Apple Watch Leads Smartwatch Market Growth in 2021

Apple Watch photo

After suffering from hardly any growth in 2020 due to the COVID-19 pandemic, the smartwatch market recovered with a significant market growth in 2021 led by Apple Watch shipments.

Apple Watch Remained King of Smartwatches

According to the latest Counterpoint Global Smartwatch Model Tracker report, the Apple Watch again proved its dominance in the smartwatch market with a 30% market share in the global market. This is even though it fell by 3% YoY due to stronger competition. Interestingly enough, the average selling price (ASP) of the Apple Watch rose by 3% since Apple did not release a newer model of the cheaper Apple Watch SE in 2021. Because of this, Apple got half of the total smartwatch market revenue during the year, the report said.

Apple Watch Market
Source: Counterpoint Global Smartwatch Model Tracker, Q4 2021

Following far behind the Apple Watch were the Samsung Galaxy watches, getting only 10% market share and Huawei’s smartwatch with 7.7% market share. Other smartwatches that gained significant growth in their 2021 market shares were Amazfit, Garmin, and Huawei.

Indian Smartwatch Market Boosting Global Market Growth

Despite Apple’s dominance in the smartwatch market, it is interesting to note that the report highlighted the contribution of the growth in the Indian smartwatch market. It accounted for only 3% of the global market in 2020 before reaching almost 10% by the end of 2021. The report attributed this growth to the increasing popularity of the Indian brand Noise smartwatch. The Noise smartwatch gained popularity not only for its functionality but more so because of its affordability.

Exciting Future for Smartwatches

Counterpoint Associate Director Sujeong Lim said that while the growth of the smartwatch market in 2021 was meaningful in itself, what makes it even more meaningful is the bright future that lies ahead.

With their ability to monitor important health parameters like blood pressure, ECG, and SPO2, these devices are becoming popular. Further, the attractiveness of smartwatches as independent wearable devices will increase if more of them start supporting cellular connectivity.

Perhaps that’s a cue for other smartwatch manufacturers to step up their wearables and come up with newer models that support cellular connectivity. So far, the Apple Watch is the only smartwatch with a cellular option available from its lineup. In terms of functionality and health features, the other smartwatch watches available in the market have been catching up with the Apple Watch as well.

Incidentally, Apple’s dominance in the smartwatch market may get even stronger as many users are already awaiting the Apple Watch 8. Apple’s latest Watch series is rumored to be announced during the September 2022 Apple event.

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