Significant Drop Observed in India’s Smartwatch Shipments

Positioned just behind China, India emerges as a major player in the global wearable market, occasionally surpassing all others to become the top smartwatch market. However, during the second quarter, there was a 10% decrease in wearable shipments compared to the previous year, totaling 29.5 million units. The shipments for the first six months also saw a decrease of 4.7%, with only 55.1 million units shipped, as noted by the analysis firm IDC in its recent report.

Experts in the market predict that this downward trend could continue in the forthcoming quarters, pointing to smartwatches as the primary culprit for the decline.

The number of smartwatches shipped to India saw a significant fall of 27.4% year-over-year, dropping to 9.3 million units in the second quarter from the previous almost 12.8 million, as evidenced by research. A separate analysis by Counterpoint confirmed to TechCrunch a decline of up to 30% year-over-year in the Indian smartwatch market.

Reports from earlier in the year highlighted the challenges faced by Indian smartwatch manufacturers from emerging brands, as well-established companies struggled to stand out. Some have started exploring other product categories, like smart rings, to boost earnings.

A significant drop in the smartwatch segment’s share in the overall wearable market was also noted by IDC, falling to 31.5% from 39% the previous year.

“The lack of innovation and introduction of new features is a key factor for the slowdown in India’s smartwatch market,” Vikas Sharma, IDC’s senior market analyst for smart wearable devices, mentioned to TechCrunch. He pointed out that numerous local brands are releasing devices without offering any novel features.

In the Indian smartwatch sector, the leading brands, all of which are domestic companies such as Noise, Fire-Boltt, and boAt, experienced significant sales drops in the second quarter. Moreover, there was a notable reduction in the average selling price of smartwatches, which went down to $20.6 from the previous $25.6 amidst price cutting strategies employed by these brands to clear their stocks.

Nevertheless, these price reductions have not succeeded in garnering customer interest.

“The market’s stagnation in terms of feature innovation and differentiation has made consumers hesitant to purchase or upgrade smartwatches,” explained Anshika Jain, a senior analyst at Counterpoint, to TechCrunch. She noted that although smartwatches experienced substantial growth previously, the sector is now witnessing a slowdown due to diminishing novelty and excitement among consumers.

Despite the general downturn, advanced smartwatches featuring an app store and operating system saw their market share grow to 2.5% from 1.5%, marking a 21.9% increase, according to IDC.

However, TechCrunch received confirmation that both Apple and Samsung witnessed a drop in their quarter-over-quarter shipment volumes, declining around 29% and 26% in market shares, respectively.

Despite a market share of only 0.5%, Apple managed to ship an estimated 35,000–40,000 Apple Watch units in Q2, while Samsung held a 0.9% market share with approximately 75,000–80,000 units shipped, as per the findings.

Sharma emphasized that the market share decline for Apple and Samsung follows a cyclical pattern. He mentioned the strategy shifts, such as Samsung’s delayed new watch releases and the pause on bundling offers that used to make its smartwatches more affordable when bought with flagship smartphones.

Moreover, it was highlighted that the market for more sophisticated smartwatches is expanding, with Indian firms launching new Android OS models, featuring full Android capability (not Wear OS) along with the Play Store. These devices, branded as “WristPhones,” come equipped with a nano SIM card slot, supporting voice calls.

Despite these innovations, IDC predicts a 10% decline in India’s annual smartwatch shipments. Counterpoint also anticipates a double-digit percentage drop for the Indian smartwatch market this year.

Headphones market sees stable shipment levels

Along with the smartwatch sector, the headphone market in India also saw a period of stability, according to IDC, with 20.1 million units shipped in Q2, indicating a slight 0.7% year-over-year growth. The true wireless stereo (TWS) category experienced a 9.1% growth, increasing its market share from 65.5% to 71%. In contrast, the combined category of tethered and over-ear headphones witnessed a 16.1% decline, with shipments falling to 5.8 million units.

Domestic brands maintained their dominance in the Indian market, followed by Chinese brands Oppo and Realme. Apple, with its Beats sub-brand, and Samsung, along with its JBL, Infinity, and Harman subsidiaries, accounted for small fractions of the total headphone shipments.

Sharma from IDC noted that the stagnant headphone market is a temporary phase with a persistent demand for TWS earbuds still present. He also mentioned that IDC’s tracking does not include non-branded earbuds found online and in stores.

Predictions for the third quarter indicate a potential surge in headphone sales compared to Q2, whereas smartwatches might not see similar growth until at least 2026, according to Jain.

“Looking ahead to 2026 and beyond, we anticipate a recovery in the smartwatch market, driven by new use cases for these devices,” she concluded.