on this page, we do request that you always attribute Counterpoint Research

Global Smartwatch Shipments See YoY Growth After Two Quarters

In Q2 2023, global smartwatch shipments increased 11% YoY after declining for two successive quarters.
For the first time in two years, Huawei took the second spot, fueled by a 58% YoY surge in domestic shipments.
India’s market recorded a remarkable 70% YoY growth, whereas North America saw a 9% decline.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – August 29, 2023

Global smartwatch shipments increased 11% YoY in Q2 2023 after declining in both Q4 2022 and Q1 2023, according to Counterpoint Research’s recently publishedGlobal Smartwatch Model Tracker．印度的发货量同比飙升70%,担任the primary driver for the global market’s rebound. China’s market also recorded a modest increase. Besides, a shift in the competitive landscape was evident as Huawei ascended to the second position in terms of global market share.

Research Analyst Woojin Sonsaid, “Huawei recorded impressive growth in Q2 2023, securing the second position in quarterly shipments for the first time in two years. The leading Chinese brand’s growth stagnated for some time due to technological sanctions and a slowdown in its domestic market. Although the Chinese market’s recovery remained lukewarm, Huawei aggressively pushed new flagship products such as the Watch 4 series into the market in Q2, achieving its highest quarterly shipments after 2020. Huawei seems to be determined to bounce back in the market. It remains to be seen whether this momentum can be effectively expanded to other sectors, such as smartphones.”

Global Top 3 Smartwatch Brands’ Shipment Share, Q2 2023 vs Q2 2022

Source:Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q2 2023

Market summary

Applesaw a 10% YoY decline in its Q2 2023 shipments. This decline pushed its Q2 shipments to below 8 million units for the first time in three years. Consequently, Apple’s market share fell to 22% from 27% in Q2 2022.
Huaweimade big strides by increasing its domestic market share to 39% following a surge of 58% in shipments. This achievement propelled the brand to the second spot in the global smartwatch market share rankings. Another significant change was observed in the premium segment, especially in the >$500 band. Huawei’s products in the >$500 band in China expanded their share in the band to 52% in Q2 2023, a remarkable leap from the brand’s near-absence from the band in the same quarter of 2022.
Indian brandsNoiseandFire-Bolttemerged as major contenders, boasting 86% and 70% YoY growth, respectively. Within Noise’s offerings, products priced under $50 constituted a significant 98% of total shipments. Noise’s Colorfit Icon series managed to carve out a substantial 28% share of the total shipments. Fire-Boltt also made strides in expanding its market share by capitalizing on cost-effective smartwatches.
Samsungwitnessed a 19% YoY decline in Q2 2023. The brand managed to boost shipments in the Chinese and Indian markets. Samsung’s performance in North America and Europe, its pivotal markets, recorded 24% and 13% YoY declines, respectively.

Smartwatch Shipment Share by Region, Q2 2023 vs Q2 2022

Source:Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q2 2023

In terms of regional shipment shares, India’s market stood at 34%, a 12% points surge compared to the year-ago period. In Q2 2023, 88% of India’s smartwatch shipments were dominated by products priced <$50. Leading the charge in this segment were Noise, Fire-Boltt and boAt, collectively contributing to 72% of India’s total shipments.

TheChinese market’s share declined due to the swift expansion of India’s market. However, China’s shipments grew 5% from Q2 2022. In terms of revenue, the share of products priced >$500 surged to around 34% in China.

In North America, there was an 9% YoY reduction in shipments in Q2 2023. However, the revenue saw a rise of around 3% due to the sustained popularity of high-end premium products. Nevertheless, North America’s share inglobal smartwatchrevenues declined, compared to both Q2 2022 and Q2 2021.

Background

市场研究是一个世界人口对位技术l research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press(at)www.arena-ruc.com

China’s Q1 2023 Smartwatch Shipments Drop to Lowest in 12 Quarters

In Q1 2023, China’s smartwatch shipments declined both YoY and QoQ.
HLOS* smartwatches’ share increased when compared to that in 2022.
Despite its shipments falling 15% YoY, Huawei ranked first in Q1 with more than a quarter of the market share.
Apple’s Watch Series 8 was the best-selling model in Q1 even as the brand’s shipments fell 27% YoY.

Beijing, New Delhi, Seoul, Hong Kong, London, Buenos Aires, San Diego – May 30, 2023

China’s smartwatch market did not fully recover in the first full quarter after the country’s reopening. According to Counterpoint Research’s latestGlobal Smartwatch Model Tracker, China’s smartwatch shipments declined 28% YoY and 16% QoQ in Q1 2023 to reach their lowest level in 12 quarters.

Senior Analyst Shenghao Baisaid, “Although the Spring Festival can boost consumption generally, the demand for smartwatches was still weak in Q1 2023. This was similar to what we saw inChina’s smartphone shipments．The market needs more time to recover.”

The top three brands wereHuawei,AppleandBBK (imoo)．They accounted for nearly 60% of China’s smartwatch market in Q1 2023. Among the types of smartwatches, the HLOS* smartwatch’s shipments saw the smallest YoY drop even as its share increased to 45% from 39% in Q1 2022. Meanwhile, China’s ‘kids smartwatch’ shipments decreased 31% YoY. The country is the world’s biggestkids smartwatchmarket.

