India’s once-booming smartwatch market has hit a significant roadblock, with recent reports revealing a sharp downturn in shipments during the second quarter of 2024. According to data from the International Data Corporation (IDC), smartwatch shipments plummeted by 27.4% year-over-year (YoY), totaling just 9.3 million units, down from nearly 12.8 million in the same period last year .
This decline has broader implications for India’s wearable device market, which experienced its first overall contraction. Wearable shipments dropped by 10% YoY to 29.5 million units in Q2, marking a departure from the market’s prior growth trajectory . Analysts attribute this slowdown to a combination of innovation fatigue, cautious inventory management, and price wars that have stifled consumer enthusiasm for new models .
One of the most striking elements of this shift is the stark contrast between the early excitement that fueled India’s smartwatch surge and the current market stagnation. Domestic brands like Noise, Fire-Boltt, and boAt, which led the charge in recent years, have seen significant drops in their shipments. Despite aggressive price cuts aimed at clearing inventory, consumers appear reluctant to upgrade or replace existing devices, citing a lack of new features and meaningful innovation .
The decrease in average selling prices (ASP) has only exacerbated the problem. ASPs fell from $25.60 to $20.60 over the past year, reflecting deep discounts and promotional offers that have failed to reignite consumer interest (The New Indian Express).
However, amidst the decline, there is one bright spot: advanced smartwatches, which include features like full-fledged operating systems and app stores, have bucked the trend. This segment saw growth of 21.9%, with its market share rising from 1.5% to 2.5% YoY (TechCrunch). These “WristPhones,” as some are calling them, offer a glimpse into the future of wearables, with voice calling and nano SIM card slots positioning them as standalone devices rather than mere smartphone accessories.
Looking ahead, experts anticipate that the Indian smartwatch market will continue to face challenges. The consensus forecast points to a potential double-digit decline in annual shipments . Yet, some analysts remain optimistic that as brands diversify their portfolios—venturing into newer segments like smart rings—there could be opportunities for recovery. For now, though, India’s smartwatch sector is undergoing a critical phase of recalibration, as both brands and consumers await the next wave of innovation.
