Connected objects are already bearing the brunt of the current economic climate and the tightening of household budgets. Global wearable sales fell 6.9% in the second quarter of 2022, according to IDC data. For the research firm, the explanation for this slowdown is the current threats of recession, as well as the strong growth recorded by the market for wearables over the past two years.
The leading companies in the wearables category have not changed, with Apple, Samsung, Xiaomi, Huawei and Imagine Marketing still at the forefront of this market. However, among these leading companies, four of the top five saw declines from a year earlier in the second quarter. Despite this decline, the leaders continue to add new wearable models to the market. Apple just introduced three new smartwatches to its portfolio this month, and last month Samsung launched its latest Samsung Galaxy Watch5.
“It’s unfortunate that companies like Apple, Samsung and Google are launching more premium smartwatches at a time when the appetite for high-priced products is now in question,” said Jitesh Ubrani, research director. for IDC Mobility and Consumer Device Trackers.
Return to normal expected in 2023
Inflation and the current economic uncertainty have suppressed the growth of the sector, pushing the general public to abandon these often expensive technological products. In addition, smaller brands continue to target lower prices, putting downward pressure on incumbents’ average selling prices, IDC analysis.
“Even though the prices of some new products remain the same as the previous generation, the strength of the US dollar makes it more difficult to buy in local currencies around the world,” explains Jitesh Ubrani. The wearables market has an overall weak outlook for the remainder of 2022. IDC expects full-year 2022 shipments to remain flat at 535.5 million units. Despite this forecast, the research firm expects the market to return to normal in 2023 due to new buyers in emerging markets and replacements in mature markets.
“Even though the wearables market was down in the second quarter and will most likely be flat this year, it’s certainly not extinguished,” said Ramon T. Llamas, director of research, mobile devices and AR/VR at IDC.
Source: ZDNet.com