NEW DELHI: The global outsourced manufacturing smartwatch<\/a> shipments grew 15% year-over-year and accounted for 69% of overall shipments in the second half of 2022 (H2 2022), according to the latest report released by Counterpoint Research<\/a>.
“The YoY increase in outsourced smartwatch shipments<\/a> in H2 2022 was driven by the strong performance of Indian brands Noise, Fire-Boltt<\/a> and boAt<\/a>. The outsourced manufacturers who offered production services for these brands benefited in H2 2022,” said Senior Research Analyst Shenghao Bai.
Bai noted that 69% of global smartwatches were produced by ODM\/EMS in H2 2022, compared with 63% in H2 2021.
Luxshare, Foxconn<\/a> and COMPAL<\/a> were the top three outsourced manufacturers in H2 2022 (by volume), accounting for a share of 21%, 16%, and 12%, respectively. The top three companies cumulatively accounted for half of the global smartwatch outsourced shipments during the period, as per the research firm.
Luxshare ranked first in H2 2022 as it undertook around 40% of Apple Watch<\/a> orders. Among tier-2 players, Huaqin, LINWEAR, I DO and Yawell displayed strong performances in their smartwatch production businesses.
NEW DELHI: The global outsourced manufacturing smartwatch<\/a> shipments grew 15% year-over-year and accounted for 69% of overall shipments in the second half of 2022 (H2 2022), according to the latest report released by Counterpoint Research<\/a>.
“The YoY increase in outsourced smartwatch shipments<\/a> in H2 2022 was driven by the strong performance of Indian brands Noise, Fire-Boltt<\/a> and boAt<\/a>. The outsourced manufacturers who offered production services for these brands benefited in H2 2022,” said Senior Research Analyst Shenghao Bai.
Bai noted that 69% of global smartwatches were produced by ODM\/EMS in H2 2022, compared with 63% in H2 2021.
Luxshare, Foxconn<\/a> and COMPAL<\/a> were the top three outsourced manufacturers in H2 2022 (by volume), accounting for a share of 21%, 16%, and 12%, respectively. The top three companies cumulatively accounted for half of the global smartwatch outsourced shipments during the period, as per the research firm.
Luxshare ranked first in H2 2022 as it undertook around 40% of Apple Watch<\/a> orders. Among tier-2 players, Huaqin, LINWEAR, I DO and Yawell displayed strong performances in their smartwatch production businesses.
“The top three manufacturers mainly benefited from Apple<\/a> Watch orders in H2 2022. Luxshare’s smartwatch shipments<\/a> were flat compared with that in H2 2021. Foxconn<\/a>’s shipments in H2 2022 rose due to the orders from Apple<\/a>, helping the company rank second in terms of shipments. Meanwhile, COMPAL<\/a> reduced orders from Apple in pursuit of a higher profit margin,” said Senior Research Analyst Ivan Lam.
“In Tier 2, Huaqin’s shipments increased slightly following the company’s partnership with Samsung. Huaqin also continued its cooperation with Huawei, Honor and Oppo,” said Lam.
He added that manufacturers like LINWEAR, I DO and Yawell increased their shipments by cooperating with multiple brands, especially those from India which mainly focus on the <$50 (~ sub-Rs 4,000) segment. “Yawell received a large share of orders from Noise and Fire-Boltt<\/a> in Q3 2022.”
Counterpoint expects the share of shipments from outsourced manufacturers to rise to about 70% in 2023 from 68% in 2022 all year.
“The competition is getting tighter as well. There are increasing requirements for OEMs to be mindful of cost, deliverability and reliability,” said Bai.
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