Wearable Market Grows by 8.8 Percent in Q1, but Buyers Focus on Cheaper Models

Wearable Market Grows by 8.8 Percent in Q1, but Buyers Focus on Cheaper Models

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The wearable market grew by 8.8 per cent in the first quarter of 2024 compared to the first quarter of the previous year.

However, the market continues to shift towards cheaper models, marking the fifth consecutive quarter where the average selling price (ASP) has declined.

This insight comes from IDC’s Worldwide Quarterly Wearable Device Tracker. Analysts say consumers see little value in spending extra money on premium models and primarily stick to mid-range and entry-level devices, leading to a drop in ASP.

However, once advanced sensors, such as those capable of measuring blood pressure or glucose, hit the market, things might change, and we could see an increase in the popularity of premium models.

Wearable Market Grows by 8.8 Percent in Q1, but Buyers Focus on Cheaper Models

In the meantime, small regional brands are experiencing peak activity as their low-cost offerings enjoy a period of popularity. Looking at individual brands, Apple remains the leader, but its market share has significantly shrunk (down by almost 19 per cent year-on-year).

Analysts blame this disruption on sales bans and subsequent feature removals, but it is also partly Apple’s fault.

The wearable segment includes headphones, not just smartwatches, and the last time Apple launched new headphones was the third generation of AirPods in late 2021 and the second generation of AirPods Pro in late 2022. The AirPods Max are even older, dating back to 2020.

Xiaomi is increasing by almost 44 per cent year-on-year. The company always has new, affordable products, and its return to Wear OS has been triumphant. According to IDC, Xiaomi is now the third largest Wear OS maker.

Huawei has overtaken Samsung for the third spot, attributed to the company’s resurgence in the smartphone market, which has also seemingly boosted its wearable division’s fortunes.

The Galaxy Fit3 has proven popular for Samsung due to its low price, but more than its success was needed to offset declining Galaxy Watch sales. On the positive side, Samsung’s 13 per cent growth in Q1 still outperformed the industry average of 8.8 per cent.

In fifth place is Imagine Marketing; you might not have heard of it, but you may know it’s brand “boat.” Its headphones are performing well (up by 17.5 per cent), but smartwatches have declined by 61.3 per cent.

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