The wearables market has been experiencing a steady rise for a few years with tech giants like Apple, Xiaomi, Huawei, Samsung, and Google pushing the boundaries of what these devices can do. However, Canalys’ report reveals a significant decline in wearables shipments during Q4 of 2022, which is the largest since data has been analyzed. Here are the details…

Basic Bands Sales Decline Affects Total Wearables Market Despite Smartwatches Growth

Canalys reports that only 50 million wearables units were shipped between October and December 2022, marking an 18% decline from the previous year. This decline affected all five major companies. Though Apple saw annual growth for the full calendar year, it was not immune to the Q4 slump. The report attributes the decline to a challenging macroeconomic environment in Q4, which could be attributed to several factors like supply chain disruptions, inflation, and consumer spending habits.

Apple retained its position as the market leader due to its popularity among iPhone users. Google took second place with the Pixel Watch despite a 25% decline in Fitbit devices. Xiaomi, Huawei, and Samsung all experienced YoY declines in shipments during the holiday period. Canalys categorizes wearables into basic bands, basic watches, and smartwatches. However, the differences between these categories are becoming increasingly blurry with every new device release.

Canalys predicts that smartwatches will continue to grow at around 10%, but the decline in interest for basic bands will set the total wearables market at a modest 2% rise. The wearables market has been a hotly contested space in the tech industry, with major players constantly vying for dominance. However, the Q4 slump shows that even the biggest players are not immune to market fluctuations. It will be interesting to see how these companies adapt to the changing market conditions and continue to innovate in the coming years.

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