A new report from market research firm Counterpoint Research claims that shipments in the global smartwatch market will increase by 12% year-on-year in 2022 thanks to strong growth in the first three quarters of this year.
According to the report, deliveries in the fourth quarter of 2022 will decrease by 2% compared to the same period in 2021 due to economic inflationary pressures and slowing economic growth in India. This is the first time in eight quarters that the market has experienced negative growth since the outbreak of the 2020 novel coronavirus that swept the world.
Counterpoint believes that the most important feature of the year is price polarization. Shipments of mid-range watches were down, shipments of watches over $400 were up 129%, and shipments of watches under $100 were up 34%. year.
Research analyst (Woojin Sun) said: “Apple is expected to show strong performance in increasing ASP in the global smartwatch market in 2022, especially in the $400+ price category. There are two main reasons for the rise in ASP, one is Apple's diversification of smart watch options and the second is the appreciation of the exchange rate. That year, Apple launched its first Ultra model, which cost $799 in the United States. Also, with the rise in the local price of Apple watches in different countries, the exchange rate has risen, and prices have also changed. Despite the loss of consumer confidence by the end of 2022, demand for the premium class remains relatively strong.
"On the other hand, we have to be careful in the sub-$100 price category," Sun added. Despite the growth of the industry in 2022 apart from the significant growth of the Indian market, there was a significant slowdown in the fourth quarter compared to the third quarter.
In terms of shipments by various companies in 2022, Apple shipments increased by 17%. In addition, with the demand for (Apple Watch Series 8) Apple Watch Series 8 and (Apple Watch SE 2022) Apple Watch SE 2022, annual shipments increased by about 50 million units for the first time, which is about 60% of global production. Smart watch market revenues will also widen the gap with the second Samsung.
Samsung's annual shipments grew by 12% and accounted for about 10% of global smartwatch shipments. However, sales increased by only about 0.5% due to a slight decrease in the average selling price on an annual basis, noting that sales of the company's latest watch, (Galaxy Watch 5) Galaxy Watch 5, were positive.
Geographically, North America rebounded as the largest market for smartwatches in the fourth quarter of 2022 and again held the lead for a full year. The region saw a significant increase in shipments, driven by Apple's strong performance in the fourth quarter. However, North America's share declined slightly, with India becoming another core region in 2022.
And in the fourth quarter of 2022, when China lifted coronavirus restrictions, shipments to China experienced their first recovery this year, and Apple received a wide response with its more diversified product range than in the previous round.
