Smartwatch market grows 27% YoY in Q2 2021; Apple tops in shipments: Counterpoint Research

Apple maintained its number 1 position in terms of shipments in the second quarter of this year, but its market share declined slightly compared to the same period last year due to intensifying competition with Chinese and Indian brands, Counterpoint Research's recently published Global Smartwatch Model Tracker showed.

Among the global top 5 smartwatch OEMs, Samsung and Garmin demonstrated a remarkable shipment growth of 43 per cent and 62 per cent YoY, respectively, exceeding the average market growth rate and recording higher growth rates than other top brands.

Showing a full recovery from COVID-19, global smartwatch shipments in the second quarter of this year increased 27 per cent compared to the same period last year. Due to the steady popularity of the Galaxy Watch 3 and Watch Active 2, Samsung showed a quick recovery from last year's somewhat sluggish performance. Garmin recorded its highest shipments ever during the quarter. Among the Top 5 brands, only Huawei fell compared to the same period last year.

The decline in its smartphone business seems to have affected its smartwatch sales, as the smartwatch from such a vertical player is tightly optimised with the brand's smartphones and the users' loyalty to the brand's ecosystem of offerings.

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Apple Watch's user base crossed the 100-million mark for the first time during the quarter ended June, capturing the lion's share of the smartwatch user base globally. The US continues to be the key Apple Watch market, contributing to more than half of its user base, with an attach rate of close to 30%.

China, the second largest market after North America, grew in terms of volume but its growth rate was somewhat lower than that of other regions, and its share by region also decreased.

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As seen in the smartphone market, the recovery of consumer spending after the pandemic has been slower than in other regions. "Also, the space vacated by Huawei-HONOR in China is yet to be filled," the tracker shows. "India was the smallest market in the second quarter of last year, accounting for less than 2% of the total market, but its share increased to 6% in just one year.

The proliferation of sub-$100 affordable, feature-rich smartwatches from Chinese brands such as Xiaomi, realme and OPPO, and Indian brands such as boAt and Noise has been one of the key growth drivers," said Senior Analyst Anshika Jain.

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