The wearables market grew 8.8 percent in the first quarter (1Q24) to 113.1 million units, according to new data from the International Data Corporation (IDC).
Average selling prices (ASPs) of wearables declined for the fifth quarter in a row, dropping 11 percent in 1Q24 as emerging markets gained traction and as the economy put downward pressure on consumer spending.
“The lack of major innovation in the premium segment has allowed tier-2 brands to narrow the gap across the board,” said Jitesh Ubrani, research manager, Worldwide Mobile Device Trackers.
“It’s important to pay close attention to smaller, regional vendors,” said Ramon T. Llamas, research director with IDC’s Wearables team. “The appetite for wearables is not lost on emerging markets, but higher prices on wearables from premium brands make them cost prohibitive for many.”
Apple Watch shipments declined 19.1 percent while hearables including AirPods and Beats declined 18.8 percent during the quarter.
Xiaomi ranked second with 43.4 percent growth thanks to an easy comparison over a 16 percent decline in the first quarter of 2023. The company’s value-oriented products resonated with users and the recent re-entry into Wear OS watches has helped the company become the third largest vendor within the Google ecosystem and grow its overall smartwatch average selling prices.
Huawei captured the third spot, surpassing Samsung, thanks to the return of its smartphone business, which had a positive impact on wearables due to bundling. However, the company’s sales are heavily concentrated in China with about three quarters coming from the region.
Samsung slipped into fourth place. The launch of the Galaxy Fit 3 as well as success with lower-priced hearables helped the company achieve market beating growth although its core smartwatch volume declined 5.1 percent during the quarter.
Imagine Marketing (boAt) is in the fifth position. The Indian brand has managed to grow its hearables volume by 17.5 percent but its smartwatches declined 61.3 percent due to extreme competition within the home country.
