The global wearables market kicked off 2024 on a strong note, with shipments of wearable devices increasing by 8.8% year over year in the first quarter (1Q24), reaching 113.1 million units, according to the latest report from the International Data Corporation (IDC).
Based on IDC’s data, this growth comes despite a continued drop in average selling prices (ASPs), which fell 11% for the fifth consecutive quarter, reflecting a shift towards more affordable options in the wake of economic challenges.
“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 for IDC’s Worldwide Mobile Device Trackers.
Ubrani emphasized that until significant advancements in sensor technology or algorithmic capabilities emerge, enabling new health insights such as blood pressure or glucose tracking, consumers are likely to prefer more cost-effective options. This trend is driving brands to diversify their pricing strategies and invest more in the mid-to-value segments.
Ramon Llamas, research director with IDC’s Wearables team, highlighted the importance of regional vendors in this growth dynamic.
“The appetite for wearables remains strong in emerging markets, but premium prices are often prohibitive,” Llamas said. This has allowed local brands to cater to these markets with affordable yet feature-rich devices, a strategy that has propelled companies like Xiaomi and Imagine Marketing (boAt) into prominent global positions.
Brand performance
Apple maintained its lead in the market, although it faced significant hurdles. Economic pressures, a temporary ban on specific Apple Watch models, and the absence of new AirPods contributed to a 19.1% drop in Apple Watch shipments and an 18.8% decline in its hearables, including AirPods and Beats.
Xiaomi experienced a robust 43.4% growth year over year, buoyed by the relatively easy comparison to its 16% decline in the same quarter of 2023. The company’s value-driven products found favor with consumers, and its renewed focus on Wear OS watches boosted its standing as the third-largest vendor within the Google ecosystem, enhancing its smartwatch ASPs.
Huawei moved into the third position, surpassing Samsung. Its resurgence in the smartphone market has had a positive spillover effect on its wearable segment, particularly through product bundling strategies. Huawei’s sales remain heavily concentrated in China, accounting for about 75% of its total wearable sales.
Samsung slipped to fourth place despite strong growth from its lower-priced hearables and the launch of the Galaxy Fit 3. The company’s overall performance was hampered by a 5.1% decline in core smartwatch volumes.
Imagine Marketing (boAt) completed the top five, riding on its reputation for extreme value. While the Indian brand saw a 17.5% increase in its hearables shipments, its smartwatch volumes plummeted by 61.3%, impacted by fierce domestic competition.
Market Outlook
As the wearables market evolves, brands that adapt to the shifting consumer preferences towards mid-range products and capitalize on emerging market opportunities are likely to thrive. The ongoing decline in ASPs suggests a challenging environment for premium brands, which may need to innovate significantly to regain momentum. Meanwhile, the growth in shipments signals a broadening base of consumers integrating wearables into their daily lives, promising continued expansion in this dynamic sector.