Chart-China-Smartwatch-Q1-2023

Source: Counterpoint’s Global Smartwatch Model Tracker

Note: Figures may not add up to 100% due to rounding

Commenting on the market trends,Research Associate Alicia Gongsaid, “Despite the overall demand for smartwatches dropping in Q1, the demand share for HLOS smartwatches rose. These are advanced watches offering users more customization and independence. Though BBK (imoo) still dominated the kids smartwatch market with a 35% share, its shipments of the watch remained flat YoY amid a shrinking kids segment.”

Market summary

Huaweiwas the biggest winner in China’s smartwatch market with a 27% share, thanks to its strategy of having multiple portfolios. Though the brand’s overall shipments dropped 15% YoY, it ranked first in all price bands from $101 to $400. The Huawei Watch GT 3 was the second best-selling model in Q1 2023.

Appletook the second largest share, mainly driven by its Apple Watch Series 8 and Apple Watch SE 2022. The two models were the first and third best-selling models in Q1 2023. However, Apple’s shipments decreased 27% YoY due to shrinking demand. Focusing on HLOS smartwatches helped the brand take an 87% share in the above-$400 segments.

BBK (imoo)’s Q1 shipments were generally flat YoY thanks to the back-to-school season. The brand benefited from its multiple-models strategy. Its Z6A series contributed the most to its shipments.

Xiaomi’s shipments saw a 42% YoY drop but a 31% QoQ increase in Q1 2023. The brand ranked first in the <$50 segment.

OPPOwas the only one among the main brands to see its shipments increase both YoY and QoQ. The performance was driven by theOPPOWatch 3 and OPPO Watch 3 Pro. OPPO’s market share increased to 4% in Q1.

Qihoo 360recorded a 35% YoY drop. It had fewer models on sale compared to Q1 2022.

Amazfithas a variety of models in China but lags behind in having popular models. The brand’s shipments declined 34% YoY in Q1 2023.

*HLOS smartwatch:Electronic watch running a high-level OS, such as Watch OS (Apple) or Wear OS (Samsung), with the ability to install third-party apps.

*All the prices mentioned in the article are wholesale prices.

Background

Analyst Contacts

Shenghao Bai

Alicia Gong

Counterpoint Research

Global Outsourced Manufacturing Smartwatch Shipments Rose 15% YoY in H2 2022

Luxshare was the top outsourced smartwatch manufacturer in H2 2022 as it undertook around 40% of Apple Watch production.
In Tier-2, Huaqin ranked first as it produced smartwatches from a variety of brands. Meanwhile, LINWEAR, I DO and Yawell benefitted from the stellar growth of Indian brands.
The share of outsourced manufacturing shipments is expected to continue to grow as the global smartwatch market expands.

Beijing, New Delhi, Hong Kong, Taipei, Seoul,San Diego, Buenos Aires, London – May. 2023

Global smartwatch outsourced manufactured shipments increased 15% YoY and accounted for 69% of overall global shipments in H2 2022, according to Counterpoint Research’s latestGlobal Smartwatch Outsourced Manufacturing Tracker and Report．

Senior Research AnalystShenghao Baisaid, “The YoY increase in outsourced smartwatch shipments in H2 2022 was driven by the strong performance of Indian brands Noise, Fire-Boltt and boAt. The outsourced manufacturers who offered production services for these brands benefited in H2 2022.”

Baiadded, “Asglobal smartwatch shipmentscontinue to grow, the contribution of outsourced manufacturing sources has also increased. 69% of global smartwatches were produced by ODM/EMS in H2 2022, compared with 63% in H2 2021.”

Luxshare,FoxconnandCOMPALwere the top three outsourced manufacturers in H2 2022. The three players were responsible for half of the global smartwatch outsourced shipments during the period. Luxshare ranked first in H2 2022 as it undertook around 40% ofApple Watchorders. Among Tier-2 players,HuaqinLINWEAR,我做Yawell强perfor显示mances in their smartwatch production businesses.

Source: Counterpoint Global Smartwatch Outsourced Manufacturing Tracker, H2 2022

Commenting on the performance of the leading players, Senior Research AnalystIvan Lamsaid, “The top three manufacturers mainly benefited from Apple Watch orders in H2 2022. Luxshare’s smartwatch shipments were flat compared with that in H2 2021. Foxconn’s shipments in H2 2022 rose due to the orders from Apple, helping the company rank second in terms of shipments. Meanwhile, COMPAL reduced orders from Apple in pursuit of a higher profit margin.”

Lamfurther added, “In Tier 2, Huaqin’s shipments increased slightly following the company’s partnership with Samsung. Huaqin also continued its cooperation withHuawei,HONORandOPPO．Manufacturers like LINWEAR, I DO and Yawell increased their shipments by cooperating with multiple brands, especially those from India which mainly focus on the <$50 segment. Yawell received a large share of orders fromNoiseandFire-Bolttin Q3 2022.”

