The global wearable band shipments rose 0.2 percent in Q2 2024 to 44.3 million devices, according to Canalys.
Basic watches shipments rose 6 percent, largely thanks to Huawei and Xiaomi. Basic watches accounted for 48 percent of the wearable band market, their highest share yet. Huawei, Xiaomi, Noise, Fire Boltt, and boAlt are the leading Basic watch makers in Q2.
Smartwatch shipments remained static compared with Q2 2023, as the positive momentum from Samsung, Garmin, Huawei and Google offset Apple’s decline. Apple, Samsung, Garmin, Huawei and Google are the leading Smartwatch markets in Q2.
Basic band shipments fell 14 percent. Xiaomi, Huawei, Google, Samsung and Honor are the leading basic band makers in Q2 2024.
Last year’s strong basic watch growth came from local leaders in India. But the latest growth was mainly driven by China-based Huawei and Xiaomi, which accounted for 15 percent and 13 percent of global basic watch shipments. Huawei and Xiaomi have done well in China, thanks to pricing strategies and incorporating premium fitness tracking into affordable basic watch models.
The largest basic watch vendors have prioritized volume during recent quarters and will need to pivot toward brand awareness and positioning to realize their ambitions of moving upmarket. Strategic partnerships, such as Xiaomi’s ability to leverage Suunto’s algorithms, will be important to elevate both product offerings and brand positioning,” said Canalys Research Manager Cynthia Chen.
Wearable band vendors are diversifying their portfolios to capture new opportunities, focusing on new segments, technologies and software.
Device ecosystem vendors are exploring eSIM-enabled watches supporting 4G / 5G connectivity, aiming to expand their partnerships with telcos in addition to exploring new potential revenue streams.
Google’s two-year complimentary cellular subscription on the new Pixel Watch 3 in the US through Google Fi will serve as a critical test of this strategy.
“More vendors are launching advanced sport watches into the market, such as Xiaomi’s Watch S4 Sport and Samsung’s Galaxy Watch Ultra, seeking to reach a wider audience, elevate their premium flagships further and take a share of a segment that significantly outperformed the market in 2023,” said Canalys Research Analyst Jack Leathem.
Canalys anticipates double-digit growth in smartwatch shipments in H2 2024, driven by new offerings from Apple, Samsung and Google.
Baburajan Kizhakedath
