The introduction of some of the top smartwatches in recent memory has given the wearables sector a considerable boost. The quarterly shipment data given by market research companies like Counterpoint make this clear. The most recent study from the company, which covers the third quarter of 2022, shows strong growth in both the sector and other wearables, which are typically less expensive than full-fledged smartwatches. However, it appears that Samsung, which had less than favorable summer sales data, has suffered as a result of this increase.
Samsung introduced the Galaxy Watch5 series during the reporting period, showing a 62% quarterly rise and increasing its market share for HLOS by 5% over the previous quarter. Samsung’s shipments rose merely 6% in the fourth quarter of 2021, which caused it to lose steam in Asia. It fell under 33%. With a 27% annual decline in market share, Korea maintained its second-place position overall, and the gap between the Indian noise and the third-placed machine is closing.
Analyst Woojin Son added that basic or budget smartwatches have been the main force behind this rise in shipments; simple smartwatches accounted for 35% of the pie, adding additional perspective to the statistics.
The shipment of more expensive smartwatches, which Counterpoint classified as using high-level operating systems, increased by 23% annually. Despite the gains achieved by low-cost smartwatches, high-end smartwatches generated more revenue than their more affordable competitors due to their high average selling prices. Naturally, Apple’s smartwatch shipments increased 48% globally, helped by the recent release of the Apple Watch Series 8.
Samsung’s shipments increased as well, but at a less spectacular 6%. With a 62% increase in shipments from Q2, the new Galaxy Watch 5 and carryover sales performance from the Galaxy Watch 4 series both played significant roles in fostering sequential growth. The data from Garmin, a maker of fitness-focused smartwatches, provides another intriguing anecdote from Counterpoint’s report. Although the maker’s shipments were flat compared to Q3 2021, its higher average selling price of $365—which even surpassed Apple’s average—led to an 11% increase in revenue.