(MENAFN- IANS) New Delhi, May 22 (IANS) India's wearable device market increased by 2.1 per cent (year-over-year) in the first quarter (Q1) of 2024 to 25.6 million units after growing by at least double digits consecutively since the fourth quarter (Q4) of 2017, a new report showed on Wednesday.
According to International Data Corporation (IDC), the growth was restricted by the high inventory carried over from the festive quarters in the second half (H2) of 2023.
The average selling price (ASP) for overall wearables dropped by 17.8 per cent in Q1 of this year, from $22.62 to $18.59, a record low.
“Vendors have started focusing on retail expansion via partnerships with large format national and/or regional retail chains and bundling wearables with other product categories like smartphones, laptops, etc," said Anand Priya Singh, Market Analyst, Smart Wearable Devices, IDC India.
According to the report, smartwatch shipments fell for the first time since Q4 of 2018, by 7.3 per cent (year-over-year) to 9.6 million units. The share of smartwatches within wearables declined to 37.6 per cent from 41.4 per cent in Q1 of 2023.
The earwear category rose by 8.3 per cent (year-over-year), shipping 15.9 million units.
The top five vendors namely boAt, Noise, Fire-Bolt, Boult, and Oppo, remain unchanged from a year ago, however, their collective share dropped from 63.9 per cent to 59.9 per cent, the report mentioned.
Moreover, the report showed that the momentum for the smart ring category continues, with 64,000 smart rings shipping in Q1 of this year at an ASP of $173.06. Ultrahuman resumes to lead the smart ring market in the country with a 43.9 per cent market share.
Commenting on the wearable device market outlook for the year, Vikas Sharma, Senior Market Analyst, Smart Wearable Devices, IDC India, said the smartwatch market is showing early signs of a slowdown in India.
"The vendors are facing challenges in luring customers to upgrade due to limited innovation and freshness in newer models. IDC expects a low double-digit annual shipment decline for smartwatches in 2024," he said.
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