ODMs and EMSshave started playing more important roles in the smartwatch industrial chain as the global smartwatch market continues to grow. The share of shipments from outsourced manufacturers is expected to rise to about 70% in 2023 from 68% in 2022 all year. Commenting on the trend,Baisaid, “The competition is getting tighter as well. There are increasing requirements for OEMs to be mindful of cost, deliverability and reliability.”

Background

市场研究是一个世界人口对位技术l research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Shenghao Bai

Ivan Lam

Counterpoint Research

Wearable Innovations Stand out at MWC Barcelona, 2023

Smartwatches, AR/VR and smart glasses were everywhere at MWC.
An unconventional attempt from Huawei stands out for smartwatch. OEMs seem to have begun to consider a new form factor beyond functionality.
高通Snapdragon空间,XR开发者platform will help expand the XR market by enabling more diverse content development.

Wearable devices are evolving and their future market prospects appear to be bright. Innovations in this sphere are getting more intriguing not only for device manufacturers, component suppliers, application developers and platform companies, but also for potential consumers. DuringMWC Barcelona, 2023, various new products and technologieswere showcased that attracted a lot of attention. Here is a summary of some of the key wearable innovations announced during the event:

Notable Devices

Smartwatch: Smartwatches have become the new battleground for smartphone OEMs. To differentiate their products amid intensifying competition, OEMs are emphasizing on conventional watch designs or on experimental form factors.

Xiaomi S1 Pro: During Xiaomi’sMi 13 seriessmartphone launch event, the company emphasized on its latest smartwatch the S1 Pro’s traditional design and connectivity with other devices. The long battery life of up to 14 days is one of the device’s key strengths. Through this launch event, Xiaomi attempted to solidify its ecosystem by establishing connectivity between smartphones and wearables, such as their smartwatches and earbuds.

Huawei Watch Buds and Watch GT Cyber: Huawei presented two experimental smartwatches at MWC 2023. The Watch Buds is a combination of a smartwatch and a set of earbuds. The device is designed to store earphones inside the watch display. Meanwhile, the GT Cyber’s design allows the bezel and strap to be separated. This indicated the possibility of the device evolving into a modular smartwatch like LG’s G smartphone series in the past.

Smart Glasses: Many Chinese consumer IT vendors who were absent during CES participated in MWC 2023, exhibiting their latest smart glasses. As smart glasses equipped with AR functions become mainstream, light and comfortable-to-wear glasses-type smart wearables are emerging as a form factor that can provide optimal user experiences for both consumers and businesses in the future.

OPPO Air Glass 2: OPPO’s smart glasses, the Air Glass 2, was unveiled atOPPO INNO Dayin January 2023. The company focused on the ultra-light design of the glasses, which can be worn for a long time, as it weighs only about 38g. The device is equipped with the world’s first diffractive waveguide lens developed in-house. A voice-to-text conversion function has been added for the hearing impaired, in addition to the basic functions of AR glasses, such as making a phone call, translating and navigating. This is still only a concept product as mass production of the mounted Micro LED display has not yet been achieved. It is highly likely that it will take a long time to commercialize the glasses or for them to be sold only in China on a small scale.
ZTE Nubia Neovision Glass:中兴通讯推出了首款基于“增大化现实”技术的智能眼镜的company pursues versatility to meet users’ needs not only in daily life but also in work environments, sports and entertainment. It has a Micro OLED display and will be released in China soon at a price of RMB2,999.

TCL NXTWEAR S: These smart XR glasses from TCL won the Best Connected Consumer Device Award at GLOMO 2023. The TCL NXTWEAR S is tethered with other devices such as smartphones and PCs. As its marketing concept, TCL emphasizes that the glasses appear like a 130-inch screen in front of the user’s eyes. In addition to the Micro OLED display, the glasses are equipped with an accelerometer, gyroscope and proximity sensor to focus more on gaming use cases. After TCL’s previous smart glasses, the NXTWEAR AIR, won the Most Innovative Award of The Year at CES 2022, the latest award at MWC proves that TCL has advanced the technology in this field.

New Innovations

eSIM

Mymanu Titan: Mymanu, a UK-based audio technology company founded in 2014, showcased the world’s first voice-controlledeSIM启用了耳塞,叫做泰坦,它允许一个standalone connected “phone-free” experience. The earbuds also have built-in live voice translation. The eSIM feature allows Titan to connect to a 4G network with which a user can perform some basic tasks that do not require a smartphone, such as playing music, making calls and sending texts.

Googlefinally announced its eSIM plans allowing Android to streamline the eSIM transfer experience while switching phones. Deutsche Telekom will be one of the first to adopt eSIM transfer on Android smartphones.

Human Augmentation

Docomo’s Motion Sharing Platform: Human augmentation platforms facilitate remote sharing of feelings and sensations using special wearables. This will be a possible use case when 6G is commercialized. The connected robot moves according to the movements of the user, who is equipped with motion sensors. This is expected to be highly useful in dangerous work environments or in remote medical care and healthcare.

