China Wearable Shipments Down in Third Quarter
Apple, Google, Samsung,China and smaller brands are ramping up basic health and fitness tracking watches to compete with Apple. Meanwhile, Apple saw flat shipments for its AirPods. Samsung was second in shipments in the quarter, but its numbers were down almost ten percent from the same period last year. Samsung also had to contend with competition from lower-priced vendors, such as the Galaxy Watch 4 series, which was popular in China.
Despite the growth in the wearable market, shipments from China were down this quarter. While Apple and Xiaomi fought for the top spot, many smaller companies struggled to break into the market. Xiaomi’s decline was mainly due to weakness in the wristband category. However, the company is making progress in watches and hearables. Huawei stayed in fourth place despite a decline of 10.8%. This is because the company remains highly focused on the domestic market. In addition, the Russian invasion of Ukraine put downward pressure on the European market.
Despite the slowdown, the overall market is growing at a faster pace than expected. The first three quarters of 2017 saw the emergence of a variety of wearable products. For example, the market for sports watches and noise-reducing headphones grew rapidly. But in order to maintain that growth rate, the market must extend its staged growth cycle and explore new growth points.
While Huawei wearable shipments in China are down, the company has other challenges that could hurt its future. The Chinese government has blocked its use of Google apps in its new models, and the company isn’t allowed to use its own apps outside of the country. As a result, it’s facing pressure from both the United States and China. But the company is confident that it can sustain its position in the long run.
The company continues to rely heavily on its home market of China. In the second quarter of this year, more than three-quarters of its shipments were accounted for in China. Despite these pressures, the company’s business has expanded outside of its home country by offering wearables compatible with any Android phone and offering competitive pricing.
In the third quarter of this year, China wearable shipments fell by 15%, the third consecutive quarter of decline. Apple, Xiaomi, and other Chinese companies are battling for market share, while smaller players are vying for margins. Apple is losing share to a number of competitors that are more cost-effective. But, despite the tough competition, Apple managed to grow 6.6% year-over-year. Meanwhile, Samsung shipped almost half a million units, down nearly 10% from last year. Moreover, both Apple and Samsung also faced increased competition from lower-cost vendors. Nonetheless, Apple’s AirPods sold well, and its Galaxy Watch 4 series saw a 32% growth in the quarter.
However, there were also some bright spots in China’s wearable market. Xiaomi saw a 24% decline in its wristbands, but the company has made progress in its watch and hearables segments. Huawei ranked fourth, with a 10% decline. However, the company’s performance in the European market has been negatively impacted by the Russian invasion of Ukraine.
While Chinese consumers have generally opted for watches and other electronic devices, wearable tech has experienced a downturn in the second quarter of 2017. The industry shipped 107 million devices during the second quarter, a decline of 6.9% year-over-year. This prompted analysts to reduce their outlook for the market. IDC said the decline is due to buyer concerns related to inflation and the recession. It also cited a decline in spending on non-electronics. Four of the top five wearable tech companies saw declines in the second quarter. The companies were, however, relatively well-performing in India, where wearable tech is still a new phenomenon.
This has resulted in Imagine Marketing’s growth plans to accelerate its expansion. The company, which was founded by Aman Gupta, has diversified its product portfolio with audio gear, smart wearables, personal grooming products, and mobile accessories. The company has a market share of over 40% in the domestic wearables category. The company’s growth plans include diversifying its supplier base and investing in international markets.
Xiaotiancai’s smartwatches are selling for more than $200 a unit. These devices offer a range of features, from calling parents to tagging locations on a shared map. They also enable kids to take selfies, which are useful for communication and socialization. These features, along with others available from other Chinese wearables vendors, make the Xiaotiancai smartwatches more of a necessity than a novelty.
The market for wearable devices is saturated. This has slowed growth and caused prices to rise. The global wearables market shipped 107 million units in the second quarter of 2018, down 6.9% year-on-year. The decline in shipments was due in part to rising prices, fears of recession, and increased spending on non-tech categories. This has caused some analysts to reassess their outlook for wearables. IDC forecasts flat shipments in the next three years, though growth is expected to return in 2023.