Smartwatches, once among the fastest growing consumer electronics segments, are now finding fewer takers in India. Shipments fell for the fifth consecutive quarter by 33% on-year in the January-March period, amid a shift from volume-driven sales of budget devices to a focus on premium features.
The quarter also saw a decline in the number of active brands in the segment and new models launched.
Market trackers said 2025 will be a year of correction for the industry where brands will focus on higher-end price segments to fuel growth. Shipments are expected to grow 2% on-year by the end of the year, after declining 34.4% on-year in 2024.
For top brands, launches have gone down from around five to six new models per quarter last year to an average of two to three models in Q1 2025, Counterpoint Research said.
The research firm said the overall installed base relative to smartphone users, estimated to be around 15-20%, has not changed significantly since last year.
The contribution of the sub-₹5,000 budget segment to overall shipments fell from 95% in Q1 2024 to 91% in Q1 2025, with the premium segment seeing sharper growth. The ₹5,000-10,000 price segment is emerging as the area of focus, which grew 17% on-year in Q1, in what is being seen as a year of correction for the industry, said Anshika Jain, research analyst, Counterpoint Research.
“Organic consumer demand and search queries have gone down for smartwatches. The attach ratio has peaked and is no longer increasing. The repeat purchase ratio is also much lower compared to products like TWS (truly wireless stereo) earbuds,” Varun Gupta, co-founder, Boult Audio, told ET.