(Demonstration of Docomo’s Motion Sharing platform using 6G at MWC)

Mudra Air-Touch: Israel-based Wearable Devices exhibited the Mudra Air-Touch feature, a neural input technology, and the Mudra Band for Apple Watch. These are the company’s solutions to integrate its technology into consumer products. The Mudra Air-Touch feature seamlessly switches control from devices such as iPhones, iPads, Mac computers and Apple TV devices, as well as other connected devices, including smart glasses, using subtle finger and wrist movements from hands-free and touchless devices.

Rollable Display: Lenovo attracted a lot of attention with its concept devices, the rollable Motorola smartphone and the rollable notebook. These devices are equipped with a rollable display developed by BOE. The rollable display was first introduced by LG Display at CES in 2018. Since then, major display panel makers such as Samsung Display, BOE, Visionox and CSOT have disclosed that they have rollable technology. The rollable display technology fits very well with the requirements of wearable devices to be worn on parts of the body. Therefore, this will be an important part of the expansion of the wearable market, but before that, the excessively high price issue needs to be resolved.

Platform

Google Keep for Wear OS: Through Google Keep for Wear OS, Google has added a function that allows smartwatch users to make notes or to-do lists by simply tapping the clock screen. Wear OS 3+ also has a new sound mode, display mode and gray scale to improve the clock’s accessibility.

(Google Keep for Wear OS / Image source: Androidpolice.com)

Qualcomm Snapdragon Spaces: Qualcomm’s most impressive announcement was its collaboration with seven carriers (Vodafone, Deutsche Telecom, Telefonica, KDDI, DoCoMo, T-Mobile and China Mobile) for the XR expansion ecosystem. Based on Qualcomm’s Snapdragon Spaces’ XR developer platform, helping these carriers support and commercialize developers in their respective countries will generate more diverse content keys to expand the XR market. It is expected to grow into an XR platform that can compete with Apple’s ARKit.

China Smartwatch Shipments Down 8.8% YoY in 2022; Huawei, Apple Dominate Market with Almost 50% Share

China’s smartwatch shipments declined 8.8% YoY in 2022,mainly due to the COVID-zeropolicy’s impact on consumption．The global shipments grew 9.0% YoY during the same period.
Huawei and Apple dominated the China smartwatch marketin 2022,raisingtheir combined shareto almost 50%.
Growth in the high-to-premiumsegment (>$200) was driven by increasing consumer demand for premium features like health monitoring and professional sports guidance．
The top three best-selling models were the Huawei Children Watch 4 Pro, BBK Q1A and BBK Z6A.

Beijing, New Delhi,London,San Diego, Buenos Aires, Hong Kong, Seoul – March 23, 2023

China’s smartwatch shipments fell 8.8% YoY in 2022, mainly due tothe COVID-zero policy’s impact on demand, according to Counterpoint Research’s latestGlobal Smartwatch Model Tracker．The year saw the country’s smartwatch market size shrinking to pre-COVID levels, with only Q1 2022 registering a quarterly YoY growth in shipments. Theglobal smartwatch shipmentsgrew 9% YoY during the same period.

Huawei and Apple dominated the China smartwatch market in 2022, with their combined share rising to almost 50%. OnlyOPPO(105% YoY),Apple(4% YoY) andHuawei(9% YoY) grew YoY among key brands.

Source: Counterpoint Global Smartwatch Model Shipments & Revenue Tracker

Note: Figures may not add up to 100% due to rounding

Senior Analyst Shenghao Baisaid, “China’s strict anti-COVID policies impacted consumer sentiment in 2022. Curbs on movement and remote education regulations further impacted the demand for kids’ smartwatches in the country, the world’s biggest kids’ smartwatch market, and their shipments fell 25% YoY. From key brands’ perspective, only Huawei, Apple and OPPO achieved YoY growth, driven by the success of their new launches.”

The biggest standout feature of the year was the high-to-premium segments’ (>$200) share rise. Shipments in the $301-$400 segment grew 31% YoY, while shipments in the ≥$401 segment grew a whopping 1138% YoY. The ≤$50 segment’s share dropped to 22%, with a 28% YoY decrease in shipments compared to the previous year.

Source: Counterpoint Global Smartwatch Model Shipments & Revenue Tracker

Senior Analyst Ivan Lamsaid, “The demand for high-end and premium segments remained relatively strong in 2022, despite the decline in consumer sentiment and global macro headwinds. This shift to the high-end segment is similar to the shift witnessed in the smartphone market in 2022. High-end smartwatch consumers usually have higher demands for health detection, communication and system features. Such consumers are also more loyal to the brand. In recent years, Apple and Huawei’s marketing efforts have led high-end consumers to view their smartwatches as professional-grade devices with advanced sports and health monitoring capabilities. These watches are also appreciated for their sleek and stylish designs, making them suitable for everyday wear.”

Research Associate Alicia Gongadded, “As Chinese consumers’ expectations for smartwatch features and experiences continue to rise, entry-level models’ (≤$50) share is falling gradually.”

