The global smartwatch market, which had shown consistent growth in recent years, experienced a decline in the first quarter of 2023. According to Counterpoint Research's Global Smartwatch Model Tracker, smartwatch shipments slumped by 1.5% year-over-year in Q1 2023. The shipment slump can be attributed to reduced demand from major players such as Apple and Samsung.
One of the significant contributors to the decline in smartwatch shipments is Apple, the leading player in the smartwatch market. The company witnessed a notable decline of 20% in smartwatch shipments during Q1 2023 compared to the same period last year.
This decline resulted in Apple's shipments falling below 10 million units for the first time in three years. As a result, Apple's market share dropped from 32% to 26%. The reduced demand for Apple watches can be attributed to the global economic crisis.
Another major player in the smartwatch market, Samsung, faced a mixed performance during Q1 2023. While the company witnessed a 15% increase in shipments in North America, it lost ground in other regions.
Samsung's global shipments experienced a 15% year-on-year decline and a 21% quarter-on-quarter drop. This decline led to a 1% decrease in Samsung's market share, from 10% to 9%. Interestingly, Galaxy Watches experienced growing popularity in North America during the first quarter of 2023 but faced a decline in other major markets.
The decline in global smartwatch shipments during Q1 2023 can be primarily attributed to the prevailing global economic pressures. Financial uncertainties and reduced consumer sentiment impacted the purchasing decisions of buyers, resulting in a decrease in demand for smartwatches.
Also, an Indian brand, Fire-Boltt, has made significant strides in the global smartwatch market, emerging as the second-largest watch seller worldwide. The company achieved a remarkable 57% growth compared to the previous quarter.
Source: Counterpoint Research's Global Smartwatch Model Tracker
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