Wearable device market down 20%: What went wrong?

India's wearable device market recorded its second consecutive quarterly decline, driven by a slowdown in new product launches and cautious inventory strategies.

- RAKESH KUMAR

According to IDC's latest data, the market for wearable devices—including smartwatches, wristbands, earwear, and fitness trackers—fell by 20.7% year-on-year (y-o-y) to 38 million units in Q3 2024. Despite the festive season, subdued consumer demand and inventory adjustments weighed heavily on shipments. For the first time since Q2 2019, the average selling price (ASP) of wearables rose 1.3% y-o-y to $21.3 in Q3 2024, reflecting a shift towards higher-priced models.

Smartwatch shipments plunge The smartwatch segment experienced the sharpest drop, with shipments falling by 44.8% y-o-y to 9.3 million units. Brands prioritized clearing older inventory during the festive sales period, often through aggressive discounts on e-commerce platforms. Despite declining volumes, smartwatch ASPs rose slightly by 1.4%, from $25.8 to $26.2. Advanced smartwatches also saw a significant 39.9% y-o-y decline, though their market share improved marginally from 2.4% to 2.6%, suggesting a focus on premium offerings within this segment.