2022 saw some pretty impressive improvements regarding wearable technology – we’ve gotten stuff like temperature-sensing functionality, improved blood pressure tracking, and even improved battery life and rugged designs. Interestingly though, research has shown that users in general have purchased less smartwatches and fitness bands, more specifically during Q4 of 2022.
According to data gathered by research firm Canalys, Q4 2022 saw an 18% shipment decline (around 50 million units) in wearable bands, which interestingly is the first double-digit decline for the market compared to previous quarters from the past few years. It should also be noted that smartwatch sales likewise have declined by as much as 17%, with more basic fitness bands on a ninth consecutive decline with a 43% drop, with a 3% growth for basic watches in India.
Usually the top dog in the race, the research shows that Apple experienced a 17% decline in comarison to a stronger quarter back in 2021, after returning to its regular launch schedule. On the other hand, Google rose to second place, despite falling 25% to weak Fitbit shipments, and managed to somewhat avoid a direct pitfall with 16% smartwatch growth, thanks to the launch of the Pixel Watch, a considerably impressive feat.
As for the rest of the competition, Chinese brands including Xiaomi and Huawei, and even industry giant Samsung all experienced big declines as well, with the latter falling all the way to fifth place, ending Q4 with a 35% decline. Data suggests that this drop was in part due to the Galaxy Watch 5 serving more of an iteration rather than a full-on revolutionary upgrade. Canalys Analyst Cynthia Chen says:
“The wearable band market is expected to grow at a modest 2% in 2023. While we expect basic bands to continue declining, basic watches and smartwatches will grow, but growth will be capped below 10%. Vendors remain vigilant and will emphasize quality rather than quantity given some recovery in consumer spending.”
Some of the biggest smartwatch launches last year include Apple’s Watch Ultra, which incorporates rugged hardware design alongside better battery performance, Google’s new Pixel Watch that comes with added Fitbit tracking functionality, and the samsung Galaxy Watch 5 series. In the case of Google, the Pixel Watch has managed to sell a considerable amount of units, totalling up to 880,000 units in Q4 2022, a commendable effort for a first-generation device.
As for what’s to be expected in the coming months, Canalys says that we can expect smartwatches – which nevertheless experienced 8% growth – to do better compared to basic watch devices with 6% growth.
