Global smartwatch shipments rise by 1.5% in 2020, Apple retains top spot

The global smartwatch shipments in Q4 2020 saw a marginal year-over-year decline due to the Covid-19 pandemic, according to Counterpoint Research’s latest global shipments tracker. Overall, the smartwatch shipments registered a slight growth of 1.5% in 2020.

According to the Counterpoint report, Apple continued to maintain its number one position in the market and increased its share by 6%. The report noted that Apple’s growth helped the market drive closer to the premium segment.

Apple’s Watch Series 6 and SE did well as the two models registered 12.9 million units shipments. The two models also accounted for a 40% market share in the fourth quarter of 2020. Samsung also posted a slight 1% growth year-over-year. The Korean giant rebounded in the latter half of the year with the commercial availability of the Galaxy Watch 3.

The big surprise, however, was Huawei. The Chinese company registered a 26% year-over-year growth in shipments despite the sanctions imposed by the US. Honor, newly spun off from Huawei, did well as it doubled shipments from 2019.

Amazfit and Xiaomi were also ended the year on a positive note. The two companies posted double-digit growth.

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Counterpoint Senior Analyst Sujeong Lim said, “Price band dynamics during Q4 2020 indicate ASPs (average selling prices) are on the rise. 2019’s biggest segment ($101-$200) shrank by 7%pts, while the more premium $300-plus segments grew by 8%pts, helped tremendously by Apple, which enjoyed a dominant market share of over 70% in this category.”

Lim added, “The smartwatch market is being driven by three premium brands – Apple, Samsung and Huawei. We believe the ASPs will continue to rise over the next two to three years as these companies’ flagship models continue to lead. On the other hand, Apple’s success with its Watch SE model will likely spur others like Samsung to release similar variants, moving closer to the mass market. Over a three to four years timeframe, we see budget players like OPPO and realme gaining a significant share, intensifying overall competition and bringing down the prices.”