Brands summary

Huaweienjoys a good reputation among Chinese consumers. Driven by price cuts, its Children Watch 4 Pro ranked first in the bestseller list for the market in 2022. The Watch 3 Pro and GT 3 (46mm) were the other two top-three models for Huawei. The brand benefited from its relatively more focus on HLOS smartwatches, with its HLOS smartwatch shipments doubling in 2022 to support Huawei’s 9% YoY growth in 2022.
Good sales ofApple’sWatch Series 7 models, coupled with the newly released Watch Series 8 and Ultra models, helped Apple register 4% YoY shipment growth in China. Continued innovation in health monitoring functions, as well as the perfect data and interaction experience, drove Apple’s growth. Meanwhile, the Ultra has created a new segment of professional smartwatches, which helped Apple dominate the premium segments.
BBK (imoo)recorded a double-digit shipment decline YoY. BBK relies more on offline channels, which were impacted by the strict COVID policy in 2022. Although the brand’s Q1A and Z6A models ranked second and third respectively in the China smartwatch market in 2022, its newly launched Z8 and D3 models failed to overtake previous annual sales leaders Z3 and Z5.
Xiaomi’s smartwatches mainly belong to the <$200 segments. Its annual sales in the China market dropped 18% YoY in 2022 as demand shrank in the $101-$200 and ≤$50 segments.
OPPOsaw a 105% YoY gain in 2022, mainly driven by its newly released Watch 3 Series. Its market share also increased to 3%.

Outlook

China’s smartwatch market is expected to rebound due to an active volume push by OEMs such as Huawei,Xiaomi,HONORand OPPO against the backdrop of post-COVID reopening in 2023. The market’s ASP (average selling price) is also expected to rise due to the continuous demand for more professional models.

Background

Analyst Contacts

Shenghao Bai

Ivan Lam

Alicia Gong

Follow Counterpoint Research

press@www.arena-ruc.com

BoM Analysis: Google Pixel Watch Costs $123 to Make

TheBoM costof the LTE-capableGoogle Pixel Watchis estimated to be $123, which is a big leap from the previous Fitbit smartwatches.
Samsung not only provides the highly integrated main chipset but also supplies the LTE transceiver and other paired components, collectively accounting for around 20% of the total BoM cost.
BOE, which is the exclusive supplier of the smartwatch’s custom 1.2-inch-diameter OLED display, captures over 14% of the total BoM cost to rank second in terms of cost contribution.

The bill of materials (BoM) cost of the LTE-capableGoogle PixelWatch is estimated to be $123, according to a BoM analysis byCounterpoint’s component research practice．As the first smartwatch built on the back of Google Wear OS and Fitbit OS, the Pixel Watch comes with a dual-processor solution. Compared to the previous Fitbit watches, which had a lightweight proprietary OS running on MCUs (microcontroller units) supplied bySTMicroelectronicsor Cypress, the new system is based on a high-performance processor to unleash the power of the latest Wear OS 3.5 and also features a co-processor or MCU to optimize battery life, which had been a competitive strength of Fitbit watches. The change not just introduces richer features but also results in a significant increase in the BoM cost.

Google Pixel Watch BoM Cost Structure by Function

Source: Counterpoint’s BoM Analysis Service

Note: Figures may not add up to 100% due to rounding.

Processing and Memory

Based on our BoM analysis, the Exynos 9110, manufactured at SamsungFoundry’s 10nm process node, is the main processor. It integrates a dual-coreARMCortex-A53 CPU at 1.1GHz, a Mali-T720-based GPU and an LTE Cat.4 modem, which is paired with the audio codec and PMIC in the SIP-ePoP package. Thanks to the high integration, the layout of the 32mm-diameter PCB is not congested. However, the first-generation Pixelsmartwatchwould have delivered faster, smoother performance had Google built its system on the more advanced Exynos W920 platform.

The co-processor isNXP‘s MIMXRT595S. It is an Arm Cortex-M33-based MCU with DSP and GPU cores. The combined cost of the two processors and Kingstone 32GB+2GB ePoP memory accounts for nearly 27% of the total BoM cost.

Display subsystem

Another key functional block of the Google Pixel Watch is the 1.2-inch “Always-on” OLED display. It has a resolution of 450×450 dots or 320 ppi and supports up to 1000-nits brightness for a clear display in sunlight.

Above the screen is a custom 3D Corning glass (Gorilla Glass 5) which can save the model from waist-high drops.

Sensors

As a smartwatch with healthcare and fitness features, the Pixel Watch is equipped with multiple sensors, including a 6-axis inertial sensor and a digital compass (both from STMicroelectronics), an altimeter, an ambient light sensor (ALS) and a light encoder to enable the haptic crown.

In addition, theheart rate monitoringsystem consists of Texas Instruments’ analog front end (AFE) and three sets of infrared LED and photodetector, which is behind the ECG feature.

Connectivity and Cellular

The Pixel Watch delivers more independent-use experiences thanks to the support of LTE Cat 4 communication, which consists of Samsung’s S915 transceiver, Skyworks’ highly-integrated SKY53737 diversity receiver and SKY77643 multi-mode, multi-band PA module, Qorvo’s antenna switch, and multiple duplexers from muRata.

