The connected watch sector is booming, thanks in large part to a solid leader, Apple, which alone represents 100 million users, and relative outsiders Samsung and Garmin, which are growing strongly. The market is also booming with entry-level smartwatches, sales of which have increased by 547% in one year.
The Apple Watch counts more than 100 million users. Apple's connected watch continues to be a runaway hit, even though its market share has dropped slightly from 30.1% to 28% due to fierce competition. The connected watch market is in fine form and has grown by 27% in one year in terms of shipments, according to a new report from Counterpoint Research.
Apple has maintained its lead position, while Samsung (+43%) and Garmin (+62%) are recording admirable growths, higher than the market average. Samsung is trying to take the second place from Huawei thanks to popular products such as the Galaxy Watch 3 or the Watch Active 2. Garmin is making a strong entrance with its sports and fitness-oriented products. The only decline in the market compared to last year concerns Huawei, which is also experiencing a drop in sales of its smartphones. This decline can be explained by the smartwatch, which depends heavily on the brand's phones.
547% growth for entry-level watches
While Apple's watches are the top sellers, one segment of the market is experiencing explosive growth. Sales of connected watches under $100 have grown by 547% in one year, particularly in the United States. The US has the largest market share in terms of volume, ahead of China and India, a newcomer thanks to more affordable smartwatches.
The under-$100 watch segment is driven by brands like Xiaomi, realme, OPPO, Noise and boAT. Sujeong Lim, the report's lead analyst, tells us more about the market: "Looking at the success of Apple Watch, more OEMs have entered the smartwatch market with a relatively less advanced OS but comparable fitness and health-related features, and stylish designs at affordable prices targeting hundreds of millions of potential users globally. The pandemic has further pushed consumers towards being more health-conscious and features such as SPO2 and heart rate monitoring have trickled down to the sub-$100 smartwatch segment."
"Given the success of the Apple Watch, other OEMs have entered the smartwatch market with a relatively less advanced operating system, but comparable features related to fitness, health, or through sleek designs at affordable prices, targeting hundreds of millions of potential users worldwide. The pandemic has caused consumers to become more health conscious, and features such as SPO2 and heart rate tracking have emerged in the sub-$100 smartwatch segment."
The different uses of connected watches seem to have found their target, and an increasing number of users are taking the plunge. The interoperability between smartphone and smartwatch remains one of the main factors determining consumers' choice of different models. And indeed, leading brand Apple is preparing to launch another, new model of connected watch soon.
