Samsung Has New Concerns As Its Smartwatch Market Share Dips In Q3

The wearable industry has received a major boost of late with the emergence of some of the best smartwatches. This is evidenced by quarterly freight statistics published by market research firms such as Counterpoint. The company's latest report, covering the third quarter of 2022, highlights significant growth in this segment as well as other wearables that tend to be less wallet-friendly than full smartwatches. But the growth appears to be at the expense of Samsung, which posted less than impressive numbers over the summer.

Counterpoint reports that global shipments increased by 30% in the third quarter of 2022 compared to the same period last year. In particular, the Indian smartwatch market has grown 171% year-on-year, making it the largest market in the world. On the other hand, other major emerging markets also grew in the third quarter, though not China or Europe, according to the Counterpoint Global Smartwatch Model Tracker.

To add more context to the data, analyst Woojin Son said that basic or budget smartwatches accounted for the shipment growth, with basic smartwatches accounting for 35% of the pie. Meanwhile, shipments of more expensive smartwatches classified by Counterpoint as high-end operating systems grew 23% annually. Regardless of the success of budget smartwatches, the higher average sales of luxury smartwatches means they earn more than their cheaper counterparts.

Not surprisingly, Apple's global smartwatch shipments are up 48%, thanks to the recent launch of the Apple Watch Series 8.

Samsung's shipments also rose, but at a less impressive pace of 6%. The sales performance of the new Galaxy Watch 5, as well as the Galaxy Watch 4 series, played a key role in the continued growth, with a 62% increase in shipments compared to the second quarter.

However, Samsung's share of the Indian smartwatch market has fallen below 3%.

Indian brand Noise is the leader in smartwatch shipments in the country, third in the world. The next few quarters could be tough for Samsung as noise continues to close the gap at lower price points.

As it stands, Samsung is second in the HLOS market with a 22.3% share, while Apple leads with a 50.6% share. However, both are down from previous highs.

Another interesting tidbit from the Counterpoint report comes from Garmin's numbers: the fitness-focused smartwatch maker's shipments haven't increased since the third quarter of 2021, but its average selling price is $365, even higher than Apple's average, meaning it An 11 % increase in income.