Besides, the design also includes standalone GPS chip BCM47765 and Wi-Fi/Bluetooth combo BCM430132 from Broadcom, and STMicroelectronics’ ST54J1ATNN NFC chip to support eSIM and Google Pay.

Design wins: Samsung, BOE biggest beneficiaries

Samsungnot only provides the highly integrated main chipset but also supplies the LTE transceiver and other paired components, collectively accounting for around 20% of the total BoM cost.

BOE, which is the exclusive supplier of the smartwatch’s custom 1.2-inch-diameter OLED display, captures over 14% of the total BoM cost to rank second in terms of cost contribution.

Conclusion

由于像素看的推出,谷歌公顷s managed to further expand its hardware portfolio under the Pixel family. The industry expects the move will help increase the popularity of the Wear OS ecosystem. But when compared with the current market leader, the Apple Watch series, which differentiates itself by leveraging the high integration of in-house hardware and software, and refined design, and accounts for approximately one-third of total shipments, there is still room for the Pixel Watch series to improve. Through the deep collaboration with Samsung, Google is likely to empower its next-generation Pixel Watch with a more powerful, integrated, intelligent and secure processing platform.

Ethan@www.arena-ruc.com

MWC 2023 Day 2: TECNO Phantom V Fold, realme GT3 240W, CloudSIM™ and More

It was yet another busy day in chilly Barcelona with some interesting announcements.Nothingrevealed details of its upcoming smartphone,realmeannounced the GT3 240W with the fastest charging tech,TECNOshowed off its folding smartphone, Oasis Smart-SIM showcased its CloudSIM™ solution, and much more. Below is our quick summary of the announcements from Day 2 of theMWC 2023:

TECNO joins the foldable revolution

TECNO made its MWC debut launching several products, including the Phantom V Fold, Spark 10 Pro selfie phone and Megabook S1 2023 laptop. Of course, the standout product announced at the event was the TECNO Phantom V Fold book-type foldable smartphone. Under the hood is a MediaTek Dimensity 9000+ SoC, making it the second folding smartphone powered byMediaTekSoC after theOPPO Find N2．

The smartphone features a 6.42-inch 120Hz LTPO AMOLED cover screen and a 7.85-inch 2K 120Hz LTPO folding display inside, which is bigger than theGalaxy Z Fold4．It comes with a 5,000mAh battery and 45W fast charging. The TECNO Phantom V fold will first launch in India at a price of $1,099 for the 12GB RAM and 256GB storage version, making it the most affordable book-type folding smartphone. There will also be a 512GB storage version priced at $1,222.

The Africa market, where TECNO is the #1 brand, is relatively dominated by the low-end segment. Expansion to overseas markets, where consumers are ready to pay a more premium amount, has also presented an opportunity for TECNO to launch devices in higher price bands. For that, foldables currently seem to be the perfect option to make a statement in the premium segment. Since it is a new segment, OEMs also have opportunities to launch products at new price points. The debut of its foldable at the MWC 2023 cements TECNO’s global aspirations.

realme GT3 240W brings the fastest charging tech to smartphones

realmeis holding true to its ‘Dare to leap’ motto. In 2022, it was the first OEM to offer a 150W charging-capable smartphone. The company is pushing the boundaries further and has now become the first brand to introduce a240W-capable smartphone．At the MWC 2023, realme announced its latest phone, the GT3, featuring 240W charging capability. According to the realme presentation, the 240W technology is capable of fully charging the GT3’s 4,600mAh battery in roughly 10 minutes, and it can charge to 50% capacity in just four minutes.

Courtesy – Madhav Sheth (realme)

GT3 is the fastest phone in the industry to charge from 0 to 20% in only 80 seconds, which realme showcased in the real-time demo during the MWC announcement. realme also claims this is the industry’s fastest charging speed while gaming. A vapor chamber liquid cooling system takes care of the overall health of the battery by reducing extra heat produced during fast charge. realme added multiple sensors and a fireproof design to the new device while also addressing the major issue of battery longevity, which reduces due to fast charge. The GT3’s battery can be at 80% battery health after 1,600 charging cycles which is double the industry standard of 800 cycles. The realme GT3 price starts at $649 for the 8GB RAM with 128GB storage variant.

Oasis Smart-SIM demonstrates new CloudSIM™ solution

At the MWC 2023, Oasis Smart-SIM and TATA Communications jointly revealed their latest innovation, the CloudSIM™. It is a remote hardware SIM which is stored in a dedicated, secure, GSMA-certified environment. CloudSIM™ is primarily aimed at use cases that do not require permanent connectivity. The overall cost of connectivity is reduced by limiting the number of profiles required for fleet operations and providing on-demand connectivity. The below video demonstrates some of the key use cases of the CloudSIM™ solution.

