Samsung has new concerns as its smartwatch market share dips in Q3

Lower-price watches are eating Apple and Samsung’s lunches

The wearables industry has received a significant shot in the arm thanks to the arrival of some of the best smartwatches in recent memory. This is evident based on the quarterly shipment figures released by market research agencies such as Counterpoint. The firm’s latest report, covering the third quarter of 2022, highlights tremendous growth in the segment as well as in other wearables which tend to be lighter on the wallets than full-blown smartwatches. But it seems like this rise has come at the expense of Samsung, which had less than flattering figures for the summer.

Counterpoint’s report claims global market shipments rose by 30% in Q3 2022 compared to the same period last year. More specifically, the Indian smartwatch market saw a gargantuan 171% boost year over year, making it the largest market globally. On the other hand, other key developing markets also grew in the third quarter, though none of them were China or in Europe, as per the Counterpoint Global Smartwatch Model Tracker.

Adding further context to the data, analyst Woojin Son said that basic or budget smartwatches have been the driving force in this surge of shipments — basic smartwatches accounted for 35% of the pie. Meanwhile, the more expensive smartwatches, categorized under high-level operating systems by Counterpoint, had their shipments increase by 23% on an annual basis. Regardless of the gains made by budget smartwatches, the steep average selling price of high-end smartwatches meant they brought in more revenue than their cheaper counterparts.

Unsurprisingly, Apple’s global smartwatch shipments were up 48%, aided by the recent arrival of the Apple Watch Series 8.

Samsung also saw its shipments rise, though at a less impressive 6%. Both the new Galaxy Watch 5 as well as carrythrough sales performance from the Galaxy Watch 4 series had big roles to play in driving sequential growth with a 62% rise in shipments from Q2.

That said, Samsung did see its share in India’s smartwatch market sink below 3%.

Indian brand Noise leads the pack among smartwatch shipments in the country while securing third overall in the world. Subsequent quarters could prove challenging for Samsung as Noise continues to close the gap with lower-priced gear.

As it stands, Samsung remains second in the HLOS market with a 22.3% share, while Apple leads with 50.6%. Both are down from past peaks, though.

Another interesting anecdote from Counterpoint’s report comes from Garmin’s figures: the fitness-oriented smartwatch maker’s shipments didn’t rise compared to Q3 2021, but its higher average selling price of $365 — even beating Apple’s average — meant its revenue grew by 11%.