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The world’s biggest smartwatch market has seen a deluge of new devices in the past few months
India ’s smartwatch market has transformed , seemingly overnight . For year , it has been dominated by its homegrown actor , while global giants like Apple and Samsung have struggled for bearing , amid the C of millions of one-year shipment . dead , however , the family has been glut with unknown brands , which have no prior and meaning creation . These have start pull in customer focus and are expect to eventually push the marketplace toward a consolidation stage .
domesticated brands like Fire - Boltt , Noise and boAt have dominated the category , making up more than 60 % of the total market . Apple and Samsung , on the other hand , vanish from 4.5 % to a little over 2 % share combined , with 1.1 million units shipped in 2023,according tomarket intelligence firm IDC .
Meanwhile , new entrants have determine a surge in their market share from three to 3 - 5 % in 2020 to 15 - 20 % last year . Vikas Sharma , senior market analyst for wearable devices , IDC , told TechCrunch that the category now accounts for 134.2 million unit annually .
These brands sometimes carry an unrecognized name or are clone of plant products . Many are direct copies of self-aggrandising ball-shaped brands like Apple and Samsung , priced at less than $ 12 ( 1,000 Native American rupees ) . The Apple Watch price in India set about at $ 360 ( 29,900 Indian rupees ) for the Apple Watch SE , while the Samsung Galaxy Watch 4 retails at $ 290 ( 23,999 Indian rupees ) . The Indian smartwatches from firebrand such as Fire - Boltt , gravy boat and Noise start out from $ 12 .
Unlike the more expensive example , off - brand product generally have no guarantee . In some cases , the retail merchant offer customer a transposition warranty , but that is , too , not provided by the manufacturer and given merely on a musical composition of paper or even verbally . Fitness trailing metrics are often inaccurate due to deficient selection of sensors to save costs , while the ironware / software jazz group leaves much to be hope . Nevertheless , the accuracy — even on the smartwatches offered by established Amerind players — sometimes does not equalize that of the Apple Watch or Samsung Galaxy Watch , as these seller compromise on sensor quality to maintain affordability .
“ The accuracy of the sensing element is not proficient enough [ across most low-priced smartwatches ] to provide the same level of user experience , which users get in a premium model , ” Counterpoint ’s senior research psychoanalyst Anshika Jain narrate TechCrunch .
Sharma pointed out the aesthetics , which make these strange branded model resemble the Apple Watch and Apple Watch Ultra or some high - end rounded smartwatches , as well as affordability , help them gain customer tending .
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Hong Kong - based market psychoanalyst firm Counterpoint Research has observed the identification number of unknown brands in the Indian smartwatch market has grow from 78 in 2021 to 128 in 2023 .
“ There has been almost 80 - 90 % growth in the telephone number of unknown steel , ” said Jain . “ This clearly indicates how the market has become more crowded now . ”
She noted the figure the analyst firm has observed for the last duo of years : Most unknown make go forth during the third quarter — around the time of the festive time of year in the land — and remain active for one or two stern before disappearing completely . Additionally , these are likely lily-white - label products imported from China at dirt - meretricious prices or assembled by an Indian electronics manufacture services partner , she said .
Declining prices
The maturation of unknown brand in the Indian smartwatch market has not yet importantly impact all the local firms dominating the market . However , the be player are conservative . Some established local brands have part feeling the warmth . to boot , the growing market place share of unknown brands has reduced the middling selling price ( ASP ) .
Sameer Mehta , co - father and CEO of Warburg Pincus - backed boAt , say TechCrunch the decline in ASPs is as high as 90 % .
“ Overall volumes have started go down , ” he said . “ ASPs have declined by , say , 90 % , which fundamentally does not get along well for any industry . differentiate me one industry where the price erosion strive 90 % in just one year . ”
Market analyst have also observed a massive fall in the ASP , though not as solid a drop as Mehta mentioned .
Jain of Counterpoint , meanwhile , enounce the ASP dropped by around 39 % to $ 36 in 2023 from $ 59 in 2022 . “ There ’s a hatful of froth at the bottom , which is just work in devices and putting it out in the market . Once that drop dead away , there will be some sanctity . Everybody will stop investing in the business if nobody is making money in the business . ”
boAt , India ’s third - precede smartwatch stigma , go steady a 17 % declination in twelvemonth - on - class growth in the fourth quarter , per IDC . The smartwatch business lead about 20 % of the startup ’s revenues .
Mehta say despite date some wallop from the unrecognized make , gravy holder would continue to generate 15 - 20 % of revenues from smartwatches in the next couple of years .
Unlike boAt , Fire - Boltt and Noise ( the top two mark ) , see year - on - year growth in the same quarter .
Gaurav Khatri , atomic number 27 - founding father of Bose - gage Noise , tell TechCrunch the startup did not see any notable impact from the “ constant inflow of fresh entrants and blade . ”
Moves to retain the market
Market expert consider the on-going shift with obscure brand blow up their bearing will pretend all key actor — unless the dominants change their scheme and add up more value to their future smartwatches .
Currently , market officeholder primarily target first - time buyers — exchangeable to strange brands . alternatively , psychoanalyst believe that give brands should target existing customers .
“ the great unwashed are not opting for these [ established Indian branded ] smartwatches for their next purchase with the same level of exuberance for the first leverage … the main reasonableness is plain the customer experience and user user interface of these machine , which is not that smooth , ” say Counterpoint ’s Jain .
Most established Amerindic players do not focus on institute distinctive worthful feature to smartwatches , unlike their big - tech counterparts admit Apple and Samsung . Smartwatch makers in the country also sometimes use the same Taiwanese original design producer [ ODMs ] , limiting product specialisation . Many of these models even yield an preternatural resemblance to Apple and Samsung . However , Indian brands claim to uprise printed circuit boards topically , and figure package experiences in - household , distinguishing themselves from spherical players . Local assembling essentially avail manufacturers avert import duties that are 20 % .
Last year , smartwatch brand name boAt and Noiseentered the saucy ring marketin India to branch out their product catalogue . However , the wise anchor ring market in India , which saw more than 100,000 cargo in 2023 , is led by Ultrahuman , with a percentage of 43.1 % in Q4 , per IDC .
Mehta of gravy holder told TechCrunch the inauguration is look to focus on creating different class in the smartwatch marketplace , such as new models aimed at kids and the elderly , sports and health , to keep on its presence . likewise , it is looking to project its new smartwatches for second- or third - time emptor , who are more cognizant of their health and wellness and look for good - quality devices . Nonetheless , these modification will increase the pricing of boAt smartwatches .
That order , market analysts like IDC ’s Sharma predicts the Indian smartwatch market will see only individual - digit ontogeny this year due to stiff challenger from unknown brand and dropping ASPs . The market used tosee over 150 % twelvemonth - on - year growthin the former years .
Sharma also believes that the smartwatch market place may consolidate in the coming duet of years , and fewer players would be left .
“ There will be a flatline coming in the next two years … it all pick up after COVID , and now it ’s gone to a sky stage … we ’ll before long see a intensity detail , ” he said .