Nothing Phone (2) to be powered by Qualcomm flagship SoC

Nothingmade a small announcement at the MWC 2023 about its upcoming smartphone. While it did not reveal much, the company did mention that the next smartphone will be powered by aQualcommSnapdragon 8-series chipset. This will be a big upgrade from the existing 7-series SoC on theNothing Phone (1)．However, Nothing did not mention which chipset it will be using, so it could be theSnapdragon 8 Gen 2or could also be last year’s Snapdragon 8+ Gen 1 SoC. Looks like we will have to await further details.

泰利斯公司推出世界上第一个GSMA-certified我SIM with Qualcomm’s latest Snapdragon mobile platform

Thales has announced that its integrated SIM (iSIM) solution has now been certified by the GSMA and is ready to be deployed commercially with Qualcomm’s Snapdragon 8 Gen 2 platform. In 2021,Thales,VodafoneandQualcommhad shown a working demonstration of theiSIM．

What is iSIM? And why is it important?

iSIM is a type of SIM that is directly integrated into the processor of the device. As the next step of SIM evolution, iSIM offers significantly more space reduction than eSIMs do and lowers power consumption. This is also part of a bigger trend where we have seen multiple components, such as the modem, getting integrated into the processor of the device. Along with smartphones, iSIMs also bring multiple benefits to theIoTecosystem.

Image Courtesy: Thales

目前,大约有20%的智能手机装在2022 were eSIM capable. The adoption of eSIM in smartphones has been slower than what was expected three years ago due to a variety of reasons. However, the biggest hurdle has been the need for additional components required to add eSIM capability.

For iSIMs, it would be a different case because the SIM is integrated into the processor and its adoption, unlike theeSIM, will be dependent on the support of chipsets. The iSIM will see faster adoption than the eSIM because the number of players providing chipsets is limited. While we have already seen multipleIoTdevices with iSIM, the first iSIM smartphone is expected in 2024.

Huawei Watch GT Cyber gets an extreme makeover

Huawei showcased its Watch GT Cyber, which is already available in China since November 2022. Thesmartwatchcomes with interchangeable cases, and the display updates when inserted into a new case. It uses magnets along with mechanical parts to remain connected with the cases. The concept is similar to smart bands with changeable straps but with innovation that makes the whole watch body different. We will have to see if Huawei allows third-party case makers to function with the smartwatch.

The Huawei Watch GT Cyber flaunts a 1.32-inch circular display with a resolution of 466x466pixels and a pixel density of 352ppi. It is water resistant up to 5ATM and comes with all the regular sensors like a barometer and magnetometer. The battery can last up to seven days on a single charge. It also has a Bluetooth calling feature.

Huawei showcases the 5.5G era and its use cases

With 5.5G,Huaweiaims to offer 10X better performance over5G, and thus create 100-fold business opportunities by opening up five frontiers:

1) Expansion in services with immersive and interactive experiences

Online 3D malls and 24KVRgaming to become mainstream. While 5G allows these use cases, 5.5G will enhance them. Huawei expects over one billion users.

2) Enable industry digitalization

Huawei expects private networks to increase 10x as the tech becomes more capable. It forecasts one million private 5G networks by 2030.

3) Cloud applications entering a new era, creating new opportunities for network connectivity

The company aims to reduce latency which will further make cloud applications more reliable and accessible.

4) Cellular networks cover all IoT applications and passive IoT enables 100 billion connections

Passive IoT tags (e.g. RFID) will allow further solutions to better warehouse management, asset tracking, and other scenarios. Huawei expects 100 billion passive IoT tags per year from 30 billion in coming years as industries get more digital.

5) From communication to integrated sensing and communication, facilitating new services

Huawei aims to develop a more connected world using the sensing capabilities of 5.5G. It would help bring up information about areas where cameras are unable to work like during fog or rain. This would make transportation much safer.

With inputs fromVarun Mishra,Karn Chauhan, Ankit MalhotraandHarshit Rastogi．
This is a developing post…….

Global Smartwatch Shipments Grow 9% YoY in 2022; Price Polarization Seen in Demand

The market showed decent YoY growth in 2022, though it dropped 8% YoY in Q4
Quarterly shipments turned to a YoY decline after seven consecutive quarters of growth.
Shipments in the >$400 price band more than doubled in 2022, while the mid-price range saw a YoY drop.
Indian brands such as Noise and Fire Boltt found spots in the global top 5 sellers’ list thanks to the rapid growth of their domestic market.

Seoul, New Delhi, Hong Kong, Beijing, London, Buenos Aires, San Diego – February 22, 2023

Theglobal smartwatch market shipmentsgrew 9% YoY in 2022 due to the strong YoY growth witnessed in the first three quarters of the year, according to Counterpoint Research’s recently publishedGlobal Smartwatch Model Tracker．But the shipments fell 8% YoY in Q4 2022 amid inflationary pressures and slowIndia growth．This was the market’s first negative growth in eight quarters since the pandemic hit the world in 2020.

Global Top-selling Smartwatch Brands’ Shipment Share, 2022 vs 2021

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q4 2022

The most striking feature of the year was price polarization in demand. Shipments in the mid-price range decreased while those in the >$400 and ≤$100 segments increased 104% and 41%, respectively, compared to the previous year.

