Wearable Devices Market Share

Updated: 5 Oct 2022

Wearables Growth Faces Challenges Through 2022, According to IDC Tracker

NEEDHAM, Mass., September 19, 2022 – The wearables market faced another challenging period in the second quarter of 2022 (2Q22) as global shipments declined 6.9% year over year to 107.4 million units according to new data from the International Data Corporation (IDC) Worldwide Quarterly Wearable Device Tracker. Demand has slowed due to rising inflation, fears surrounding recession, increased spending on other non-tech categories, and the hyper growth that the wearables market has experienced in the last two years.

While the list of top 5 companies has not changed (Apple, Samsung, Xiaomi, Huawei, and Imagine Marketing), four of the top 5 experienced year-over-year declines during the second quarter. Smaller brands continue to target lower price points, putting downward pressure on average selling prices (ASPs) for the incumbents.

"It's unfortunate that companies like Apple, Samsung, and Google are in the midst of launching more premium smartwatches at a time when appetite for high priced products remains in question," said Jitesh Ubrani, research manager for IDC Mobility and Consumer Device Trackers. "And even though pricing on some new products remains the same as the previous generation, the strength of the US dollar makes the purchase more difficult in local currencies around the world."

Rising prices and cooling demand have also led to a reduction in the overall outlook for wearables as IDC now forecasts shipments for the full year of 2022 to remain flat at 535.5 million units. However, growth will return in 2023 as demand for watches and hearables is expected to return due to new buyers in emerging markets and replacements in mature markets.

"While the wearables market was down in the second quarter and will most likely be flat this year, it is certainly not out," Ramon T. Llamas, research director, Mobile Devices and AR/VR at IDC. "As the wearables market takes slow steps towards maturity, it will eventually reckon the ebbs and flows between the record-breaking volumes we saw during the pandemic and what we see today. But overall, the trend continues upwards, just at a slower pace as consumers seek replacements and the number of new users starts to decline."

Top 5 Wearable Device Companies by Shipment Volume, Market Share, and Year-Over-Year Growth, Q1 2022 (shipments in millions)

Company 1Q22
Shipments
1Q22
Market Share
1Q21
Shipments
1Q21
Market Share
Year-Over-Year
Growth
1. Apple 32.1 30.5% 30.1 27.7% 6.6%
2. Samsung 10.9 10.3% 12.1 11.1% -9.9%
3. Xiaomi 9.8 9.3% 12.9 11.9% -23.8%
4. Huawei 7.7 7.3% 8.6 7.9% -10.8%
5. Imagine Marketing 3.2 3.0% 3.0 2.8% 5.2%
Others 41.7 39.6% 41.9 38.6% -0.5%
TOTAL 105.3 100.0% 108.6 100.0% -3.0%

1Q22 Company Highlights

  • Apple managed to grow 6.6% year over year during the quarter thanks to the performance of Apple Watches with the Apple Watch SE showing surprising resilience (over 2 million shipped) for a device that is more than one and half years old. Meanwhile, shipments of AirPods were flat during the quarter as the company faced more competition from low-cost products.
  • Samsung ranked second although its unit shipments dropped nearly 10% compared to last year. Samsung has typically relied on strong smartphone sales to bundle wearables (especially hearables) in many markets. Like Apple, the company was not immune to competition from lower priced vendors and the sheer number of brands offering hearables. The additional competition combined with slowing smartphone sales led to a decline in shipments for hearables. Wristbands also declined along with the overall category. However, the latest Galaxy Watch 4 series continues to remain popular as the company's watch shipments grew 32.7% during the quarter.
  • Xiaomi's decline was solely due to the weakness in the wristband category. That said, the company continues to make progress with watches and hearables and employs the same low cost, high value strategy.
  • Huawei retained the fourth position even though overall shipments declined by 10.8% during the quarter. The company remains heavily focused on the local Chinese market although its presence in Europe has grown over time. That said, the Russian invasion of Ukraine has put a lot of downward pressure on the European market so Huawei's sales into the region could be negatively impacted in the next few quarters.
  • Imagine Marketing once again held its position within the global top 5 due to its large presence in India although they may be experiencing early signs of saturation as growth within hearables declined 3.8% during the quarter. As a result, the company has been growing its presence in the watch category even though overall shipments remain well below 1 million units.

Contact Us