Counterpoint research posted a new report today detailing how the smartwatch market managed to grow 24% in 2021. The report also highlights that the market growth was driven mainly by sub-$100 smartwatches and fitness trackers and that Apple is still mainly dominating the entire market with the Apple Watch.
The smartwatch market is very competitive, yet, the market grew a healthy 24% year-over-year thanks to the strong demand for sub-$100 smartwatches, according to Counterpoint Research. Samsung, Amazfit, and Garmin all recorded higher growth than the market average, and unsurprisingly, Apple still managed to dominate the market and continue leading.
Apple managed to keep its first position with 30.1% market share, although the company lost nearly 3%. The report claims it lost market share as it didn’t release a more affordable Apple Watch SE model in 2021.
Samsung managed to overtake HUAWEI, and it became one of the most successful companies after Apple to gain a 10.2% market share. The QoQ growth was more than 200% in the third quarter, which was likely thanks to the Galaxy Watch 4 series, which has switched over to using Google’s Wear OS platform. Google and Samsung partnered up to create the next generation of Wear OS platform, which is expected to roll out later in 2022.
Despite the US sanctions, HUAWEI launched several new high-end and kids’ smartwatches, but it didn’t manage to impress, and its shipments declined. The report says that “due to the Watch GT 3 and Watch Fit Mini, which were released in the fourth quarter, Huawei’s shipments more than doubled QoQ in the quarter.”
The company didn’t release a new smartwatch in 2021, which resulted in a decline, but it remained one of the most popular smartwatches, thanks to the company entering the markets such as Europe, and it helped the company stay the number one brand in kids’ smartwatches.
Amazfit managed to expand its position in the market in 2021, and it recorded more than 20% YoY growth over the past two years. The company managed to sell more GTR and GTS smartwatches, which helped the company increase its market share and position.
- Garmin performed better than expected in 2021. Garmin had initially focused on introducing high-priced smartwatches for special categories like aviation and divers. But it is gradually shifting focus to bringing attractive consumer products from price and design perspective. As a result, it showed 35% YoY growth and took sixth place by raising its global ranking by one place.
- Fitbit showed weak performance in 2021. Since the launch of the Sense and Versa 3 models in the third quarter of 2020, there has been no launch of new models, which seems to be due to strategy changes and reorganization due to the merger with Google. Therefore, it showed a YoY decrease of more than 15% in 2021. But it is expected to rebound with the release of the Versa 4 in the second half of 2022.
- Xiaomi showed strong performance with its Mi Watch Lite in the first half of 2021 and released the Redmi Watch 2 series in Q4 2021. In this series, it launched the ‘Lite’ variant to broaden users’ choices and we expect it to contribute to Xiaomi’s market share gain.
Apple Watch Series 7
It’s available in 41mm and 45mm models, and it has GPS and cellular versions. The cellular is best recommended for those who want to take calls while out and about, and those who want to connect to the internet, make calls while away from their devices.
Samsung Galaxy Watch 4
The Galaxy Watch 4 is the best companion if you want to monitor your health and fitness activities. It's one of the most customizable smartwatches on the market, and it has excellent features to keep you focused.