Research Analyst Woojin Sonsaid, “Apple strongly drove the average selling price (ASP) rise in the global smartwatch market in 2022, especially in the >$400 price band. There are two main reasons for this ASP rise – a diversified Apple smartwatch line-up and a rise in the exchange rate. This year, Apple released its first premium model, Ultra, at a release price of $799 in the US. In addition, as the exchange rate rose, the local price of Apple Watch in various countries changed. The demand for the premium segment remained relatively strong despite the decline in consumer sentiment at the end of 2022.

Sonadded, “On the other hand, we must be cautious about the low-price band of sub-$100. While this segment expanded in 2022 along with the remarkable growth of India’s market, it showed a large withdrawal in Q4 when compared to Q3.”

Global Smartwatch Shipment Share by Wholesale Price Band, 2022 vs 2021

Source: Counterpoint Global Smartwatch Model Shipment & Revenue Tracker, Q4 2022

Market summary

In 2022,Apple’s global market share decreased by 2.6%p with shipments remaining almost flat year on year. In terms of revenue, however, it grew 15% YoY, accounting for 56% of the global smartwatch market revenue and further widening the gap with No. 2 Samsung.
Samsung’s yearly shipments increased by 12% to account for more than 10% of global smartwatch shipments in 2022. Although sales of the newly released Galaxy Watch 5 series in the year were positive, its revenues only increased by less than 1%, which seems to be largely due to a slight drop in the ASP compared to the previous year.
Huawei‘s market share fell 0.5%p YoY due to the Chinese smartwatch market losing momentum to India in 2022. However, the brand’s revenue increased by 20% thanks to its relative focus on HLOS* smartwatches.
NoiseandFire Boltt, the Indian brands that supported the rapid growth of their home market, showed excellent growth in 2022. The two brands surpassed 5% of the global market share to rank fourth and fifth, respectively. Although the makers failed to beat Huawei as the Indian market’s growth slowed in Q4, they are attracting discussions on whether they will be able to threaten Samsung’s position beyond Huawei next year.
FitbitandXiaomi’s rankings fell to 10th and 11th in 2022 from 7th and 8th in the previous year. The strength of Indian brands was also affected, but these two brands failed to defend their share in their main markets like North America (Fitbit) and China (Xiaomi). Their shipments were decreased or flat compared to the previous year.

Smartwatch Shipment Share by Region, 2022 vs 2021

Note: Figures may not add up to 100% due to rounding

Source: Counterpoint Global Smartwatch Model Tracker, Q4 2022

In terms of regions,North America作为最大的smartwatch市场在第四季度2中恢复过来022, which also allowed it to remain in first place for a full year again. The Apple’s home market showed a significant increase in shipments QoQ, despite the sales of Apple Watches being lower than expected in the fourth quarter. However, North America’s share decreased slightly as India emerged as another core region in 2022.

India’s market more than doubled compared to 2021. It grew steadily until Q3 2022 but fell 36% QoQ in Q4.Senior Analyst Anshika Jainsaid, “The third quarter of 2022 saw a big rise because most of the brands pushed high inventories into the channel ahead of the festive season. Therefore, we saw a decline in shipments in the fourth quarter.”

第四问uarter of 2022, China’s shipments rebounded for the first time in the year as the COVID-zero policy was eased, and both Huawei and Apple are received a positive response with their more diverse products.

*Smartwatch type definition

HLOS smartwatch:Electronic watch running a high-level OS, such as Watch OS (Apple) or Wear OS (Samsung), with the ability to install third-party apps.
Basic smartwatch:Electronic watch running a lighter version of an OS, with the inability to install third-party apps.

Background

Analyst Contacts

Sujeong Lim

Neil Shah

Follow Counterpoint Research

press@www.arena-ruc.com

Top

Global Smartwatch Shipments Market Share Q2 2023

Global Smartwatch Shipments by Model Quarterly Tracker, Q2 2023

Related Posts

Market summary

Related Posts

Related Posts

Notable Devices

New Innovations

Platform

Related Posts

Related Posts

Processing and Memory

Display subsystem

Sensors

Connectivity and Cellular

Design wins: Samsung, BOE biggest beneficiaries

Conclusion

Related Posts

TECNO joins the foldable revolution

realme GT3 240W brings the fastest charging tech to smartphones

Oasis Smart-SIM demonstrates new CloudSIM™ solution

Nothing Phone (2) to be powered by Qualcomm flagship SoC

泰利斯公司推出世界上第一个GSMA-certified我SIM with Qualcomm’s latest Snapdragon mobile platform

What is iSIM? And why is it important?

Huawei Watch GT Cyber gets an extreme makeover

Huawei showcases the 5.5G era and its use cases

1) Expansion in services with immersive and interactive experiences

2) Enable industry digitalization

3) Cloud applications entering a new era, creating new opportunities for network connectivity

4) Cellular networks cover all IoT applications and passive IoT enables 100 billion connections

5) From communication to integrated sensing and communication, facilitating new services

Related Posts

Market summary

*Smartwatch type definition

Related Posts

Coverage

Insights

Social media

Contact us

Term of Use and Privacy Policy